Best Accounting Software for Consultants: A Comprehensive Guide

1. QuickBooks Online

QuickBooks Online is one of the most popular accounting solutions for consultants. It's a scalable software that's a great option for a variety of small businesses. One of the standout features of QuickBooks Online is its ability to manage projects and add related transactions like expenses, income, and time entries. This helps you determine where you're making money on a specific client or project.

Pros

• Real-time collaboration and insights with colleagues, accountants, and bookkeepers.
• Spot trends with a revenue dashboard.
• Financial hub where every dollar can be tracked.
• Easy invoicing including batch invoicing.
• Integrates with other financial management tools, such as Shoeboxed.

Cons

• Some features may be complex for beginners.
• Limitation on the number of users.

Pricing

Add payroll for an additional cost. 30-day free trial available.

QuickBooks Online is a top choice for consultants due to its time-tracking feature. Employees can clock in and out from their mobile device or time can be tracked by client or service. Automated employee timesheets streamline payroll and save money.

Best For

QuickBooks Online is best for small business owners. However, if your business is rapidly expanding, you’ll need to choose the Premium or Select options.

2. FreshBooks

FreshBooks is a fantastic choice for small business owners, especially those who are self-employed. This software is designed to help you stay on top of your accounting without a steep learning curve. Creating invoices has never been easier; you can send customized invoices directly to your clients without leaving the platform.

Key Features

• Invoicing: Create and send invoices quickly. FreshBooks even calculates sales tax and totals automatically.
• Expense Tracking: Keep track of your income and expenses with powerful sorting options.
• Bank Feeds: Automatic bank feeds update daily, giving you a real-time overview of your cash flow.
• Reports: Get insightful reports that are easy to understand. All the information you need is available from your dashboard.

Pros

• Very beginner-friendly and easy to use
• Project management and time-tracking tools
• Branded invoices
• Competitively priced plans
• Track unlimited expenses
• Create unlimited estimates
• iOS and Android apps
• Invite your accountant with most plans

Cons

• Only 5 different clients can be billed in the Lite version
• You will need the most expensive plan to remove the FreshBooks branding from your invoices
• Doesn’t offer document management
• Training not offered
• Payroll is not included (available as an add-on)
• Few customization options

Pricing

FreshBooks offers four pricing tiers:

1. Lite: $15 per month. Includes unlimited invoicing for up to 5 billable clients, unlimited expense tracking, and sales tax tracking.
2. Plus: $25 per month. Adds features like automatic expense tracking and recurring billing.
3. Premium: $50 per month. Allows for unlimited billable clients and project profitability tracking.
4. Select: Custom pricing for businesses with more complex needs. Includes a dedicated account manager and specialized features.

FreshBooks is a good fit for service-based businesses, such as consultants, web designers, and photographers. If your business is growing fast, you might need to opt for the Premium or Select plans.

Overall, FreshBooks is a solid choice for small business owners who need an easy-to-use accounting solution. However, it can get pricey if you need to add multiple users or advanced features.

3. Xero

Xero is a fantastic choice for consultants looking for a comprehensive accounting solution. It's a global small business platform with 3.95 million subscribers. With Xero, you can handle core accounting, payroll, workforce management, expenses, and projects all in one place.

Key Features

• Invoicing: Create and send invoices directly from Xero. You can even set up automated reminders and track invoice status to ensure you get paid on time. Plus, you can brand your invoices with your logo for a professional touch.
• Mobile App: Xero offers a bookkeeping and accounting app for both iOS and Android. This allows you to send invoices, update your books on the go, and view incoming and outgoing funds.
• Project Tracking: Track your project's time and costs easily. Xero offers a mobile location-based job tracker and a desktop timer for project tracking. This helps you stay within budget and monitor project progress.
• Document Storage and Management: Store financial documents, contracts, bills, and receipts in Xero. You can upload documents from your mobile device and organize them into folders for easy access.

Pricing

Xero offers three plans starting at $15 per month. Currently, there's a 60% discount for the first four months and a free 30-day trial. While it doesn't offer a free forever plan, the pricing is reasonable for most small businesses.

Ease of Use

Xero's interface is user-friendly with a grid-like layout. However, it might take some time to get used to navigating the menus. A handy + button at the top of each screen gives you quick access to key actions like creating a new invoice.

Xero is a solid choice for consultants who need a robust accounting solution with advanced features like project tracking and document management. While it has a slight learning curve, the benefits far outweigh the initial setup challenges.

4. Zoho Books

Zoho Books is a solid choice for consultants, especially if you're already using other Zoho products. It integrates seamlessly with the Zoho suite, making it a convenient option for those who want everything in one place.

Zoho Books offers a variety of features that are perfect for small businesses. You can track expenses, manage invoices, and even handle tax compliance. The software also includes a customer portal, which makes it easy for your clients to view invoices and make payments.

