If you’re a 1099 contractor, managing your finances can be a daunting task. Juggling multiple clients, invoices, and expenses can be overwhelming, especially if you’re not a financial expert. Fortunately, there are many accounting software options available to help you keep track of your finances and streamline your business operations. In this article, we’ll take a look at the best accounting software for 1099 contractors.
QuickBooks Self-Employed
Overview
QuickBooks Self-Employed is a popular option for 1099 contractors because it’s affordable, easy to use, and specifically designed for self-employed individuals. It allows you to track your income, expenses, and mileage, and integrates with popular tax software like TurboTax. You can also send invoices and accept payments directly through the platform.
Key Features
- Track income and expenses
- Track mileage
- Send invoices and accept payments
- Integrates with TurboTax
Pros
QuickBooks Self-Employed is affordable and easy to use, making it a great option for small business owners and 1099 contractors. It also has a mobile app, so you can manage your finances on the go.
Cons
QuickBooks Self-Employed has limited features compared to other accounting software options, so it may not be the best choice for larger businesses or those with more complex financial needs.
FreshBooks
Overview
FreshBooks is a popular accounting software option for small business owners and 1099 contractors. It allows you to track your time, expenses, and invoices in one place, and integrates with popular payment gateways. FreshBooks also has a mobile app, making it easy to manage your finances on the go.
Key Features
- Track time, expenses, and invoices
- Integrates with payment gateways
- Mobile app
Pros
FreshBooks is easy to use and has a user-friendly interface. It also offers excellent customer support, with a dedicated team available to answer any questions you may have.
Cons
FreshBooks can be more expensive than other accounting software options, especially if you need to upgrade to the more advanced plans. It also has limited customizability, which may be an issue for some businesses.
Wave
Overview
Wave is a free accounting software option that’s popular among small business owners and 1099 contractors. It offers features like invoicing, expense tracking, and receipt scanning, and integrates with popular payment gateways. While Wave is free, it does charge fees for certain services like credit card processing.
Key Features
- Free accounting software
- Invoicing, expense tracking, and receipt scanning
- Integrates with payment gateways
Pros
Wave is free, making it a great option for small business owners and 1099 contractors who are on a tight budget. It’s also easy to use and has a user-friendly interface.
Cons
Wave has limited features compared to other accounting software options, so it may not be the best choice for larger businesses or those with more complex financial needs. It also charges fees for certain services like credit card processing.
Zoho Books
Overview
Zoho Books is a comprehensive accounting software option that’s designed for small businesses and 1099 contractors. It offers features like invoicing, expense tracking, inventory management, and project management, and integrates with popular payment gateways. Zoho Books also has a mobile app, making it easy to manage your finances on the go.
Key Features
- Invoicing, expense tracking, inventory management, and project management
- Integrates with payment gateways
- Mobile app
Pros
Zoho Books is a comprehensive accounting software option, making it a great choice for small businesses and 1099 contractors with more complex financial needs. It also offers excellent customer support, with a dedicated team available to answer any questions you may have.
Cons
Zoho Books can be more expensive than other accounting software options, especially if you need to upgrade to the more advanced plans. It also has a steeper learning curve, which may be an issue for some users.
Xero
Overview
Xero is a popular accounting software option that’s designed for small businesses and 1099 contractors. It offers features like invoicing, expense tracking, bank reconciliation, and project management, and integrates with popular payment gateways. Xero also has a mobile app, making it easy to manage your finances on the go.
Key Features
- Invoicing, expense tracking, bank reconciliation, and project management
- Integrates with payment gateways
- Mobile app
Pros
Xero is a comprehensive accounting software option that’s easy to use and has a user-friendly interface. It also offers excellent customer support, with a dedicated team available to answer any questions you may have.
Cons
Xero can be more expensive than other accounting software options, especially if you need to upgrade to the more advanced plans. It also has limited customizability, which may be an issue for some businesses.
Sage Business Cloud Accounting
Overview
Sage Business Cloud Accounting is a comprehensive accounting software option that’s designed for small businesses and 1099 contractors. It offers features like invoicing, expense tracking, inventory management, and project management, and integrates with popular payment gateways. Sage Business Cloud Accounting also has a mobile app, making it easy to manage your finances on the go.
Key Features
- Invoicing, expense tracking, inventory management, and project management
- Integrates with payment gateways
- Mobile app
Pros
Sage Business Cloud Accounting is a comprehensive accounting software option that’s easy to use and has a user-friendly interface. It also offers excellent customer support, with a dedicated team available to answer any questions you may have.
Cons
Sage Business Cloud Accounting can be more expensive than other accounting software options, especially if you need to upgrade to the more advanced plans. It also has limited customizability, which may be an issue for some businesses.
Frequently Asked Questions
Is accounting software necessary for 1099 contractors?
While it’s not necessary, accounting software can help 1099 contractors manage their finances more efficiently and effectively. It can also help ensure that you’re accurately tracking your income and expenses for tax purposes.
Can I use accounting software for personal finances?
Yes, you can use accounting software for personal finances. However, it’s important to choose a software option that’s appropriate for your needs and budget.
What’s the difference between cloud-based and desktop accounting software?
Cloud-based accounting software is hosted on the internet, while desktop accounting software is installed on your computer. Cloud-based software allows you to access your financial information from anywhere with an internet connection, while desktop software is limited to the computer it’s installed on.
What’s the best accounting software for small businesses?
The best accounting software for small businesses depends on your specific needs and budget. Some popular options include QuickBooks, FreshBooks, Wave, Zoho Books, and Xero.
Can I use accounting software to file my taxes?
Many accounting software options integrate with popular tax software like TurboTax, making it easy to file your taxes. However, it’s important to consult with a tax professional to ensure that you’re accurately reporting your income and expenses.
How much does accounting software cost?
The cost of accounting software varies depending on the software provider and the features you need. Some software options are free, while others can cost several hundred dollars per year.
Can I use accounting software if I’m not a financial expert?
Yes, accounting software is designed to be user-friendly and accessible for individuals who may not have a background in finance or accounting. However, it’s important to consult with a tax professional to ensure that you’re accurately reporting your income and expenses.