Quick Overview
- 1#1: QuickBooks Online - Cloud-based accounting software offering invoicing, expense tracking, bank reconciliation, and tax reporting tailored for sole proprietors.
- 2#2: Wave - Free online accounting tool providing invoicing, receipt scanning, and financial reports ideal for cost-conscious sole proprietors.
- 3#3: FreshBooks - User-friendly invoicing and accounting software designed for freelancers and sole proprietors with time tracking and expense management.
- 4#4: Xero - Cloud accounting platform with bank feeds, invoicing, and multi-currency support suitable for growing sole proprietorships.
- 5#5: Zoho Books - Affordable online accounting solution featuring automation, inventory tracking, and integrations for small sole proprietor businesses.
- 6#6: ZipBooks - Free cloud-based accounting software with intelligent invoicing, time tracking, and profitability insights for sole proprietors.
- 7#7: FreeAgent - All-in-one accounting app for sole traders offering invoicing, expense capture, tax filing, and bank integration.
- 8#8: Manager - Free, unlimited desktop and cloud accounting software with full double-entry bookkeeping for sole proprietorships.
- 9#9: GnuCash - Free open-source desktop accounting program supporting double-entry bookkeeping and reports for personal and sole proprietor use.
- 10#10: Akaunting - Free open-source self-hosted accounting software with invoicing, expenses, and financial reporting for small businesses.
We selected and ranked these tools by evaluating core features (invoicing, tax readiness, etc.), software quality (stability, user experience), ease of use, and value, ensuring they align with the distinct needs of sole proprietors at various business stages.
Comparison Table
For sole proprietors, reliable accounting software simplifies managing finances, from tracking income to filing taxes. This comparison table details top tools like QuickBooks Online, Wave, FreshBooks, Xero, and Zoho Books, examining features, pricing, and ease of use to help readers identify the best fit for their unique business needs.
| # | Tool | Category | Overall | Features | Ease of Use | Value |
|---|---|---|---|---|---|---|
| 1 | QuickBooks Online Cloud-based accounting software offering invoicing, expense tracking, bank reconciliation, and tax reporting tailored for sole proprietors. | specialized | 9.6/10 | 9.8/10 | 9.2/10 | 9.0/10 |
| 2 | Wave Free online accounting tool providing invoicing, receipt scanning, and financial reports ideal for cost-conscious sole proprietors. | specialized | 9.2/10 | 8.7/10 | 9.6/10 | 9.8/10 |
| 3 | FreshBooks User-friendly invoicing and accounting software designed for freelancers and sole proprietors with time tracking and expense management. | specialized | 8.7/10 | 8.5/10 | 9.4/10 | 8.2/10 |
| 4 | Xero Cloud accounting platform with bank feeds, invoicing, and multi-currency support suitable for growing sole proprietorships. | specialized | 8.9/10 | 9.2/10 | 9.0/10 | 8.5/10 |
| 5 | Zoho Books Affordable online accounting solution featuring automation, inventory tracking, and integrations for small sole proprietor businesses. | specialized | 8.4/10 | 8.7/10 | 9.2/10 | 8.1/10 |
| 6 | ZipBooks Free cloud-based accounting software with intelligent invoicing, time tracking, and profitability insights for sole proprietors. | specialized | 8.5/10 | 8.0/10 | 9.2/10 | 9.5/10 |
| 7 | FreeAgent All-in-one accounting app for sole traders offering invoicing, expense capture, tax filing, and bank integration. | specialized | 8.4/10 | 8.7/10 | 9.0/10 | 7.9/10 |
| 8 | Manager Free, unlimited desktop and cloud accounting software with full double-entry bookkeeping for sole proprietorships. | specialized | 8.2/10 | 8.8/10 | 7.0/10 | 10/10 |
| 9 | GnuCash Free open-source desktop accounting program supporting double-entry bookkeeping and reports for personal and sole proprietor use. | specialized | 7.3/10 | 8.2/10 | 5.8/10 | 9.8/10 |
| 10 | Akaunting Free open-source self-hosted accounting software with invoicing, expenses, and financial reporting for small businesses. | specialized | 7.8/10 | 8.2/10 | 6.8/10 | 9.5/10 |
Cloud-based accounting software offering invoicing, expense tracking, bank reconciliation, and tax reporting tailored for sole proprietors.
