Finding the Right Bookkeeping Software for Independent Contractors

As a self-employed independent contractor, managing finances can often feel overwhelming, especially when it comes to Bookkeeping. If you’re operating as an LLC taxed as an S-Corporation and primarily receive 1099 income, you may be looking for a straightforward solution that doesn’t involve the complexities of traditional Accounting Software.

The Need for Simplicity

In my case, I offer healthcare services and handle payroll for myself through Gusto. My Bookkeeping needs are quite simple: I primarily deal with a handful of business expenses and monthly 1099 payments from the facilities I contract with. Given this uncomplicated financial landscape, using comprehensive tools like QuickBooks can simply be overkill. QuickBooks offers far more features than I require, and at $35 a month for their Simple Start plan, it feels like an unnecessary expense for someone with my needs.

What to Consider in Bookkeeping Software

When searching for the right bookkeeping software, I have a few key criteria in mind:

1. Affordability: I’m looking for an option that won’t break the bank, ideally much less than the monthly fee of QuickBooks.
2. User-Friendly Interface: The software should be intuitive and easy to navigate.
3. Mobile Accessibility: Since I prefer managing finances on the go, it’s essential that the software has a fully functional iOS app.
4. Automatic Transaction Syncing: The ability to link my bank and credit card accounts for automatic transaction imports is a must. This feature would save time and help streamline my bookkeeping process.

Exploring Options: Wave vs. Zoho Books

Currently, I am evaluating two popular Accounting platforms: Wave and Zoho Books. Both options offer the simplicity I’m looking for, but they have different features that might cater to my specific needs.

• Wave: This is a free Accounting Software that remains popular among freelancers and independent contractors. It provides the essentials like expense tracking, invoicing (though I won’t need that), and financial reporting. For someone like me who doesn’t require extensive features, it could be a perfect fit.

• Zoho Books: While Zoho Books is a paid service, it offers a comprehensive suite of features, including automated workflows and better integration options. However, I’m cautious about whether I need the full breadth of what Zoho Books provides compared to my modest requirements.

Conclusion

Finding the right bookkeeping software