The importance of having good bookkeeping software can’t be overstated, and this is especially true if you’re doing everything yourself.
One of the main advantages of being a freelancer is that you answer to no one, but this also means you’re solely responsible for ensuring the smooth running of your business. No pressure!
Bookkeeping, the process of recording all the transactions in your business, is one area where it can be particularly difficult to keep track of everything all on your own, which is why good software can prove invaluable, simplifying your financial management and saving you precious time in the process.
There are lots of great options out there, though. So how does one know which to pick?
Well, hopefully we can help with that, as we’ve compiled a list of the three best bookkeeping software applications for freelancers based in the UK. We’ll go through the pros and cons of each, and see which one comes out on top.
Xero
This is one of the most popular and well-established options in the UK, among businesses and self-employed individuals alike. Some of the key features include:
- Real-time bank feed integration
- Customisable invoicing
- Detailed financial reports (profit and loss, etc.)
- Making Tax Digital (MTD) compliant
Pros
A big factor in Xero’s popularity is its commitment to integrating third-party apps (PayPal and HubSpot, for example). This allows the software to feel somewhat familiar, even if someone’s never used it before.
On top of this, Xero’s overall design is incredibly intuitive, and this further reassures new users, who actually get the sense they know what they’re doing.
Xero is also just a good all-round option, being suitable for businesses of every size, and in every kind of industry.
Cons
In spite of the intuitive design, there are some more advanced features which new users might struggle to make proper use of right away.
And then there’s the price. The premium plans offered by Xero are a little more costly than many of those offered by its competitors, and so this is something to take into consideration.
What’s the difference between the standard and premium plans? For starters, the standard plan puts a limit on the number of invoices you can send, as well as the number of bills you can enter.
You also miss out on several key features, such as the ability to track projects and use multiple currencies.
Essentially, the more expensive the plan, the more features you have access to and the less restrictions are placed on you.
FreeAgent
This is another leading bookkeeping software specifically designed for businesses, freelancers, and contractors based in the UK. Its key features include:
- Self-Assessment and tax calculation
- Project management (track time and expenses, etc.)
- Real-time bank feeds
- MTD compliant
Pros
The main advantage of using FreeAgent as a freelancer is that it boasts features which are specially tailored for people like yourself. A prime example of this is the project management tool, which is ideal for those who bill by the hour (like most freelancers!).
Pricing is also inclusive, meaning you are able to have unlimited users, clients, and projects. It’s a fixed price at £14.50/month for the first six months, and £29/month thereafter.
Cons
FreeAgent is obviously less equipped to handle larger or more complex businesses, but this shouldn’t really be a concern if you’re self-employed.
There are also limited integration options in comparison to software like Xero.
Pandle
Last but not least, there’s Pandle, which offers free bookkeeping software for freelancers and business owners. What are some of the key features?
- Send quotes and invoices
- Automated payment reminders
- Bank reconciliation
- Accept invoice payments online
- Mobile app
- Business reports
- Multiple currencies
- MTD compliant
Pros
First of all, ease of use is a priority, with Pandle having been built to be used by pretty much anyone. It even has safeguards in place to help users minimise the risk of making mistakes in their bookkeeping – so even if you think you’re rubbish when it comes to tech stuff, you can rest assured you’ll be fine.
If you do find you need assistance, though, you’ll have access to a support team of specialist bookkeepers.
Another big thing is that it saves you time by automating a lot of the more boring and usually lengthy processes.
In addition, Pandle includes features to assist you in working with customers and suppliers more efficiently, and these are all on top of the standard banking, accounting, invoicing, and reporting tools.
What about pricing? Well, as previously mentioned, the base version is totally free, but even the paid tier (Pandle Pro) is still reasonably priced at £5 + VAT per month. This makes Pandle a more viable option for freelancers than a lot of the other ones on the market.
What’s our verdict?
Xero is an excellent one-size-fits-all option, with its real-time financial insights making it a top choice for businesses looking to streamline their bookkeeping.
FreeAgent, on the other hand, is a great choice for freelancers specifically, offering a straightforward tool that simplifies self-employment tax, as well as project tracking.
All in all, though, it must be said that Pandle offers the most comprehensive package at the best price point. It’s not just an affordable alternative; it’s a top-quality service, and the perfect choice for any freelancer who wants to finally take control of their accounts (but without breaking the bank).
Head over to our information hub for more guides, news and advice on navigating life as a professional freelancer, from finance to tech and more.