Free online accounting tool providing invoicing, receipt scanning, and financial reports ideal for cost-conscious sole proprietors.
User-friendly invoicing and accounting software designed for freelancers and sole proprietors with time tracking and expense management.
Cloud accounting platform with bank feeds, invoicing, and multi-currency support suitable for growing sole proprietorships.
Affordable online accounting solution featuring automation, inventory tracking, and integrations for small sole proprietor businesses.
Free cloud-based accounting software with intelligent invoicing, time tracking, and profitability insights for sole proprietors.
All-in-one accounting app for sole traders offering invoicing, expense capture, tax filing, and bank integration.
Free, unlimited desktop and cloud accounting software with full double-entry bookkeeping for sole proprietorships.
Free open-source desktop accounting program supporting double-entry bookkeeping and reports for personal and sole proprietor use.
Free open-source self-hosted accounting software with invoicing, expenses, and financial reporting for small businesses.
QuickBooks Online
specializedCloud-based accounting software offering invoicing, expense tracking, bank reconciliation, and tax reporting tailored for sole proprietors.
Real-time customizable dashboards providing instant profit & loss insights and cash flow projections tailored for sole proprietorships
QuickBooks Online is a cloud-based accounting software from Intuit, ideal for sole proprietorships, offering comprehensive tools for invoicing, expense tracking, bank reconciliation, and financial reporting. It automates bookkeeping tasks like categorizing transactions and generating profit & loss statements, helping users stay compliant with taxes such as Schedule C. The mobile app enables on-the-go management, making it accessible for freelancers and small business owners without dedicated accounting staff.
Pros
- Automated bank feeds and transaction categorization for effortless reconciliation
- Robust tax tools including Schedule C reports and sales tax automation
- Seamless integrations with 750+ apps like PayPal, Shopify, and bank accounts
Cons
- Higher-tier plans required for advanced inventory and project tracking
- Subscription costs can add up for very basic sole prop needs
- Customer support varies in response time and quality
Best For
Sole proprietors and freelancers who need scalable, all-in-one accounting to handle invoicing, expenses, and taxes without hiring an accountant.
Pricing
Starts at $30/month (Simple Start) billed annually, up to $200/month (Advanced); includes 50% off for the first 3 months and a 30-day free trial.
Wave
specializedFree online accounting tool providing invoicing, receipt scanning, and financial reports ideal for cost-conscious sole proprietors.
100% free unlimited invoicing and accounting with no user or transaction limits
Wave is a cloud-based accounting software tailored for sole proprietors, freelancers, and small businesses, providing free tools for invoicing, expense tracking, receipt scanning, and basic bookkeeping. It connects to bank accounts for automatic transaction imports and reconciliation, helping users generate profit and loss statements and manage cash flow. While core features are unlimited and free, add-ons like payments and payroll incur fees.
Pros
- Completely free core accounting and unlimited invoicing
- Intuitive interface with mobile app for on-the-go access
- Seamless bank integration and automated categorization
Cons
- Limited advanced reporting and customization options
- Transaction fees for payment processing (2.9% + 30¢ per card charge)
- Payroll and advanced payroll available only in US/Canada
Best For
Sole proprietors and freelancers seeking a simple, cost-free solution for basic invoicing, expense tracking, and bookkeeping without complex needs.
Pricing
Free for accounting, invoicing, and receipts; payments at 2.9% + 30¢ per credit card transaction; payroll starts at $20/month + $6/employee in US/Canada.
FreshBooks
specializedUser-friendly invoicing and accounting software designed for freelancers and sole proprietors with time tracking and expense management.
Beautiful, customizable invoices with integrated online payments and client portals
FreshBooks is a cloud-based accounting platform tailored for freelancers, solopreneurs, and small service-based businesses, emphasizing invoicing, time tracking, and expense management. It provides essential accounting tools like profit and loss reports, expense categorization for tax prep, and bank reconciliation suitable for sole proprietorships. While not as robust for complex bookkeeping, its client-focused features streamline billing and payments effectively.
Pros
- Intuitive, beginner-friendly interface with drag-and-drop invoicing
- Seamless time tracking and project management for billable hours
- Strong mobile app and automated payment reminders/chasing
Cons
- Limited advanced reporting and no inventory/payroll support
- Client limits on lower plans restrict scaling
- Higher cost compared to basic bookkeeping alternatives
Best For
Service-based sole proprietors and freelancers who prioritize easy invoicing, client billing, and time tracking over full-scale accounting.
