Published February 26, 2026 · 18 min read
QuickBooks Self-Employed costs $15 per month. FreshBooks starts at $19 per month. Xero's starter plan runs $15 per month. For a freelancer earning $50,000 per year, that is $180 to $228 annually just to track your income and expenses. When you are already managing irregular income, chasing late invoices, and setting aside money for quarterly taxes, the last thing you need is another recurring subscription eating into your margins.
Here is what most freelancers do not realize: there are genuinely free accounting tools in 2026 that handle everything a solo business needs. Wave offers unlimited invoicing and full double-entry bookkeeping for free. ZipBooks provides automatic bank imports and financial reports at no cost. GnuCash, the open-source veteran, gives you desktop accounting software with zero ongoing fees. These are not 14-day trials or feature-stripped demos. They are permanent free plans that cover invoicing, expense tracking, reporting, and tax preparation.
This guide covers the 10 best free accounting software options for freelancers in 2026. We evaluate each tool on invoicing, expense tracking, bank connectivity, tax features, reporting, and ease of use. By the end, you will know exactly which free accounting tool fits your freelance business and how to set up your books properly from day one.
These platforms offer comprehensive accounting functionality on their free tiers. Invoicing, expense tracking, bank connections, and financial reporting are all included. For most freelancers, these free plans cover everything you need to run your business finances professionally.
What it does: A complete accounting platform with double-entry bookkeeping, unlimited invoicing, expense tracking, receipt scanning, bank and credit card connections, financial reporting (profit and loss, balance sheet, cash flow), and sales tax tracking. Supports multiple businesses under one account.
Free tier includes: Unlimited invoicing, unlimited expense tracking, unlimited receipt scanning, unlimited bank and credit card connections, financial reports (profit and loss, balance sheet, account transactions, aged receivables), sales tax tracking, and multi-currency support.
Why freelancers love it: Wave is the gold standard for free accounting software because it offers features that QuickBooks and FreshBooks charge $15 to $19 per month for. The invoicing is polished and professional, with customizable templates, automatic payment reminders, and the ability to accept credit card payments directly on invoices (for a processing fee). The receipt scanning app lets you photograph receipts on the go and automatically match them to transactions. And the reporting suite gives you the exact reports your accountant needs at tax time.
Best for: Freelancers who want a complete, professional accounting system with no limitations on core features.
Try Wave FreeWhat it does: A modern accounting platform with invoicing, expense tracking, time tracking, financial reporting, and a unique business health scoring system called ZipBooks Intelligence. Automatically categorizes transactions and provides insights about your financial health.
Free tier includes: Unlimited invoicing, single bank connection, basic reporting, time tracking, and the ZipBooks Intelligence score that rates your invoicing speed, expense tracking consistency, and overall financial health on a 0-100 scale.
Why freelancers love it: ZipBooks makes accounting feel less like a chore and more like a game. The Intelligence score gives you a simple number that represents how well you are managing your finances. When you send invoices promptly, categorize expenses regularly, and maintain healthy cash flow, your score goes up. It is a surprisingly effective motivator for freelancers who tend to procrastinate on bookkeeping. The auto-categorization of bank transactions saves hours of manual data entry.
Best for: Freelancers who want automated categorization and a gamified approach to staying on top of their books.
Try ZipBooks FreeWhat it does: A desktop-based, open-source accounting application with full double-entry bookkeeping, accounts receivable and payable, invoicing, scheduled transactions, financial reporting, and multi-currency support. Available for Windows, Mac, and Linux.
Free tier includes: Everything. GnuCash is 100% free and open source. All features, no user limits, no transaction limits. Your data is stored locally on your computer, giving you complete control over your financial information.
Why freelancers love it: GnuCash has been around since 1998 and is trusted by millions of users worldwide. It follows proper accounting principles with a full chart of accounts, and it can generate every financial report a professional accountant would expect. Because it runs locally, there are no privacy concerns about your financial data sitting on someone else's servers. The scheduled transaction feature is perfect for tracking recurring income and expenses like monthly retainer payments or software subscriptions.
Best for: Freelancers who want powerful desktop accounting software with complete data privacy and no cloud dependency.
Download GnuCashWhat it does: A free, open-source online accounting software designed for small businesses and freelancers. Includes invoicing, expense tracking, bill management, bank connections, financial reporting, and a module marketplace for extending functionality. Can be self-hosted or used through their cloud platform.
Free tier includes: Invoicing, bill management, expense tracking, bank connections via Plaid, financial reports (profit and loss, balance sheet, income summary, expense summary), customer and vendor management, and a dashboard with cash flow overview.
