Top 5 Accounting Software Tools for Freelancers in 2025

Freelancers often juggle invoicing, expenses, tax deadlines, and cash flow—all while delivering their core services. The right software removes friction by automating repetitive tasks, reducing errors, and offering clarity. At CloudAccountant.co.uk, we’re experts in onboarding and supporting freelancers with the tools they rely on—especially Xero and FreeAgent.

Xero remains one of the most widely recommended cloud accounting platforms for freelancers and small businesses—due in part to its intuitive design and competitive pricing.

• Automatic bank reconciliation via real-time feeds, saving hours manually matching transactions.

• Create smart invoices and reminders so you get paid faster.

• Track VAT, project costs, and profitability as you go.

With unlimited users, advanced ledger controls, and a robust app ecosystem, Xero grows with your business. At CloudAccountant.co.uk, we provide full support with setup, custom integrations, and training via Xero setup services.

FreeAgent is tailored for UK freelancers, contractors, and micro-businesses—delivering simplicity with compliance.

• Track time, projects, and expenses in one dashboard.

• Automatically calculate and submit VAT and Self Assessment returns to HMRC.

• Monitor cash flow forecasts and tax liabilities in real time.

FreeAgent streamlines tax obligations and offers peace of mind. As certified partners, CloudAccountant.co.uk helps with setup, template creation, and bridging the tool with your accounting needs.

QuickBooks Online remains a go-to solution, especially for traders with simpler bookkeeping needs.

• Classify income and expenses as business or personal with ease.

• Track mileage using the mobile app.

• Get live estimates of your Self Assessment tax bill.

If you’re new to freelance accounting, QuickBooks offers a smooth learning curve and cost-effective subscription. CloudAccountant.co.uk can help to export data, make HMRC submissions, and maintain tidy accounts.

Zoho Books is a budget-friendly, full-featured accounting app suited for freelancers already using Zoho’s ecosystem.

• Automate invoicing, client reminders, and billable hours.

• Generate and monitor detailed custom reports.

• MTD-compliant VAT submissions via HMRC.

If you use Zoho CRM or Zoho Projects, Zoho Books integrates seamlessly.

Sage Accounting offers a familiar, reliable option for freelancers stepping up to cloud accounting from traditional desktop systems.

• Generate and send invoices, reconcile bank feeds.

• Submit MTD and VAT returns via software tools.

• Manage recurring billing and automated workflows

If you’re used to Sage’s ecosystem, Sage Accounting provides continuity with the benefit of cloud automation. CloudAccountant.co.uk offers support during your transition and ongoing advice to ensure you remain MTD-compliant.

When choosing accounting software, consider:

• User friendliness—if you’d rather spend time freelancing than reconciling accounts.

• MTD compliance—tools like FreeAgent, Xero, and Sage send your VAT and tax data directly to HMRC.

• Integration needs—connect with payment systems, CRMs, or time-tracking tools.

• Support—especially during setup, troubleshooting, and submissions.

If you’re still deciding, our expert team can compare options or recommend the best fit based on your workflow and business type.

We’re more than accountants—we’re your software partners. We offer:

• Setup and ongoing support for Xero and FreeAgent

• HMRC submission and Making Tax Digital guidance

• Proactive tax and cash flow planning

• Experience across freelancers from designers to IT contractors

Want to explore how accounting software can elevate your business? Talk to our team today.