4 best accounting software for consultants: Simplify your finances

For consultants, managing finances effectively is just as critical as delivering expert advice to clients. The right accounting software can transform complex financial tasks into a streamlined, manageable process, freeing up valuable time to focus on core business activities.

Choosing the best tool isn't a one-size-fits-all decision. The ideal solution depends on your specific business structure, the volume of your transactions, and your comfort level with handling finances. This guide explores some of the top accounting software options available, helping you find the perfect match for your consulting practice.

What to look for in consulting accounting software

Consultants have unique requirements when it comes to financial management. They juggle multiple clients, track billable hours, and manage various project-related expenses. Therefore, the software should offer specific features that cater to these needs.

Key functionalities to prioritize include robust time-tracking, streamlined expense billing, and mobile accessibility for managing finances on the go. It’s also vital that the software integrates with other platforms you use and offers a user-friendly interface to minimize the learning curve.

Many modern accounting systems also integrate tools that automate the capture of receipts and invoices. A service like Zenceipt, for instance, can connect to your email inbox to automatically pull and process these documents, which significantly reduces manual data entry and helps ensure every deductible expense is recorded.

A comprehensive solution should also include the following features:

• Cloud-based access for anytime, anywhere availability.
• Customer Relationship Management (CRM) capabilities to organize client financial data.
• Strong accounting support for when you encounter issues.
• Seamless integration with your other business software.

Key factors in your decision

The best accounting solution for your consulting business will align with your company's current stage and future growth plans. Consider your budget, your existing accounting system, and your specific needs before committing to a platform.

For instance, a solo consultant just starting might prioritize affordability and ease of use. A growing firm, however, might need more advanced features like project profitability tracking and multi-user access.

Think about your long-term goals. If you plan to expand your business, choose a scalable solution that can grow with you. Many platforms offer tiered pricing, allowing you to upgrade your plan as your needs become more complex.

Ultimately, the goal is to find a tool that not only simplifies your current financial workflow but also supports your business's evolution. Taking advantage of free trials is an excellent way to test a platform's suitability before making a financial commitment.

1. FreshBooks

FreshBooks is designed for service-based businesses, making it a strong contender for consultants who are comfortable managing their own books. It excels at automating common accounting tasks and offers a 30-day free trial to get started. Key features include professional invoicing, client billing, expense reporting, and automated bank entries.

The pricing structure is tiered to accommodate different business sizes. The Lite plan is $15 per month for up to five billable clients, while the Plus plan at $25 per month increases the client limit to 50 and adds features like automatic expense tracking and recurring billing. The Premium plan at $50 per month offers unlimited clients and advanced features like project profitability tracking. For larger needs, a custom-priced Select plan is available.

Users often praise FreshBooks for its ability to create professional-looking invoices that can be customized with a company logo. It’s also recognized for its excellent customer service and its tools for managing recurring invoices and client retainers, which are particularly useful for consultants.

However, the platform has some limitations. It lacks comprehensive inventory management and does not allow for tracking income or expenses by class, which might be a drawback for some businesses. The built-in metrics and reporting tools could also be more robust. It is best suited for small business owners and freelancers who need a straightforward, easy-to-use accounting tool.

2. QuickBooks

QuickBooks Online is arguably the most recognized name in DIY accounting software, largely due to its user-friendly interface and comprehensive feature set. Its popularity means that many accountants and bookkeepers are already familiar with it, which can simplify collaboration.

QuickBooks offers several plans, starting with Simple Start at $30 per month, which covers basic income and expense tracking, invoicing, and receipt organization for a single user. The Plus plan, at $85 per month for up to five users, adds bill management, time tracking, and project profitability features. For larger teams, the Advanced plan at $200 per month supports up to 25 users and includes business analytics, batch invoicing, and a dedicated account team.

One of its greatest strengths is its extensive integration capabilities with a vast ecosystem of third-party applications, allowing you to build a customized tech stack. The software is easily accessible from any device, making it convenient for consultants who are often on the move. Its intuitive design makes it relatively easy for newcomers to learn and navigate.

On the downside, customer support can be a challenge. The company tends to steer users toward online forums for help rather than providing direct, readily available support. While powerful, QuickBooks Online is primarily designed for small to medium-sized businesses and may not be the best fit for larger, more complex enterprises. It remains an excellent choice for consultants and small businesses with straightforward models.

3. Xero

For consultants who are just launching their business or operating on a lean budget, Xero presents a compelling and affordable DIY bookkeeping platform. Its clean interface and ease of use make it particularly attractive for those new to accounting software.

Xero’s pricing plans are highly competitive. The Early plan is just $12 per month and is recommended for new businesses and freelancers, allowing for 20 invoices and 5 bills per month. The most popular Growing plan, at $34 per month, removes these limits and adds features like bulk transaction reconciliation. The Established plan, at $65 per month, includes multi-currency support, expense claims, and project tracking.

The platform is known for its strong mobile app, which makes it easy to manage finances from a phone. Its user-friendly design simplifies tasks like bank reconciliation and sending quotes. For businesses with employees, Xero offers an optional payroll integration with Gusto, starting at an additional monthly fee.

However, some users report that Xero's customer service can be difficult to reach for live support. The platform also offers fewer direct integrations or "plug-ins" compared to some of its competitors. Additionally, its global search functionality is considered basic, which might be a minor inconvenience for some users. It’s best for self-employed professionals and new consulting businesses.

4. Sage

Sage Intacct, often referred to simply as Sage, is a powerful cloud financial management platform tailored for small and medium-sized businesses. While it has a strong focus on industries like construction, healthcare, and non-profits, its robust features are also well-suited for growing consulting firms.

The software provides real-time financial and operational metrics, offering a comprehensive view of your business's health. Its core financial modules include accounts payable and receivable, cash management, purchasing, and an intelligent general ledger. It also offers advanced modules for project costing, subscription billing, and in-depth financial management.

Sage stands out for its customizability and its ability to manage both financial and operational data in one unified platform, making it a great tool for team collaboration. It is notably the preferred cloud financial management software of the American Institute of Certified Public Accountants (AICPA), a testament to its quality and reliability.

Because Sage Intacct is highly customizable, its pricing is not transparent and is available only by quote. This complexity can be overwhelming for freelancers or small business owners who only need basic accounting functionality. Therefore, Sage is best for established small to mid-sized businesses and franchises that require a sophisticated and scalable financial management system.