Best Accounting Software for Sole Proprietors in 2026
Short answer: QuickBooks Solopreneur is $20 a month at list price and covers unlimited invoices, receipts, and mileage for one owner, with no accountant access. Wave Starter is free for invoices and bookkeeping records, and Pro is $19 a month when bank import matters. Found is free for business checking, invoicing, and real-time tax estimates, and Found Plus is $35 a month for paying quarterly taxes from the account. FreshBooks Plus is $43 a month when a preparer needs access.
A sole proprietor's books are a Schedule C: income, expenses, miles, and a tax set-aside. Pay only for the parts you will use.
A sole proprietor should buy the cheapest tool that does four jobs: keep business money apart from personal money, capture receipts and miles, invoice clients, and show a Schedule C profit before the tax return. Most owners need less software than the marketing implies. Toolradar data: a one-person business has more free options than any other buyer, because 9 of the 268 accounting tools we track are free outright and 62 more are freemium.
This ranking is for single-owner businesses that report on Schedule C: freelancers, consultants, tradespeople, drivers, and online sellers with no employees. A single-member LLC taxed as a sole proprietor can use it too, and the LLC accounting guide covers member draws and multi-member files. A free-only shortlist is in the free accounting software guide, and the small-business accounting guide covers owners with staff. A personal budget belongs in the personal finance apps guide.
QuickBooks Solopreneur leads because it prices mileage, receipts, and invoices at one flat rate. Wave and Found lead the free end. Every other ledger is in the accounting catalog. How we ranked: these 10 were set beside the 268 accounting tools in the catalog for a one-person business. Prices were read on vendor sites on October 4, 2026.
Top Picks
Picked by editorial review, informed by G2 and Capterra review volume and rating and by media mentions, the signals behind our category rankings. How we rate
| Tool | Starting price | Rating | Best for |
|---|---|---|---|
| QuickBooks Solopreneur | From $20/mo | 4.4405 reviews | Sole proprietors who track miles and receipts and file Schedule C. |
| Wave | Free, Pro is $19/mo | 4.32,059 reviews | Owners who need invoices and a profit and loss at $0. |
| Found | Free, Plus is $35/mo | 4.56 reviews | Owners who want banking, invoices, and a tax set-aside in one account. |
| FreshBooks | From $23/mo on Lite | 4.55,507 reviews | Owners with a few clients who want mileage and invoices now and a preparer later. |
| Zoho Books | Free under $50,000 | 4.41,009 reviews | New sole proprietors earning under $50,000 who want an accountant seat at no cost. |
| Xero | From $27/mo on Early | 4.45,158 reviews | Owners whose accountant works in Xero and who invoice at low volume. |
| Keeper Tax | From $199/yr | n/a | Owners who want deductions found automatically and a professional to file Schedule C. |
| Lili | Free Core, Smart is $35/mo | n/a | Freelancers who want banking with tax savings and basic books. |
| Bonsai | From $19/user/mo yearly | 4.3101 reviews | Freelancers who sell with proposals and contracts and bill from one place. |
| Akaunting | Free self-hosted, cloud from $8/mo | 2.940 reviews | Technical owners who want to own their data and pay nothing for software. |
Sole proprietors who track miles and receipts and file Schedule C.
Watch out
50% introductory discount expires after 3 months, doubling your bill overnight
Owners who need invoices and a profit and loss at $0.
Wave's Starter tier is incredibly generous, offering unlimited invoicing and bookkeeping for free, which is rare in the market.
Owners who want banking, invoices, and a tax set-aside in one account.
Found offers a very generous free tier, making it highly accessible for new freelancers and small businesses.
Owners with a few clients who want mileage and invoices now and a preparer later.
FreshBooks' pricing is fair for small businesses, though it can become expensive as client numbers grow.
Watch out
Potential for add-on service costs
New sole proprietors earning under $50,000 who want an accountant seat at no cost.
Zoho Books is the best value in cloud accounting.
Watch out
Additional users cost $2.50/user/month on top of plan price
Owners whose accountant works in Xero and who invoice at low volume.
Watch out
Potential add-on costs for specific integrations
Owners who want deductions found automatically and a professional to file Schedule C.
Keeper Tax's pricing is fair for the value delivered, especially considering the inclusion of human accountant support.
