QuickBooks vs FreshBooks vs Wave: Best Accounting Software for Self-Employed Tradespeople
As a self-employed plumber, roofer, or flooring installer, your accounting software is where your business lives. Don't wait until tax time to find out you've been using the wrong tool. QuickBooks, FreshBooks, and Wave each fit different trade businesses. Picking the right one now saves you headaches and re-doing your books later.
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The quick answer
Use QuickBooks if you plan to hire helpers, need to track inventory like a pallet of tile, or work closely with an accountant. Choose FreshBooks if you mostly need simple invoicing for jobs, tracking your hours, and seeing if each plumbing repair or roofing project made money. Wave is best if you're just starting out, need a free way to track income and expenses, and don't have a budget for software yet.
Side-by-side breakdown
QuickBooks Online is the most complete option for small trade businesses. It handles invoicing for jobs, tracking costs for materials like lumber or pipe, matching your bank statements, and even running payroll if you hire an apprentice. Most professional accountants use it. Plans usually start around $30/month. FreshBooks is made for service pros like you. Its invoicing looks sharp for quoting a new floor or a roof repair, it tracks your hours spent on a job, and shows if you actually made money on that kitchen remodel. Plans start around $17/month. Wave is a free choice for new self-employed tradespeople. It tracks what you earn and spend, lets you send basic invoices, and has no monthly fee. You pay extra for payroll if you hire someone or for processing credit card payments. It's good for simple tracking but has fewer features and less help than paid programs.
When to choose QuickBooks
QuickBooks is a good fit when your trade business gets more complex. This means if you buy materials in bulk (like a skid of drywall) that you use across many jobs, hire a few helpers, or need to track exact profit for each roofing or plumbing project. It's also the best choice if you plan to work with a professional bookkeeper or accountant. Most of them already use QuickBooks and can jump right into your books.
When to choose FreshBooks
FreshBooks is ideal if you primarily invoice customers for jobs or by the hour. If you want great-looking invoices for a deck build or a water heater installation, need to track the exact time you spend on each task, and want to see how much profit you made on that specific job without complicated reports, FreshBooks is built for you. It keeps things simple while still showing you job profitability.
When to choose Wave
Wave is the best place to start if you're just getting your trade business off the ground, especially if you're a one-person show like a solo tile setter or a new handyman. It lets you track your income from jobs and your expenses for tools or gas without any monthly fees. Once you hire your first apprentice, start buying materials in large quantities (more than just job-specific), or decide to get an an accountant who uses QuickBooks, you should plan to switch to another program.
The verdict
Trade business with helpers, job materials to track, or an accountant: QuickBooks. Self-employed tradesperson mostly doing client invoicing and needing clear job profit: FreshBooks. New solo tradesperson on a tight budget: Wave. For most growing trade businesses, QuickBooks will likely be your long-term solution, so switching early is less painful than waiting until your books are a mess.
How to get started
Begin with Wave if you're in your first year of plumbing, roofing, or flooring work, especially if you're pre-profit. Plan to move to QuickBooks or FreshBooks before you bring on your first helper or apprentice. Make sure you connect your separate business bank account right away and practice matching your transactions for at least one month. Your first tax season will be the real test of whether your accounting setup is helping or hurting you.
RECOMMENDED TOOLS
QuickBooks Online
The industry-standard small business accounting platform
FreshBooks
Invoicing and project profitability for service businesses
Wave
Free double-entry accounting for small businesses
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FREQUENTLY ASKED QUESTIONS
Can I use Wave and then switch to QuickBooks?
Yes, but the migration requires exporting data and re-entering or importing into QuickBooks. Do it before your first tax year ends so you have clean records. Many bookkeepers charge a fixed fee to handle the migration.
Do I need a bookkeeper if I use accounting software?
Accounting software records transactions. A bookkeeper reconciles, categorizes, and ensures the records are accurate. For businesses with significant revenue, a part-time bookkeeper saves more than their cost in avoided errors and tax savings.
What is the difference between accounting software and invoicing software?
Invoicing software creates and tracks invoices but does not do double-entry bookkeeping. Accounting software maintains a general ledger, income statement, and balance sheet. You need accounting software, not just invoicing, for tax compliance.
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