Pricing
Lite ($19/mo, 5 clients), Plus ($33/mo, 50 clients), Premium ($60/mo, unlimited clients); annual discounts and 30-day free trial available.
Xero
specializedCloud accounting platform with bank feeds, invoicing, and multi-currency support suitable for growing sole proprietorships.
Live bank feeds that automatically import and categorize transactions for effortless reconciliation
Xero is a cloud-based accounting software tailored for small businesses, including sole proprietorships, providing essential tools for invoicing, bank reconciliation, expense tracking, and financial reporting. It automates bank feeds for real-time transaction matching and supports inventory management, payroll, and project tracking. Ideal for users seeking scalability, it integrates with over 1,000 third-party apps to streamline workflows.
Pros
- Automatic bank feeds and reconciliation save significant time
- Unlimited users across all plans for collaboration
- Extensive integrations with apps like Stripe and QuickBooks alternatives
Cons
- Higher-tier plans required for advanced features like payroll
- No built-in time tracking (requires add-ons)
- Customer support limited to email/chat on basic plans
Best For
Sole proprietors with growing client bases needing robust invoicing, multi-currency support, and easy scalability.
Pricing
Starts at $15/month (Early plan: basic invoicing/reconciliation); Growing $42/month; Established $78/month (US pricing, annual discounts available).
Zoho Books
specializedAffordable online accounting solution featuring automation, inventory tracking, and integrations for small sole proprietor businesses.
Client portal for secure, self-service invoice payments and approvals
Zoho Books is a cloud-based accounting platform tailored for small businesses like sole proprietorships, offering invoicing, expense tracking, bank reconciliation, and basic financial reporting. It simplifies tax preparation with sales tax compliance and profit/loss statements, while supporting multi-currency transactions for growing operations. The software integrates seamlessly with other Zoho apps and third-party tools, making it scalable without overwhelming simplicity.
Pros
- Intuitive interface with quick setup for beginners
- Strong invoicing and payment reminders
- Mobile app for on-the-go expense tracking
Cons
- Advanced reporting locked behind higher plans
- Bank feed imports can occasionally lag
- Customer support slower for free tier users
Best For
Sole proprietors seeking affordable, user-friendly cloud accounting with robust invoicing and basic compliance features.
Pricing
Free plan for < $50K annual revenue (limited to 1,000 invoices/year); paid plans start at $20/month (Standard) up to $240/month (Ultimate).
ZipBooks
specializedFree cloud-based accounting software with intelligent invoicing, time tracking, and profitability insights for sole proprietors.
Free unlimited invoicing with automatic payment processing and professional designs
ZipBooks is a cloud-based accounting software tailored for small businesses and sole proprietors, providing tools for invoicing, expense tracking, time tracking, and basic bookkeeping. It stands out with a free plan offering unlimited invoices and payments, making it ideal for startups and freelancers managing simple finances. The platform emphasizes user-friendly design with customizable, professional invoices and essential reports for cash flow and profitability.
Pros
- Generous free plan with unlimited invoicing and payments
- Intuitive, modern interface that's easy for beginners
- Integrated time tracking and beautiful invoice customization
Cons
- Limited advanced reporting and analytics compared to full suites
- No built-in inventory or payroll management
- Fewer third-party integrations than top competitors
Best For
Sole proprietors and freelancers seeking affordable, straightforward invoicing and basic bookkeeping without steep learning curves.
Pricing
Free plan available; Starter at $17/month, Smarter at $37/month, Elite at $95/month (billed annually).
FreeAgent
specializedAll-in-one accounting app for sole traders offering invoicing, expense capture, tax filing, and bank integration.
Intelligent bank feed categorization that learns from user habits to automate transaction matching and reduce manual entry.
FreeAgent is a cloud-based accounting software tailored for UK sole traders, freelancers, and small businesses, offering tools for invoicing, expense tracking, VAT returns, and self-assessment tax calculations. It automates bank reconciliations, categorizes transactions intelligently, and ensures compliance with HMRC's Making Tax Digital requirements. The platform also includes project tracking and a mobile app for on-the-go management, making it suitable for sole proprietorships handling simple to moderately complex finances.