Freelancers who want banking with tax savings and basic books.
Lili offers a generous free tier, 'Lili Core', providing essential banking features, which is excellent for new freelancers or very small businesses.
Freelancers who sell with proposals and contracts and bill from one place.
Bonsai's pricing is fair, especially for solo professionals or small teams.
Watch out
Elite tier requires 3 users minimum
Technical owners who want to own their data and pay nothing for software.
Akaunting's cloud pricing is quite expensive compared to many accounting software solutions, especially for small businesses.
What accounting software for a sole proprietor actually is
A sole proprietor has no separate legal entity for tax. Income and expenses flow to Schedule C on the owner's personal return. Accounting software for that owner has a narrow job: tag every dollar in and out as business income or a business expense, keep the receipt and the mileage log behind each deduction, bill clients, and show a profit figure the owner can set tax against.
Double-entry books, payroll, and equity accounts are optional extras. A sole proprietor with a few clients and one bank account can run a full year on a tool that does less than a company ledger.
The ten products below fall into three groups. QuickBooks, Wave, FreshBooks, Zoho Books, Xero, and Akaunting are bookkeeping tools. Found and Lili are business bank accounts with accounting features attached, and Keeper Tax tracks deductions and files the return. Bonsai runs the client side: proposals, contracts, and invoices.
If you only need to send bills, the invoicing software guide is shorter. If a bookkeeper will do the work, read the bookkeeping software guide.
Why the free plan costs you in March
A free plan that cannot log miles or capture receipts moves that work to the spreadsheet you build before filing. QuickBooks' free tier allows 2 invoices, 2 receipts, and 5 mileage trips a month, and 1 contractor. The $20 tier removes those caps. Wave Starter is free, and bank import is a Pro feature at $19 a month. Zoho Books Free ends when annual revenue passes $50,000, and bank feeds start on Standard.
Dates and rates also move. The IRS business mileage rate for 2026 is 72.5 cents per mile through June 30 and 76 cents per mile from July 1, so a log that applies one rate to the whole year is wrong for half of it. The IRS says sole proprietors generally have to make estimated tax payments if they expect to owe $1,000 or more when the return is filed. The 2026 payments are due April 15, June 15, September 15, and January 15, 2027.
The IRS also puts self-employment tax at 15.3%, made up of 12.4% social security and 2.9% Medicare, once net earnings reach $400. Found says it estimates quarterly taxes and sets money aside when you get paid. Keeper's Premium plan includes paying quarterly taxes. Check QuickBooks vs Wave before you commit a year of records to a free file.
Key Features to Look For
Mileage at the right IRS rate (Essential)
The IRS business rate for 2026 is 72.5 cents per mile through June 30 and 76 cents from July 1. QuickBooks Solopreneur includes unlimited mileage, FreshBooks lists mileage tracking on every plan, and Found lists it as a tax feature. Check that the app prices each trip at the rate for its date.
Receipt capture with a cap you can count (Essential)
QuickBooks Solopreneur includes unlimited receipts, and its free tier allows 2 a month. Wave Pro captures unlimited receipts in the mobile app. Found and Keeper scan receipts, and Zoho Books Free allows 50 scans a month.
A tax set-aside that follows the money (Essential)
Found estimates quarterly taxes and sets money aside when you get paid. Lili Pro allocates tax savings. Keeper Premium includes paying quarterly taxes. A tool that only reports profit leaves the set-aside to you.
Business and personal kept apart (Essential)
QuickBooks says it learns how you categorize income and expenses and matches transactions to those patterns. Found and Lili are business checking accounts, issued through Lead Bank and Sunrise Banks, N.A., both Member FDIC, so the separation starts at the bank.
Invoicing that does not cap you early (Important)
QuickBooks' free tier stops at 2 invoices a month, and the $20 tier is unlimited. Wave Starter and Found include unlimited invoicing. FreshBooks Lite stops at 5 billable clients, and Xero Early stops at 20 invoices.
An accountant seat for when you hire a preparer (Important)
QuickBooks Solopreneur lists no accountant access, and Simple Start at $38 a month includes it. FreshBooks Plus adds accountant access. Zoho Books Free and Akaunting Standard Cloud each include 1 accountant. Keeper's plans have a tax pro review and sign the return.
