As the world embraces technology and remote work, freelancers are entering a world of opportunities like never before. A study conducted by Upwork and Freelancers Union predicts that by 2028, 50% of the U.S. workforce will be working as freelancers. 

However, managing finances still feels like an uphill battle for most solopreneurs.

As a freelancer, you manage your finances, including taxes and retirement planning. This is where financial tools come into play – they help simplify these tasks so that you can focus on what you do best – providing quality services.

In this blog, we have brought you some of the best financial tools available for freelancers in 2024. These tools have been designed explicitly to meet freelancers’ unique needs and challenges in managing their finances. 

So, let’s dive in and explore the best financial tools for freelancers in 2024!

Top 10 Financial Tools for Freelancers in 2024

From tracking expenses and creating invoices to filing taxes, financial management has many complex and time-consuming processes crucial for long-term success.

However, it’s not easy for freelancers to manage day-to-day operations and perform these tasks manually.

Luckily, technological advancements have made numerous financial tools available that make financial management much easier and more efficient for freelancers. Let’s check out the top 10 financial tools for freelancers in 2024.

1. QuickBooks Self-Employed/Solopreneur

QuickBooks Self-Employed/Solopreneur is the perfect tool for self-employed individuals with multiple sources of income. This software offers an all-in-one solution for managing finances, tracking expenses, and organizing tax deductions. 

One of the key features is its ability to connect with your business bank accounts and credit cards in real time.

This means you can automatically categorize transactions as business or personal income and expenses, eliminating the need for manual data entry. 

The software imports transactions directly into your account, integrating with bank and credit card accounts, saving you time in double-data entry.

This feature is handy for those with multiple income sources or who frequently make business-related purchases on personal accounts.

In addition to income and expense tracking, QuickBooks provides tools for invoicing and estimating taxes. You can create customized invoices and send them directly to clients through email. 

The user-friendly interface makes it easy to generate professional-looking invoices that can be sent directly to clients via email or downloaded as PDFs. You can also set up recurring invoices for regular clients, making invoicing more efficient.

The software also calculates estimated quarterly taxes based on your income and expenses, making it easier to plan for tax payments.

With a built-in tax management system, you can rest assured that all necessary taxes are accounted for throughout the year. 

By tracking your business income and expenses throughout the year, the software can estimate how much you will owe in taxes come tax season.

This helps you plan and ensures you set aside enough for yearly taxes. The software tracks deductible expenses that can help lower your taxable income.

2. Mercury

Mercury is a digital banking solution built for startups and early-stage businesses.

It has become the most popular choice among small and medium-sized enterprises due to its zero monthly fees, limitless transactions, and intuitive online experience.

All Mercury users get access to a sizeable $5 million FDIC insurance through treasury accounts and sweep networks.

Their services, such as investor databases, venture debt, networking programs, and business credit cards, are specifically designed for startups. 

However, Mercury has become popular because of its free business banking account with a transparent and competitive pricing structure. The only drawback is that it is unavailable to trusts or sole proprietorships. 

Unlike traditional banks, Mercury has no monthly maintenance fees or minimum balance requirements. This means you can keep all your funds in one place without worrying about unexpected charges.

Mercury also provides real-time tracking of outgoing and incoming transactions, which is handy for tracking expenses and avoiding potential discrepancies.

It automatically categorizes transactions to reconcile books and generate detailed profit and loss statements for tax filings.

Mercury offers unique virtual cards for each transaction to enhance security.

These cards can be generated instantly for one-time use only to prevent online fraud, making Mercury an ideal choice for businesses dealing with large volumes of online transactions.

3. Wise

Wise, formerly known as Transferwise, is an online money transfer platform that allows you to send and receive payments in different currencies at competitive exchange rates.

It eliminates the need for multiple bank accounts or expensive wire transfers, making it an ideal choice for freelancers who work with clients globally.

One significant advantage of using Wise Money Transfer is its transparency.

The platform provides a real exchange rate with no markup on conversion. This gives you peace of mind, knowing there are no hidden fees or surprises when it comes to your money.

In addition to its transparency, Wise offers lower transfer fees than traditional banks. With traditional bank transfers, you may incur high transaction fees ranging from $20 to $50 per transfer. However, with Wise’s low flat fee structure, you can save up to 8 times on each transaction.

