Accounting Software for Consultants: Best Picks for Independent Consultants and Consulting Firms
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In short
The right accounting software for a consultant follows how you bill, not the job title. If you bill hourly, FreshBooks at $23 a month ties time entries straight to invoices. If you bill fixed fees and need to know whether a project made money, QuickBooks Online gates project profitability at the Plus tier, which is $140 a month, so budget for that rather than the $38 Simple Start price you see quoted. If two or three people share the books, Xero at $25 a month (rising to $27 on October 1, 2026) includes unlimited users on every plan while QuickBooks meters seats by tier. None of these show what Stripe, PayPal or a course platform deducted before paying you, which is why consultants with income outside client invoices add an income tracker such as Earnly from $12 a month.
Last updated September 2026
The honest read
Most roundups treat "consultant" as one job with one software answer, and it is not. A solo strategy consultant on monthly retainers, a two-person firm billing time and materials, and an independent who runs workshops alongside client work have three different accounting shapes and three different right answers. The decision that actually costs money is not which brand you pick, it is which tier that brand puts your must-have feature on. Project profitability, the single report a fixed-fee consultant needs most, sits three tiers up in QuickBooks. Extra seats are free on Xero and metered on QuickBooks. Retainer handling is native in FreshBooks and manual almost everywhere else. Get the shape right first and the brand mostly follows.
Published prices
Accounting software for consultants, US list prices
US list prices as published by each vendor in September 2026. Prices move, and several widely shared comparison tables are quoting figures the vendors no longer charge, so the "worth knowing" column carries the part that changes the real cost.
| Tool | Entry price | Best at | Worth knowing |
|---|---|---|---|
| Earnly | $12/mo Solo, billed yearly | Income by source and client, gross to fees to net | An income tracker, not a ledger. Read-only, no free plan |
| Bonsai | $15/user/mo Basic | Proposals, contracts, invoices in one flow | Elite tier needs a 3 user minimum |
| Wave | $0 Starter, $19/mo Pro | Simple double-entry books for a solo practice | No project profitability, payments and payroll cost extra |
| Zoho Books | $20/mo Standard | Low-cost books inside a wider suite | The no-cost tier only lasts while revenue stays under $50,000 |
| QuickBooks Solopreneur | $20/mo | Schedule C and quarterly estimates | Single user, not a full ledger, no project reporting |
| FreshBooks | $23/mo Lite | Hourly billing, retainers, time to invoice | Lite caps you at 5 billable clients, extra members $11/mo |
| Xero | $25/mo Early ($27 from Oct 1, 2026) | Small firms sharing one set of books | Unlimited users on every plan, Early caps you at 20 invoices |
| QuickBooks Online | $38/mo Simple Start | A ledger your CPA already works in | Simple Start is one user and has no project profitability |
| QuickBooks Online Plus | $140/mo | Project profitability on fixed-fee work | Rose from $99 in August 2026, includes 5 users |
FreshBooks, Xero and QuickBooks figures were checked against each vendor pricing page in September 2026. QuickBooks Essentials, Plus and Advanced changed for renewals on or after August 1, 2026, so tables still showing Essentials at $75, Plus at $115 or Advanced at $275 are quoting the old card.
Published prices
What it actually costs as a consulting practice grows
The entry price is rarely the price you pay. These are the three moments that move a consultant onto a higher tier, with the annual difference at US list prices in September 2026.
| What changes | QuickBooks Online | Xero | FreshBooks |
|---|---|---|---|
| Solo, invoicing only | $38/mo Simple Start | $25/mo Early, 20 invoice cap | $23/mo Lite, 5 client cap |
| You pass 5 active clients | No change | Growing $55 for unlimited invoices | Plus $43, jumps 87% on client count alone |
| A second and third person need access | Essentials $85, then Plus $140 for 5 | No change, users are unlimited | $11/mo per extra team member |
| You need project profitability | Plus $140/mo | Growing $55 plus Xero Projects add-on | Included on Plus at $43 |
| Cost per year at that point | $1,680 | $660 plus the Projects add-on | $516 plus $132 per extra member |
Xero is billed monthly per organization in the US and every plan carries unlimited users, which is the real structural difference against QuickBooks seat metering. From October 1, 2026 Xero moves to $27, $59 and $97, and the multi-organization discount is being removed.
What accounting software do consultants use?
In practice consultants cluster around four tools, and which one fits depends on how you bill rather than what you call yourself. Consultants billing hourly or on time and materials usually land on FreshBooks at $23 a month, because time entries flow into invoices without re-keying and retainers are handled natively rather than as a workaround. Consultants who want the books their accountant already works in pick QuickBooks Online, starting at $38 a month for Simple Start. Small firms where two or three people need access lean toward Xero at $25 a month, because every Xero plan includes unlimited users while QuickBooks charges by tier for seats. Solo consultants who mainly need Schedule C and quarterly estimates, with no ambition to run a full ledger, use QuickBooks Solopreneur at $20 a month or Wave, which keeps a no-cost Starter tier and charges $19 a month for Pro. Bonsai at $15 per user per month is the outlier worth knowing about, because it bundles proposals and contracts with the invoicing, which suits consultants who spend as much time winning work as delivering it. If you are weighing the brands directly, our FreshBooks alternatives and Xero alternatives comparisons go deeper on each one.