Contractor forms (Nice to have)
QuickBooks Solopreneur manages 3 contractors. Found includes W-9 and 1099 e-filing on the free plan. Xero includes W-9 and 1099 management on every plan, and Zoho Books adds 1099 e-filing on Standard.
A price that survives the promo (Nice to have)
QuickBooks shows 50% off for 3 months. Xero shows 80% off for 3 months. Lili Pro is $9 for the first 3 months, Wave Pro is $9.50, and FreshBooks Lite is advertised at $1 a month for a year. Budget the list price.
What to settle before you sign up
If you drive for work, scan receipts, and invoice a few clients, price QuickBooks Solopreneur at $20 a month. Accept that it has no accountant access.
If invoices and a profit and loss are enough, start on Wave Starter at $0, and add Pro at $19 a month only when bank import matters.
If you want the bank, a tax estimate, and invoices in one place, open Found. Paying quarterly taxes from the account needs Found Plus at $35 a month and a Schedule C.
If a preparer needs to work in your books, price FreshBooks Plus at $43 a month or QuickBooks Simple Start at $38.
If you want a tax professional to file and sign, price Keeper Standard at $199 a year, and Premium at $399 a year when quarterly payments and audit protection matter.
If you want to own the software, Akaunting's self-hosted Standard plan is free, and Standard Cloud is $8 a month billed yearly.
Evaluation Checklist
On QuickBooks, read the tier on the order. The free tier allows 2 invoices a month and the $20 tier is unlimited.
On Wave, decide Starter or Pro before you connect a bank. Bank import is a Pro feature.
On Found, confirm that paying taxes from the account needs Plus and a Schedule C.
On FreshBooks, count billable clients. Lite stops at 5 and Plus at 50.
On Zoho Books, compare last year's revenue with the $50,000 free-plan ceiling.
On Xero, count monthly invoices and bills against Early's limits of 20 and 5.
On Keeper, confirm whether you are buying bookkeeping only at $20 a month or a yearly filing plan.
In every app, enter one test trip dated in June and one dated in August, and check the rate each one gets.
Pricing Overview
Free to start
Wave Starter, Found, Zoho Books Free under $50,000 of revenue, Akaunting self-hosted, and QuickBooks' free tier for a handful of invoices a month.
$0
One-owner paid ledger
QuickBooks Solopreneur when miles and receipts matter, and FreshBooks Plus when a preparer needs access.
$20 to $43 a month
Business bank with books
Found Plus when you want to pay quarterly taxes from the account, and Lili Smart when the books should live in the bank.
$35 a month
Tax filing help
Keeper Standard when a pro should file Schedule C, and Premium when quarterly payments and audit protection matter.
$199 to $399 a year
Client work platform
Bonsai Essentials when proposals, contracts, and invoices are the sale and a ledger sits behind it.
Per user, monthly
Pricing Comparison
| Tool | Published price | What that price buys | Billing |
|---|---|---|---|
$20/mo | Unlimited invoices, receipts, and mileage, 3 contractors, no accountant access. The free tier allows 2 invoices a month. Simple Start is $38/mo. | Monthly | |
Wave | $0 Starter | Unlimited invoices, bills, and bookkeeping records. Pro is $19/mo, or $190 a year, for bank import and receipt capture. | Per business, monthly or yearly |
Found | $0 | Business checking, invoicing, receipt scanning, real-time tax estimates. Plus is $35/mo, or $315 a year. Pro is $80/mo. | Monthly or yearly |
$23/mo Lite | 5 billable clients and mileage. Plus is $43/mo for 50 clients with accountant access. Premium is $70/mo. | Per account, monthly | |
$0 Free | 1 user plus 1 accountant under $50,000 of revenue. Standard is $15/mo yearly, or $20 monthly, and adds bank feeds. | Per organization | |
Xero | $27/mo Early | 20 invoices, 5 bills, bank reconciliation, W-9 and 1099 tools. Growing is $59/mo. | Per organization, monthly |
$199/yr Standard | Federal return plus up to 2 state returns, signed by a tax pro. Premium is $399/yr. Bookkeeping only is $20/mo. | Yearly, or monthly for bookkeeping | |
Lili | $0 Core | Pro is $15/mo for tax categories and savings. Smart is $35/mo for accounting software and unlimited invoices. | Monthly |
Bonsai | $19/user/mo yearly, Essentials | Invoices, contracts, proposals, and income and expense tracking. Monthly Essentials is $25. Premium is $29 yearly. | Per user |
Akaunting | $8/mo yearly, Standard Cloud | 1 company, 1 user plus 1 accountant, 1,000 invoices. Monthly is $12. Self-hosted Standard is free. | Per company |
Vendor sites were read on October 4, 2026. QuickBooks shows 50% off for 3 months on its paid plans. A new US Xero customer can take 80% off the base plan for 3 months. FreshBooks shows Lite at $1 a month for one year and 80% off Plus and Premium for 3 months. Lili shows Pro at $9 and Smart at $21 for the first 3 months, and Wave shows Pro at $9.50 for 3 months. No end dates are shown for those offers, and the list price is what renews.