Another notable feature of Wise is its fast processing time. Typically, bank transfers take several days before the recipient receives the funds.

With Wise Money Transfer, your payment gets processed within 1-2 business days since they have local bank accounts in most countries where they operate.

Moreover, Wise also provides a multi-currency account feature that allows you to hold and manage funds in over 50 currencies.

This feature can come in handy if you frequently deal with clients from different countries or need to make purchases in foreign currency without worrying about conversion charges or fluctuating exchange rates.

Using Wise Money Transfer also means being able to track your transactions conveniently through their user-friendly mobile app or website dashboard.

You will receive real-time notifications on the status of your transfers, making it easier to keep track of your finances.

4. Bonsai

Bonsai is a comprehensive tool designed specifically for freelancers to streamline their project management and billing.

It offers an all-in-one solution that combines time tracking, task management, invoicing, contracts, and payment processing into one platform.

The time tracking feature lets you track the hours spent on each project. This helps calculate your billable hours and provides insights into your productivity levels.

With customizable reports, you can easily view the breakdown of your work hours by project or client.

Bonsai also offers an intuitive task management system that allows you to create tasks within projects and assign them to others if necessary.

You can set deadlines for each task and receive notifications when they are due. This ensures you stay on top of your workload and never miss a deadline.

Bonsai invoicing functionality automatically generates professional-looking invoices based on the tracked time or flat fee rates entered in each project.

Moreover, you can track unpaid invoices and schedule automated reminders at specific intervals to follow up on clients who have not paid yet.

Another essential aspect for freelancers is contract management, often overlooked in traditional project management tools.

With Bonsai, you can create legally binding contracts with built-in e-signature capabilities. This saves precious time, as there’s no need to manually send contracts back and forth between parties.

5. Mint

Mint is a popular financial management tool widely used by freelancers to track their income, expenses, and overall financial health.

This powerful platform allows users to connect all their accounts in one place, making it easier to get a comprehensive overview of their finances.

One of Mint’s main features is its ability to automatically categorize transactions from various accounts, such as bank accounts, credit cards, and investment accounts.

This eliminates manual data entry and makes it easier for freelancers to track their spending habits.

Additionally, Mint provides budgeting tools for businesses to create customized budgets based on their income and expenses.

This allows freelancers to set realistic goals and track their progress. The platform also sends alerts when users surpass their set budgets or when unusual transactions are detected.

Moreover, Mint offers bill payment reminders so users never miss a due date again.

You can link your bills directly to Mint and receive notifications when payments are due. This feature can benefit freelancers with irregular income streams who need assistance managing their cash flow.

In addition to these features, Mint provides detailed reports on spending patterns through charts and graphs.

These visual representations help freelancers identify areas where they may be overspending or where they could potentially save money.

Furthermore, security is always a top priority with personal finance management platforms like Mint.

The website uses bank-level encryption protocols to ensure that user data remains safe.

6. TurboTax

TurboTax is a popular and trusted tax preparation software that has been helping freelancers with their taxes for over 30 years.

Its user-friendly interface and comprehensive features make it a go-to tool for many self-employed individuals.

One key benefit is its ability to handle complex tax situations. Unlike traditional tax preparations, freelancers must deal with various income sources, deductions, and expenses.

TurboTax simplifies this process by guiding users through each step and ensuring that all necessary information is included in their tax return.

Another advantage of using TurboTax is its accuracy. The software uses advanced algorithms to calculate taxes, minimizing the chances of errors.

This can save freelancers from potential penalties or audits caused by mistakes in their tax returns.

It has a self-employment income section that helps users report all their freelance income. It also includes expense tracking tools that allow freelancers to keep track of deductible business expenses throughout the year.

In addition to these features, TurboTax offers expert assistance through its live chat and phone support options. This can particularly benefit first-time filers or those facing complicated tax situations.

7. Payoneer

Payoneer is a leading online financial platform that provides a convenient and secure way to receive payments from clients worldwide.

With Payoneer, freelancers can easily manage their finances and access their earnings in multiple currencies without worrying about high transaction fees or long wait times.

One of the main advantages of using Payoneer is its global reach. Payoneer allows freelancers to receive payments from anywhere in the world.