Why freelancers love it: Akaunting gives you a modern, web-based accounting experience without the subscription fees. The interface looks and feels like a premium SaaS product. The module marketplace lets you add features like inventory management, payroll, and project tracking as your business grows. Self-hosting means your data stays on your own server, and the cloud option gives you accessibility from anywhere. It is the rare accounting tool that manages to be both powerful and approachable.
Best for: Tech-savvy freelancers who want a modern web-based accounting tool with self-hosting options.
Try Akaunting FreeSpunkArt has 300+ free tools for freelancers including invoice generators, expense trackers, profit calculators, and tax estimators. No signup required.
Explore All Free Tools Get Exclusive AccessNot every freelancer needs a full accounting suite. Sometimes you just need to send invoices, track what comes in, and know how much to set aside for taxes. These lighter tools get the job done without the complexity of traditional accounting software.
What it does: An all-in-one freelance management platform with proposals, contracts, invoicing, time tracking, expense tracking, and tax preparation. Designed specifically for freelancers, not adapted from small business software. Includes automatic estimated tax calculations and a dedicated tax dashboard.
Free tier includes: Up to 5 active clients, unlimited invoices, basic expense tracking, time tracking, and access to the tax preparation dashboard that calculates your estimated quarterly payments based on your income.
Why freelancers love it: Bonsai was built from the ground up for freelancers, and it shows. The workflow from proposal to contract to invoice to payment is seamless. The tax dashboard is particularly valuable because it automatically calculates your estimated quarterly tax payments based on your year-to-date income, which eliminates the guesswork that causes most freelancers to either underpay (and face penalties) or overpay (and lose cash flow). If you manage fewer than 5 clients at a time, the free tier covers your entire freelance workflow.
Best for: Freelancers with 5 or fewer active clients who want an all-in-one proposal-to-payment workflow.
Try Bonsai FreeWhat it does: A browser-based invoice generator that creates professional, customizable invoices in seconds. Add your logo, client details, line items, tax rates, and payment terms. Download as PDF or share via link. Data stays in your browser for maximum privacy.
Free tier: Completely free, unlimited invoices, no account required.
Why freelancers love it: When you need to send an invoice right now and do not want to sign up for anything, this tool is the fastest path from "client owes me money" to "professional invoice sent." It generates clean, well-formatted invoices that look like they came from expensive accounting software. Perfect for freelancers who handle their own invoicing but do not need a full accounting system.
Try It Free on SpunkArtWhat it does: A mobile-first accounting app designed for freelancers and gig workers. Automatically tracks mileage, expenses, income, and tax deductions in real time. Connects to your bank accounts and categorizes transactions automatically. Provides real-time tax estimates so you always know what you owe.
Free tier includes: Automatic expense tracking, income tracking, mileage tracking (GPS-based), basic tax estimates, and bank account connections.
Why freelancers love it: Hurdlr runs quietly in the background on your phone, tracking your mileage automatically and categorizing your transactions as they happen. For freelancers who drive to client sites, the automatic mileage tracking alone can save thousands in tax deductions. The real-time tax estimate updates throughout the year, so you never face a surprise tax bill. It is the accounting tool for freelancers who hate accounting.
Best for: Freelancers and gig workers who want automated expense and mileage tracking from their phone.
Try Hurdlr FreeThese tools solve specific accounting problems exceptionally well. Use them alongside a primary accounting tool or as standalone solutions for specific workflows.
What it does: Calculates your true freelance profit after taxes, expenses, health insurance, retirement contributions, and self-employment tax. Input your gross income and expenses, and it shows your real take-home pay, effective tax rate, and how much to set aside for quarterly estimated payments.
Why it matters for freelancers: Most freelancers know their gross income but have no idea what their actual take-home pay is after all obligations. This calculator gives you a realistic picture of your finances so you can set your rates appropriately and avoid the common trap of spending money that is already owed to the IRS.
Try It Free on SpunkArtWhat it does: Extracts data from receipts, invoices, and bills using optical character recognition. Photograph a receipt, and Dext pulls out the vendor, date, amount, tax, and category automatically. Exports to major accounting software including Wave, Xero, and QuickBooks.
Free tier includes: Up to 20 documents per month, automatic data extraction, cloud storage for receipts, and export to CSV.
Why freelancers love it: The shoebox problem is real. Every freelancer has a collection of crumpled receipts that they plan to organize "eventually." Dext solves this by letting you photograph receipts the moment you get them. The OCR technology is remarkably accurate, pulling the exact amount, date, and vendor from even faded or crumpled receipts. At tax time, you have a clean, organized digital archive of every business expense instead of a shoebox full of paper.