Pricing

Zoho Books has a range of pricing plans to fit different needs:

• Free Plan: For businesses earning less than $50,000 annually.
• Standard: $20/month for up to 3 users and 5,000 invoices.
• Professional: $50/month for up to 5 users and unlimited invoices.
• Premium: $70/month for up to 10 users and unlimited invoices.
• Elite: $150/month for up to 10 users, unlimited invoices, and advanced inventory.
• Ultimate: $275/month for up to 15 users, unlimited invoices, and advanced inventory.

You can also add extra users for $3 per user per month and get receipt scanning for $10 for 50 scans per month.

Add-Ons and Extras

Zoho Books offers two main add-ons:

• Users: Add more users for $2.50 per user per month.
• Advanced Autoscans: Get 50 more auto-scans per month for $8.

Reputation

Zoho Books has a strong reputation, with a 4.4-star rating on Capterra and a 4.5-star rating on G2. Users find the features intuitive but note a slight learning curve. The software is praised for covering all the basics like estimates, invoices, and expense tracking.

Zoho Books is a great fit for service-based businesses like consultants, landscapers, and plumbers. It integrates well with other Zoho apps, offering extensive features for growing businesses.

Our Experience

We found Zoho Books to be feature-rich but with a small learning curve. The features are listed on the left-hand menu, and while it takes some time to get used to, the software is quite intuitive once you get the hang of it. The mobile app is also excellent, allowing you to perform all the same functions as the web-based interface.

Pros & Cons

Pros:

• Free forever plan available
• Low-cost paid plans
• Track expenses and mileage
• Integrates with other Zoho apps
• Manage 1099 contractors
• Recurring invoices
• Project and task time tracking
• Customer portal
• Automations
• Tax compliance tools

Cons:

• Payroll costs extra
• Free plan has a maximum of 1,000 invoices per year
• Must pay more to add more than each plan’s max user count

5. AccountSight

AccountSight is a top choice for consultants due to its comprehensive time tracking and billing features. It's especially useful for those who need to manage time and expenses efficiently. One of the standout features is its multi-level timesheets, which allow you to capture time data at various levels, such as project or client level. This makes it easier to track billable hours accurately.

However, it's important to note that AccountSight isn't a complete accounting solution. It lacks essential bookkeeping features like bank reconciliation and income and expense tracking. If you need these features, you might want to consider other software on this list.

Key Features

• Timesheet Management: AccountSight offers multi-level timesheets, allowing employees to upload timesheets individually or in bulk. Managers can approve or reject timesheets and add comments.
• Invoicing: You can create manual invoices, invoices based on billable hours, and recurring invoices. The software also allows for predefined billing rates and ad hoc discounts.
• Reporting: Get real-time visibility into project performance with detailed reports. You can analyze weekly timesheet data, track billable realization, and review project expenses.
• Expense Tracking: Manage all project expenses and set expense types with charge rates or per-unit costs. Comments can be added for each date, project, and expense category combination.
• Project Planning: Plan projects, forecast resource needs, and allocate the right resources. Gain insights into existing or future resource gaps.

Pricing

AccountSight offers a free plan and three paid plans:

Customer Support

AccountSight provides multiple support options, including phone support, live chat, email, and online resources. The average user review rating is 4.9 out of 5, indicating high customer satisfaction.

If you're a consultant looking for robust time tracking and billing features, AccountSight is a solid choice. Just keep in mind that it doesn't offer a full chart of accounts for bookkeeping.

Best For

• Consulting firms needing advanced time tracking
• Project-based businesses requiring detailed reporting and analytics
• Consultants who need strong client management tools

6. Wave

Wave is a fantastic choice for consultants, especially those just starting out or working with a tight budget. It's excellent free accounting software that offers a lot of essential features without any cost.

Key Features

• Unlimited income and expense tracking
• Unlimited bank and credit card connections
• Basic accounting reports and financial statements
• Customizable sales taxes
• Dashboard for monitoring invoice statuses and cash balances

Invoicing Features

Wave's invoicing features are also free and include:

• Unlimited invoicing
• Automatic payment reminders
• Ability to turn estimates into invoices
• Automatic syncing of invoicing and accounting

Paid Features

While many features are free, some services come with a fee:

• Payroll: $40/month
• Advisors: $149/month
• Mobile receipt feature: $8/month

Pros and Cons

Pros:

• Free accounting and invoicing features
• User-friendly and intuitive interface
• Cost-effective for consultants on a tight budget
• Accepts online payments

Cons:

• Limited integrations compared to competitors
• Limited scalability
• Mobile apps aren’t very comprehensive
• Email-only customer service

Wave is a great tool for small business, non-profits, and entrepreneurs. It’s reliable, easy to understand, and works hand-in-hand with you every step of the way.

Pricing

• Invoicing: $0/month
• Accounting: $0/month
• Mobile receipt feature: $8/month
• Payroll: $40/month
• Advisors: $149/month

7. Kashoo

Kashoo is a straightforward accounting software designed for consultants. Its user interface was completely revamped recently, making it one of the easiest platforms to navigate. The setup process is simple, allowing consultants to quickly connect their tax details and bank accounts.

Kashoo offers several user-friendly features:

• Dashboards with timely insights
• Quick invoicing
• A 'bills to pay' feature
• A contacts feature to track clients and vendors

However, the reporting features are somewhat limited. Kashoo doesn't offer sales reports or many customization options.