This is especially beneficial for those who work with international clients, as it eliminates the need to open a business bank account or deal with different currencies.

Freelancers often face high costs when receiving payments through traditional methods. But with Payoneer, they can save money on both incoming and outgoing transactions. This makes it an ideal choice for freelancers who want to maximize their earnings and avoid unnecessary expenses.

In addition to its cost-effectiveness, Payoneer offers fast and reliable payment processing. Once the client initiates a payment, it usually takes 1-3 business days for the funds to be available in the freelancer’s account.

This quick turnaround time makes it easier for freelancers to manage their cash flow and plan their finances accordingly.

Moreover, Payoneer offers various withdrawal options for freelancers, including local bank transfers, ATM withdrawals, and even prepaid Mastercard cards that can be used at any point-of-sale terminal worldwide.

8. Gusto

Gusto is a comprehensive financial tool designed specifically for freelancers and independent contractors.

One of Gusto’s key features is its payroll system, which handles everything from calculating and processing paychecks to handling tax forms and payments. 

In addition to payroll, Gusto also offers benefits administration for freelancers with employees or contractors working for them.

This allows business owners to offer their team benefits such as health insurance, retirement plans, and workers’ compensation without the hassle of paperwork or administrative tasks.

Another useful feature of Gusto is its employee time-tracking system. It integrates seamlessly with the payroll system, making it easy to track hours worked by employees or contractors for proper compensation.

This makes it simple to categorize the costs for tax purposes and creates a clear picture of where money is spent.

9. Coverdash

Coverdash is an innovative platform aiming to simplify the often complex and daunting world of insurance for freelancers. It provides them with customizable insurance cover options that meet their unique needs.

One of Coverdash’s key components is its ability to offer tailored insurance plans.

Unlike traditional insurance providers who offer one-size-fits-all packages, Coverdash understands that freelancers have different risks and requirements depending on their profession. 

With this in mind, they offer customizable plans that can be adjusted according to income level, type of work, and location. This means that freelancers are only paying for coverage that is relevant to them, saving them money in the long run.

Additionally, Coverdash offers comprehensive liability insurance for freelancers. This type of coverage protects against claims made by clients or third parties for damages or losses resulting from their work. 

As many freelancers work independently without the backing of a larger company’s liability coverage, this kind of protection gives them peace of mind, knowing that they are financially secure in case any legal issues arise.

In addition to these main features, Coverdash also offers flexible payment options, such as monthly installments rather than large lump-sum payments.

This is particularly helpful for freelancers with irregular income streams.

10. doola

doola is a business-in-a-box solution that supports freelancers and entrepreneurs on their journey to financial success.

It provides tailored solutions for freelancers to help them establish and maintain successful businesses, such as business formation, compliance, and bookkeeping.

Business formation is often the first step for freelancers to get their finances in order. Setting up a legal business entity helps them separate their personal and business finances and liabilities. It also enables them to enjoy more flexible taxation and apply for deductions to lower taxes.

However, managing this entire process on your own can overwhelm you. You must select the entity type, find a legal business name, create an Operating Agreement, and register with the state authorities.

With doola’s formation services, freelancers can save time and avoid potential errors.

We handle everything, from checking with state authorities for name availability to drafting Operating Agreements and applying through the appropriate channels for quick business formation.

doola also has a Total Compliance package that enables freelancers to focus on their work without worrying about administrative tasks.

Our services extend beyond taxes and assist with obtaining an Employer Identification Number (EIN) and other legal requirements specific to each industry.

doola also offers bookkeeping services designed specifically for self-employed individuals without an accounting background.

It connects multiple accounts, simplifies invoicing, and categorizes transactions to automate record-keeping and streamline tax filings.

Solve All Your Financial Troubles with doola

Instead of investing in multiple tools and platforms, freelancers look for an all-in-one solution to reduce their administrative burdens and manage their finances efficiently.

That’s where doola outshines its competitors.

You get everything you need to automate mundane tasks and streamline your financial management in one place.

From business formation to invoicing, bookkeeping, and tax filing, we handle everything to help you succeed in your entrepreneurial journey. 

Book a free consultation with our experts to understand how doola stands out as one of the best financial tools available for freelancers today.