Best for: Freelancers who accumulate physical receipts and need a fast way to digitize and organize them.
Try Dext FreeWhat it does: Calculates the hourly or project rate you need to charge to hit your income goals after accounting for taxes, expenses, non-billable hours, vacation days, sick days, and business costs. Shows you the minimum rate needed to match a specific salary equivalent.
Why it matters for accounting: Pricing is the most important financial decision a freelancer makes, and most freelancers underprice their services because they do not account for self-employment tax (15.3%), health insurance, retirement savings, non-billable hours (typically 30-40% of your time), and business expenses. This calculator ensures your rates cover all your real costs.
Try It Free on SpunkArt| Software | Invoicing | Expense Tracking | Bank Connect | Reports | Tax Features |
|---|---|---|---|---|---|
| Wave | Unlimited | Yes | Yes | Full Suite | Sales Tax |
| ZipBooks | Unlimited | Yes | 1 Account | Basic | No |
| GnuCash | Yes | Yes | Import Only | Full Suite | No |
| Akaunting | Yes | Yes | Yes (Plaid) | Full Suite | Tax Rates |
| Bonsai | Unlimited | Basic | No | Basic | Quarterly Est. |
| Hurdlr | No | Auto | Yes | Basic | Real-time Est. |
| Dext | No | Receipt OCR | No | No | No |
Getting your accounting right from the start saves hours of cleanup later and potentially thousands in tax savings. Follow these steps in order:
Set aside 30% of every payment you receive into a separate savings account for taxes. This covers federal income tax (10-37% depending on your bracket), self-employment tax (15.3% on the first $168,600 of net earnings in 2026), and state income tax (varies by state). The 30% rule is a safe estimate for most freelancers earning $40,000 to $150,000 per year. If your income is higher, consider setting aside 35-40%. The money sits in a high-yield savings account earning interest until quarterly estimated payments are due (April 15, June 15, September 15, January 15).
Freelancers are required to pay estimated taxes quarterly if they expect to owe $1,000 or more in federal taxes for the year. Missing these payments results in underpayment penalties. Here is how to handle quarterly taxes:
The simplest method is the safe harbor rule: pay 100% of last year's total tax liability divided by four (110% if your adjusted gross income exceeds $150,000). This guarantees no underpayment penalty regardless of how much you earn this year. Your accounting software or a tax calculator can determine this amount from your previous year's tax return.
The more precise method is to calculate your actual tax liability each quarter based on year-to-date income. This is better for freelancers whose income varies significantly from year to year, as it prevents overpaying if your income drops.
Tracking these deductions in your accounting software reduces your taxable income and puts real money back in your pocket. Every dollar of deductions saves you roughly 30 cents in taxes (federal income tax plus self-employment tax).
If you use a dedicated space in your home exclusively for work, you can deduct a portion of your rent or mortgage interest, utilities, internet, and renter's or homeowner's insurance. The simplified method allows $5 per square foot up to 300 square feet ($1,500 maximum). The actual expense method requires calculating the percentage of your home used for business and applying that to your housing costs. Most freelancers use the simplified method because it is easier and requires less documentation.
Every software subscription you use for your freelance business is deductible: design tools, project management apps, cloud storage, website hosting, domain names, email marketing platforms, accounting software (even the paid ones), and any SaaS product used for business. Track these in your accounting software as they recur monthly or annually.
Online courses, books, conferences, workshops, and certifications related to your freelance work are deductible. This includes platforms like Udemy, Coursera, LinkedIn Learning, and industry-specific training. If a course helps you do your current work better or expand your service offerings, it qualifies.
Self-employed individuals can deduct 100% of their health insurance premiums (medical, dental, and vision) for themselves, their spouse, and dependents. This is an "above the line" deduction, meaning it reduces your adjusted gross income directly. For a freelancer paying $500 per month for health insurance, this deduction alone saves approximately $1,800 per year in taxes.
Contributions to a SEP-IRA (up to 25% of net earnings, maximum $69,000 in 2026), Solo 401(k) (up to $23,000 employee contribution plus 25% of net earnings as employer contribution), or Traditional IRA ($7,000 per year, $8,000 if over 50) are deductible. These reduce your taxable income now and grow tax-deferred until retirement. A freelancer earning $100,000 who contributes $20,000 to a SEP-IRA saves approximately $6,000 in taxes for the year.
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