Best Bookkeeping Software for Freelancers: Save Time & Stay Compliant

The number of freelancers worldwide has reached around 1.5 billion as workers seek more creative control and financial independence.

While freelancing comes with many benefits, it means taking responsibility for your business finances. Contractors must stay on top of invoicing, expenses, tax returns, and more on their own.

Many freelancers turn to software like QuickBooks and Xero to manage these tasks. The challenge is that these platforms are designed for businesses and tend to be too costly and complex for individuals.

What’s more, these solutions don’t always account for remote workers handling multiple clients across various locations — all with their own unique requirements.

Deel’s all-in-one freelance accounting software enables you to consolidate your processes and increase efficiency no matter which companies you work for. Here’s a closer look at the benefits for contractors.

Automate your invoice process

Deel’s Invoice Generator automates the creation, sending, and storage of invoices to simplify the process. This enables you to develop a smooth financial workflow, lightening your administrative burden and freeing you up to focus on client assignments.

It completely eliminates the need to manually create invoices for each project. This time-saving automation lets you focus on your core work rather than administrative tasks or creating new invoices every time you need to request payment from a client.

Our platform also helps you make the right impression. Instead of creating documents in Word, you can easily generate invoices by adding your job breakdown and client information. The tool ensures that your invoices look polished and adhere to industry standards, projecting a level of professionalism that reflects positively on your business.

Once your invoice is generated, you can send it to anyone, even clients you collaborate with outside of the Deel platform. This flexibility ensures that all your clients, regardless of their platform preference, can seamlessly receive and process your invoices.

Deel also allows you to store all your invoices in one secure yet easily accessible place. This not only keeps your sensitive financial information safe but also simplifies the invoicing process for repeat clients. Better yet, when it comes time to file taxes for freelancing, your financial records are already organized and ready to be turned into reports and returns.

See also: How to Invoice as an Independent Contractor [+ Template]

Manage expenses in one place

Deel's Expense Tracker tool provides you with a centralized solution for handling all work-related expenses, including invoices, transactions, tax forms, and business expenses.

Simply upload your receipts, categorize expenditures, and allocate them to specific clients for streamlined reimbursement tracking. This tool not only saves valuable time on year-end bookkeeping but also increases visibility into your spending, ensuring no expense goes overlooked.

As an independent contractor, Deel’s support with tracking and managing expenses can be invaluable. Our Expense Tracker prevents you from overlooking important details or making costly mistakes by ensuring precise financial reporting. Not only does this help you maintain compliance, but it also helps you spot eligible tax deductions to help you retain more of your earnings.

Moreover, a centralized system for expense tracking gives you better oversight of your business activities. This makes it easier to demonstrate fiscal responsibility to clients and potential partners or compliance in case of a government audit.

See also: How to Add an Expense to a Contract

Track income with the Accounting feature

In the Deel dashboard, you can find our Accounting feature, which provides an overview of your paid invoices and expenses. This helps you determine your net income for different periods and forecast future revenue.

Why worry about tracking cash flow? While you might not be running a business, being able to see how much you spend and budget for your business and personal expenses helps you plan for the future. What’s more, your bank accounts only tell you your current balance — not your pending transfers.

As a contractor, you can view the following details:

• Calculated net income: This is a general calculation of your taxable base. For country-specific tax calculations, please consult a tax advisor
• Calculated total income: This is based only on paid invoices and does not include unpaid invoices
• Calculated total expenses: Your total amount of expenses during the designated time period

You can customize your accounting report by changing the income currency and setting a custom period for more detailed data before downloading it as a PDF.

Get tax and filing support

Deel's Tax Advice Marketplace is a valuable resource designed exclusively for independent contractors seeking professional tax guidance. You can access support whether you’re dealing with international or local clients.

Contractors can easily access the Tax Advice tab on their home page within the Deel platform to connect with a qualified tax advisor in their country of residence. It's a straightforward process that provides personalized assistance tailored to your specific needs.

Without this expertise, navigating diverse tax laws can consume a lot of your working hours. You end up handling withholding tax, leveraging tax treaties, maintaining meticulous records, and managing currency exchange instead of focusing on your clients. This makes you more likely to make a mistake, leading to compliance issues or client disputes.

How to use Deel’s Tax Advice Marketplace

Residents of the following countries can find the Tax Advice Marketplace on their dashboard:

• Argentina
• Canada
• Colombia
• Germany
• Italy
• Mexico
• Philippines
• United Kingdom

Each tax advisor in the marketplace is thoroughly vetted. To be considered qualified, advisors must meet specific criteria:

• Signed Platform Services Agreement with Deel
• Certificate of Incorporation, Ownership Information, and proof of company registration (for legal entities)
• Completion of the Know Your Customer (KYC) process on the Deel platform
• Certificate of Good Standing from the supervisory authority
• Relevant qualifications enabling them to provide tax advice in their country of residence
• Insurance Certificate

Deel also offers a Tax Feature for those with US-based contracts. This feature allows contractors and client companies to easily generate and manage tax forms (and in some cases, help with tax filing).

When creating a contract, Deel collects the required information to generate the necessary IRS forms, such as Form W9 for US citizens, W-8BEN or W-8BEN-E for non-US contractors working under a US entity, and 1099s for tracking non-employee compensation.

See also: US Independent Contractor Hiring Forms: Essentials Guide

Simplify independent contractor bookkeeping with Deel

As an independent contractor, you operate similarly to a small business owner. You must maintain accurate financial records, keeping track of income statements, and thoroughly prepare for tax season.

Unlike a business owner, however, you don’t have the support of an HR and accounting team. You must handle everything alone.

Deel can provide the support you’re missing. Whether you’re a part-time freelancer or full-time contractor, you can benefit from our specialized contractor accounting services. With Deel’s all-in-one platform, you gain access to:

• Bookkeeping services
• Diverse payment methods
• Invoice generators
• Expense trackers
• Time tracking
• Tax advice
• Access to the Deel Card
• Support for a range of debit and credit card payments
• A mobile app

Want to spend more time on your freelance business and less on the books? Sign up for the Deel platform today to simplify your independent contractor bookkeeping.