Mistakes to Avoid
- ×
Using the free tier as the year's records. QuickBooks' free tier allows 2 invoices, 2 receipts, and 5 mileage trips a month, which an active month passes.
- ×
Applying one mileage rate to the whole year. The IRS business rate was 72.5 cents per mile through June 30, 2026 and is 76 cents from July 1.
- ×
Buying a plan with no accountant access and then hiring a preparer. QuickBooks Solopreneur lists none, and FreshBooks Lite lacks it.
- ×
Treating the tax estimate as a payment. Found estimates and sets money aside on the free plan, paying from the account needs Plus and a Schedule C, and Keeper's Premium includes paying quarterly taxes.
- ×
Mixing personal spending into the business feed. QuickBooks learns your categories from what you do, so personal charges teach it the wrong pattern. A business account at Found or Lili makes the split at the bank.
- ×
Paying for a bank when you wanted a ledger. Lili's accounting software starts on Smart at $35 and Found Plus is $35, so compare both with Wave Starter at $0 or QuickBooks at $20.
Expert Tips
- →
Test two trips in any mileage app, one dated June and one dated August, and check the rate each gets. The IRS rate moved on July 1, 2026.
- →
Know the IRS dates. The IRS lists the 2026 estimated payments as April 15, June 15, September 15, and January 15, 2027. Pick the tool that shows a running set-aside so the January figure is not a surprise.
- →
Start free and pay for the missing feature. Wave Starter and Found cost $0. Move to QuickBooks at $20 when miles and receipts matter, and read QuickBooks vs Wave for the tradeoffs.
- →
Open a business bank account before choosing software. Bank feeds in QuickBooks, Wave Pro, and Zoho Standard work better when every transaction in the feed is business. A single-member LLC should also read the LLC accounting guide.
- →
Ask your preparer first. If the preparer needs access, price FreshBooks Plus at $43 or QuickBooks Simple Start at $38 instead of Solopreneur. See FreshBooks vs Wave.
- →
Budget the list price. QuickBooks, Xero, and Lili show 3-month promos, and FreshBooks Lite is $1 a month for a year. The invoicing software guide covers invoice-only needs.
Red Flags to Watch For
- !
Free tiers that cap invoices at 2, receipts at 2, and mileage at 5 trips a month are samplers, not a year of records.
- !
A plan with no accountant access when you expect to hire a preparer. QuickBooks Solopreneur lists none.
- !
A mileage log that applies one flat rate to the whole year. The IRS rate changed on July 1, 2026.
- !
A business bank where the accounting sits on a higher tier. Lili's accounting software starts on Smart at $35 a month.
- !
Xero Early for an owner who invoices often. It stops at 20 invoices and 5 bills.
- !
A tax-payment feature described without its plan. Found needs Plus and a Schedule C, and Keeper includes quarterly taxes on Premium.
The Bottom Line
QuickBooks Solopreneur at $20 a month is the pick for a sole proprietor who drives, scans receipts, and invoices, as long as no preparer needs access. Start on Wave Starter or Found at $0 if invoices and a profit figure are enough. Pay for Found Plus at $35 when you want to pay quarterly taxes from the account, and FreshBooks Plus at $43 when a preparer needs your books. Test one trip dated before July 1 and one after before you commit.
Frequently Asked Questions
What is the best accounting software for sole proprietors in 2026?
