Best Accounting Software for Solo Tradespeople: QuickBooks vs FreshBooks vs Wave vs Xero

The Quick Answer

Wave is the best free option if you're just starting out, need to track initial tool expenses (like a new miter saw or pipe wrench set), and send basic invoices for small jobs. FreshBooks is ideal if you're a plumber or roofer sending many invoices and need simple time tracking for hourly work. QuickBooks Online is the most common choice, especially if you plan to hire a bookkeeper later to handle sales tax or payroll when you grow. Xero is strong if you frequently buy and track bulk materials like lumber, copper pipe, or large tile orders before using them on jobs, or work on cross-border projects.

Side-by-Side Breakdown

**Wave:** Free for basic bookkeeping and sending invoices for jobs like fixing a leaky faucet or installing a new light fixture. Card payments cost 2.9% + 30¢ per transaction – fine for collecting payments on a $300 repair, but it adds up on a $5,000 roofing job. Doesn't track materials (no inventory) or help with complex job costing. Best for: Tradespeople doing small, simple jobs who want to keep costs zero.

**FreshBooks:** Starts at $19/month (Lite) for up to 5 clients. Great for sending professional invoices for project-based work, like a bathroom remodel or a large flooring job. You can track your hours spent on a site and easily bill clients. It's not ideal for detailed material tracking (double-entry accounting is weak here), so your bookkeeper might groan if you deal with lots of receipts for lumber, copper, or tile. Best for: Solo plumbers, electricians, or handymen who primarily bill for their time.

**QuickBooks Online:** Starts at $35/month (Simple Start). This is the industry standard. It handles everything from tracking expenses for new power tools to generating profit & loss reports for your business loan. Has add-ons for payroll when you hire your first apprentice. It has a steeper learning curve than Wave, but most accountants who work with contractors know it inside and out. Best for: Tradespeople who plan to grow, hire staff, or need solid financials for permits and bank loans.

**Xero:** Starts at $15/month (Early) for limited invoices. More robust plans begin around $42/month. It's strong for managing inventory if you stock up on materials like piping, wiring spools, or specific tile batches. Its purchase order tools help you manage large orders from suppliers like Home Depot or Ferguson. The mobile app is handy for tracking expenses from the job site. Best for: Tradespeople who manage a lot of materials, run a small shop, or plan to expand quickly.

When to Choose Wave

Choose Wave if you're just getting started and haven't landed a big job yet, or if your monthly income is below $10,000 from small repairs. This means jobs like patching drywall, fixing a few leaks, or basic electrical work. You only have simple income and expenses – tracking gas for your truck, receipts for a few fittings from the hardware store, and invoicing. You don't stock up on materials (no inventory), don't have an apprentice, and work only locally. It's a great way to keep your business expenses separate from personal ones for tax time without paying for software before you make consistent money.

When to Choose FreshBooks

Pick FreshBooks if your work is mostly project-based, like installing a new roof, upgrading a home's electrical panel, or completing a full bathroom remodel. You send many detailed invoices and want clients to easily pay their deposits and final balances online (e.g., via credit card). You regularly track hours spent on a job site to bill clients accurately. You don't carry a large stock of materials, so advanced material tracking isn't a priority. Your focus is on getting paid fast and sending professional-looking quotes and invoices without worrying about deep accounting features.

When to Choose QuickBooks Online

Go with QuickBooks Online if you expect to grow and hire your first helper or apprentice within the next year. Most bookkeepers and CPAs who work with contractors are experts in QuickBooks, making tax season easier. You need integrated payroll when you bring on staff. If you both charge for labor (service) and sell specific materials (product) like custom tile or fixtures, QBO helps track both. It's essential if you plan to get a bank loan for a new work van, a larger equipment purchase (like a commercial pipe threader), or to expand your shop, as banks often ask for QBO reports. It helps you keep audit-ready records from day one, which is key for permits and compliance.

When to Choose Xero

Choose Xero if you regularly buy and hold a physical stock of materials, like large quantities of roofing shingles, specialty wood flooring, or plumbing fittings, and need to track what you have on hand and what you've used for each job. Its purchase order features are great for managing your orders from suppliers and ensuring you don't over-order. While you're "solo" now, if you foresee hiring an administrative assistant or another tradesperson who also needs basic accounting access, Xero's user setup is very flexible. It's less common for a solo tradesperson in the US to need multi-currency billing, but if you do cross-border work near a border, it's there.

The Verdict

For most US-based solo tradespeople just starting out or making under $10,000 a month: Start with Wave. It's free and handles the basics. When you begin getting bigger jobs, hire an apprentice, or plan to get serious about scaling (reaching $20,000-$30,000+ monthly revenue), upgrade to QuickBooks Online. If your business is all about quoting and invoicing for fixed-bid or hourly projects like remodeling, go straight to FreshBooks for its strong invoicing features. If you manage a small shop with a steady stock of materials from day one, Xero might be a better fit.

How to Get Started

**Wave:** Head to waveapps.com and sign up for your free account. Connect your business bank account (make sure you have a separate one for your trade business!). Review and categorize your first 30 days of business expenses, like tool purchases or gas receipts, to get a handle on your spending.

**FreshBooks:** Take advantage of their 30-day free trial. Create a professional invoice template with your logo, and add your first few client contacts. Send a dummy invoice to yourself to see how it works before the trial ends.

**QuickBooks Online:** Start the 30-day free trial. Before you pick a plan, talk to a bookkeeper or CPA who works with contractors; they can often guide you to the right plan and might even offer a discount. Connect your bank accounts early to see how transactions flow in.

**Xero:** While the Early plan is cheaper at $15/month, it limits you to 20 invoices per month. If you're doing more than a few jobs, you'll likely need the Growing plan ($42/month) within a few months, so plan for that cost. Set up your suppliers and track a few material purchases from day one.

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