Pros
- Seamless integration with UK banks for automatic feeds and reconciliation
- HMRC-compliant VAT and tax tools with easy MTD submissions
- Intuitive interface and strong mobile app for freelancers
Cons
- Limited to UK regulations, not ideal for international sole proprietors
- Subscription pricing can feel high for basic sole trader needs
- Advanced features like payroll require higher-tier plans or add-ons
Best For
UK-based sole traders and freelancers who need compliant, user-friendly accounting with strong bank integration and tax automation.
Pricing
Starts at £19/month (billed annually) for the Single Self-Employed plan; higher tiers up to £39/month for teams or accountants.
Manager
specializedFree, unlimited desktop and cloud accounting software with full double-entry bookkeeping for sole proprietorships.
Unlimited free access to full professional-grade accounting features, including self-hosting for offline use and complete data ownership
Manager.io is a free, open-source accounting software designed for small businesses and sole proprietors, offering tools for invoicing, expense tracking, bank reconciliation, inventory management, and financial reporting. It supports both cloud-hosted and self-hosted (desktop) deployments, providing flexibility without any subscription costs or transaction limits. The platform emphasizes customization, allowing users to modify forms, reports, and workflows to fit specific needs like sales tax or GST compliance.
Pros
- Completely free with unlimited transactions, clients, and features
- Highly customizable reports, forms, and workflows
- Supports multi-currency, tax compliance, and self-hosting for data privacy
Cons
- Steep learning curve for advanced features
- Dated, functional interface lacking modern polish
- Limited integrations with third-party apps like payment processors
Best For
Cost-conscious sole proprietors needing robust, customizable accounting without ongoing fees or limits.
Pricing
100% free for cloud and self-hosted versions; no subscriptions, ads, or usage limits.
GnuCash
specializedFree open-source desktop accounting program supporting double-entry bookkeeping and reports for personal and sole proprietor use.
Full-featured double-entry accounting system that rivals paid software, available at zero cost
GnuCash is a free, open-source desktop accounting software that uses double-entry bookkeeping to manage personal finances and small business accounts, including income, expenses, assets, and liabilities. It supports invoicing, bill payment, budgeting, and generates detailed financial reports like profit and loss statements and balance sheets. Suitable for sole proprietors, it runs on Windows, macOS, and Linux without requiring internet connectivity.
Pros
- Completely free with no hidden costs or subscriptions
- Robust double-entry accounting with advanced reporting and multi-currency support
- Highly customizable for specific business needs without vendor lock-in
Cons
- Steep learning curve due to manual entry and traditional interface
- No automatic bank import or cloud synchronization features
- Dated user interface lacking modern automation and mobile apps
Best For
Tech-savvy sole proprietors who prefer desktop software, manual bookkeeping, and maximum control without recurring fees.
Pricing
Free (open-source, no cost for download or use)
Akaunting
specializedFree open-source self-hosted accounting software with invoicing, expenses, and financial reporting for small businesses.
100% free open-source model with unlimited invoicing, clients, and companies—no paid tiers required for core use
Akaunting is a free, open-source accounting software designed for small businesses, freelancers, and sole proprietorships, offering core features like invoicing, expense tracking, bank reconciliation, and financial reporting. It supports unlimited clients, invoices, and companies without restrictions, with self-hosting for complete data control. Users can extend functionality via a marketplace of apps, making it customizable for basic to moderate accounting needs.
Pros
- Completely free open-source version with no limits on usage or companies
- Modular app store for easy customization and extensions
- Strong privacy through self-hosting and multi-currency/tax support
Cons
- Self-hosting requires technical setup (PHP/MySQL/server knowledge)
- No native mobile app; relies on web interface
- Community support only for free version, with potential maintenance needs
Best For
Tech-savvy sole proprietors who prioritize cost-free, self-hosted accounting with full data control.
Pricing
Free self-hosted open-source version; optional cloud hosting starts at €5/user/month.
Conclusion
The reviewed sole proprietorship accounting software ranges from free tools to robust cloud solutions, each designed to meet unique business needs. At the top, QuickBooks Online leads with its comprehensive features, making it the top choice for many. Wave and FreshBooks, however, stand out as strong alternatives—Wave for its all-in-one free offering and FreshBooks for its user-friendly time tracking—ensuring there’s a fit for nearly every business.
Begin streamlining your financial tasks with QuickBooks Online to unlock automated tools, accurate reporting, and seamless business organization today.
Tools Reviewed
All tools were independently evaluated for this comparison