QuickBooks Solopreneur is the default for a one-owner business that drives, scans receipts, and invoices. It is $20 a month at list price with unlimited invoices, receipts, and mileage, and Intuit's self-employed page labels that tier Lite. It lists no accountant access, so a preparer needs Simple Start at $38 a month.
Wave Starter and Found are the free alternatives, and FreshBooks Plus at $43 a month is the pick when a preparer needs access. A single-member LLC can also read the LLC accounting guide.
How much does accounting software for a sole proprietor cost in 2026?
List prices on October 4, 2026: QuickBooks Solopreneur is $20 a month and Simple Start is $38. Wave Pro is $19 a month, or $190 a year. FreshBooks Lite is $23 and Plus is $43. Xero Early is $27, Zoho Books Standard is $15 a month billed yearly, and Akaunting Standard Cloud is $8 a month billed yearly.
Found Plus is $35 a month, Lili Smart is $35, and Keeper's yearly plans are $199 and $399. Bonsai Essentials is $19 a month billed yearly. Several of those have 3-month promos, so budget the list price.
Is there a free accounting tool for a sole proprietor?
Yes. Wave Starter is free for unlimited invoices, estimates, bills, and bookkeeping records. Found is free for business checking, invoicing, receipt scanning, and real-time tax estimates. Zoho Books Free covers 1 user plus 1 accountant while annual revenue stays under $50,000. Akaunting's self-hosted Standard plan is free, and Lili Core is $0 a month for banking.
QuickBooks has a free tier too, limited to 2 invoices, 2 receipts, and 5 mileage trips a month. The free accounting software guide compares the free options in more depth.
QuickBooks Solopreneur, Wave, or Found?
Choose QuickBooks Solopreneur at $20 a month when miles, receipts, and unlimited invoices matter and no preparer needs access. Choose Wave Starter at $0 when invoices and a profit and loss are enough, and add Pro at $19 a month when you want bank import. Choose Found when you want business checking and a running tax estimate in one free account.
Found Plus at $35 a month is the step up for paying quarterly taxes from the account, and it requires a Schedule C. The QuickBooks vs Wave page compares the first two in detail.
Which tools help with quarterly estimated taxes?
The IRS says sole proprietors generally have to make estimated tax payments if they expect to owe $1,000 or more when the return is filed. The 2026 due dates are April 15, June 15, September 15, and January 15, 2027, and the January payment is not required if you file by February 1, 2027 and pay the balance in full.
Found says it estimates quarterly taxes and sets money aside when you get paid, and paying from the account needs Plus and a Schedule C. Keeper Premium includes paying quarterly taxes, and Lili Pro allocates tax savings. QuickBooks' Solopreneur page describes no estimated tax tool.
How should a sole proprietor track mileage in 2026?
Use an app that logs trips as they happen and applies the right rate by date. The IRS business standard mileage rate for 2026 is 72.5 cents per mile from January 1 through June 30 and 76 cents per mile from July 1 through December 31.
QuickBooks Solopreneur includes unlimited mileage, and its free tier allows 5 trips a month. FreshBooks lists mileage tracking on every plan, and Found lists it as a tax feature. Enter one test trip before July 1 and one after to confirm the rate.
Does a sole proprietor need accountant access?
Only if someone else will work inside your books. QuickBooks Solopreneur lists no accountant access, and Simple Start at $38 a month includes it. FreshBooks Plus at $43 adds accountant access, Zoho Books Free includes 1 accountant, and Akaunting Standard Cloud includes 1 accountant.
If you want a professional to file instead, Keeper's plans have a tax pro review and sign the return, starting at $199 a year. Tell the preparer which tool you plan to use before you buy. The small-business accounting guide covers owners who hire staff.
Cite this page: Toolradar, "Best Accounting Software for Sole Proprietors in 2026", updated October 2026, https://toolradar.com/guides/best-accounting-software-for-sole-proprietors
Sources
Prices and plan details on this page come from each vendor's own pricing page, re-checked by the Toolradar pricing tracker:
- QuickBooks Solopreneur pricing, checked
- Wave pricing, checked
- Found pricing, checked
- FreshBooks pricing, checked
- Zoho Books pricing, checked
- Xero pricing, checked
- Lili pricing, checked
- Bonsai pricing, checked
- Akaunting pricing, checked
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