Pros

• Multi-currency support
• User-friendly navigation
• Easy setup process
• Invoicing module with various payment options

Cons

• No sales report
• Basic functionality
• Limited customization for reporting

Pricing

• Trulysmall Accounting: $216/year ($18/month)
• Kashoo: $324/year ($27/month)

Kashoo’s updated interface makes it one of the most user-friendly platforms for consultants.

Kashoo is ideal for consultants who need a simple, easy-to-use accounting solution.

8. Sage Business Cloud Accounting

Sage Business Cloud Accounting is a user-friendly software designed with unique integrations in mind. One of its standout features is the open API, which allows consultants to create custom integrations tailored to their needs. This is something you won't find with many of Sage's competitors.

Sage offers customizable invoices that can match your consulting business's branding. Plus, the mobile app lets you create and send invoices, record expenses, and view financial performance graphs while on the go.

Key Features

• Open API for customizable integrations
• Customizable invoices
• Mobile app for on-the-go financial management
• Over 20 financial reports, including balance sheets and profit & loss statements
• Expense tracking and project management capabilities

Pros

• Open API for unique integrations
• Customizable invoices
• Mobile app for financial performance tracking

Cons

• Can't create recurring invoices
• No automatic payment reminders
• Can't track billable hours or add billable expenses

Pricing

• Sage Accounting Start: $10/month
• Sage Accounting: $7.50/month for the first 6 months, then $25/month

Sage Business Cloud Accounting is perfect for consultants who need a flexible and customizable accounting solution. While it has some limitations, its unique features make it a strong contender in the market.

9. NetSuite

NetSuite is a powerhouse when it comes to accounting software for consultants. It's packed with features that make managing finances a breeze. Let's dive into what makes NetSuite stand out.

NetSuite offers a range of automations that can save you time and reduce labor costs. These include creating journal entries, reconciling accounts, performing tax calculations, and matching invoices to vendors or purchase orders. Automating these tasks allows your team to focus on more important matters.

Another standout feature is its domestic and global tax management tools. NetSuite handles everything from recording transactions and managing payables and receivables to collecting taxes and generating compliance reports. It even updates tax rates across 110 countries monthly, ensuring you always apply the correct tax amount.

Payment management is also a breeze with NetSuite. The SuitePayments tool lets you process customer credit and debit card payments, make payments using online bill pay, ACH, direct deposit, or electronic funds transfer (EFT). Plus, it's PCI DSS-compliant, which means your data is secure.

NetSuite's product integrations are another big plus. You can integrate it with other NetSuite products like financial, inventory, and order management, HR, customer management, and e-commerce solutions. This creates a unified platform where all your data is synced across your organization for greater efficiency.

NetSuite is not just about accounting; it's about creating a cohesive system that supports your entire business. From financial management to inventory and customer relations, NetSuite has you covered.

However, it's worth noting that NetSuite's pricing is custom, and you’ll need to speak with a sales team member for a quote. While it offers a lot of features, it can be pricey, especially for small businesses. But if you're looking for a comprehensive solution that can scale with your business, NetSuite is a solid choice.

10. Shoeboxed

Shoeboxed is a fantastic tool for consultants who need to keep track of their receipts and expenses. It's especially great for those who want to automate and simplify receipt management. With Shoeboxed, you can scan receipts on the go using their app or use their Magic Envelope service to mail in your receipts for processing. This makes it super easy to stay organized and keep your desk free of paper clutter.

One of the best features of Shoeboxed is its ability to integrate with popular accounting software like QuickBooks. This means you can sync your receipts and expenses directly with your existing accounting system, saving you time and reducing the risk of errors. Plus, Shoeboxed automatically categorizes your expenses into 15 editable tax categories, making tax time a breeze.

Shoeboxed also offers a range of plans to suit different needs and budgets. Whether you're a sole proprietor or part of a larger team, there's a plan for you. And with a 30-day free trial, you can try it out and see if it's the right fit for your business.

Shoeboxed is a top choice for consultants because it automates and simplifies receipt management, integrates with existing accounting software, and provides a range of features to help you stay organized and efficient.

Here are some key features of Shoeboxed:

• Receipt scanning via app or Magic Envelope service
• Integration with QuickBooks
• Automatic categorization of expenses
• Customizable expense categories
• Free sub-users for team collaboration
• IRS-approved receipt scans

Shoeboxed is trusted by over 1 million businesses and has received high ratings on platforms like Capterra and G2 Crowd. If you're looking for a reliable and efficient way to manage your receipts and expenses, give Shoeboxed a try!

Wrapping It Up

Choosing the right accounting software can make a huge difference for consultants. It helps keep track of money, saves time, and makes running a business easier. Whether you're a solo consultant or part of a big firm, there's a software out there that fits your needs. From QuickBooks Online to FreshBooks, each option has its own perks. Take your time to figure out what features are most important to you, and don't be afraid to try out a few before making a decision. With the right tools, managing your finances can be a breeze!