Which QuickBooks plan do consultants actually need?
This is where consultants overspend or, more often, buy too low and discover the gap months later. QuickBooks Online is frequently recommended to consultants on the strength of project profitability, the report that tells you whether a fixed-fee engagement made money once you count the hours that went into it. That report is not available on Simple Start at $38 a month, and it is not available on Essentials at $85. It sits on Plus, which is $140 a month after the August 2026 increase, up from $99. So the honest version of "QuickBooks is good for consultants" is that the specific thing consultants want it for costs $1,680 a year, not $456. That may still be the right call. If you bill fixed fees and have ever finished a project unsure whether it was worth it, knowing the answer is worth real money, and QuickBooks Plus also includes five users, which softens the comparison against tools charging per seat. What is not defensible is a comparison table that lists QuickBooks at $38 next to the words "project tracking for consultants". Also worth noting: Simple Start is a single user, so the moment a bookkeeper or a second consultant needs access you are at $85 regardless of any reporting need.
Xero or QuickBooks for a small consulting firm?
For a one-person practice this is close to a coin flip and comes down to which interface you prefer and what your accountant supports. For a firm of two to five it is not close, and the reason is seat pricing. Xero includes unlimited users on every plan, billed per organization, so a five-person consulting firm on Xero Growing pays $55 a month in total. The nearest QuickBooks equivalent with five users is Plus at $140. Over a year that is $660 against $1,680. The catch is that Xero Early at $25 caps you at 20 invoices a month, which a busy consultant clears quickly, so realistically you are comparing Growing at $55 rather than the headline $25. Two other things belong in this decision. First, Xero prices are rising on October 1, 2026, to $27, $59 and $97, and the multi-organization discount is going away, which matters if you keep separate books for a personal services company and a holding entity. Second, QuickBooks is still what most US accountants work in day to day, and if your CPA charges by the hour, friction on their side has a price too. Ask them before you switch. If you are weighing the wider field, our QuickBooks alternatives page covers what else consultants move to and why.
How do consultants track income by client across Stripe and PayPal?
Accounting software records what landed in the bank. That is the correct job for a ledger, and it is also why consultants who take payment through Stripe, PayPal or a platform end up doing arithmetic by hand at tax time. A $2,000 invoice paid through Stripe arrives as $1,941.70 after 2.9% plus $0.30. Your bank feed sees $1,941.70. The 1099-K those processors file reports the gross figure, so building your books from deposits understates your receipts by exactly the fee total, and understates your deductible expenses by the same amount. The numbers still reconcile at the bottom line, but the income line on your Schedule C does not match what was reported about you, and that mismatch is the kind of thing that generates letters. It gets harder when consulting is not the only income. A consultant who also sells a workshop through a course platform, writes a paid newsletter, or takes sponsorship income is dealing with several different fee structures and several different payout schedules at once. That is the specific gap Earnly fills: every source on one board showing gross, then fees, then what you actually kept, with an income report you can hand to an accountant and an invoice tracker for what is still owed. It is not a ledger and it does not replace the software above. It is the income side, kept straight, so the ledger gets fed the right numbers.
What about consultants who bill on retainer?
Retainers break more accounting setups than any other consulting billing model, because money arriving is not automatically money earned. If a client pays $6,000 in January for six months of advisory work, recognizing all $6,000 in January overstates that month and understates the next five, and if the engagement ends early some of it was never yours. Cash-basis solo consultants can often live with this, and most do. It starts to matter when you are comparing months to decide whether the business is growing, when you are forecasting cash, or when an accountant is preparing accrual-basis statements. FreshBooks handles retainers natively, including drawing down against hours logged, which is the main reason it keeps showing up in consultant recommendations despite being lighter than Xero or QuickBooks as a ledger. In QuickBooks and Xero the usual approach is to record the payment against a liability account and release it as the work is delivered, which works but is a manual habit somebody has to maintain. Whichever way you go, the practical advice is to keep the retainer balance somewhere you look at weekly rather than somewhere you reconstruct in April. Consultants who also earn from courses or digital products face the same timing question on a different platform, and our accounting software for creatives comparison covers those cases alongside freelance income tracking for project-based work.
Side by side
Where the boards differ
| What you get | Earnly | Consultant accounting software |
|---|---|---|
| Income from every client and platform on one board | Yes | No |
| Gross, then fees, then take-home per payment | Yes | No |
| Payout calendar with expected pay dates | Yes | No |
| Client-ready income report for your accountant | Yes | Yes |
| Next-month income forecast, labeled an estimate | Yes | No |
| Double-entry ledger and balance sheet | No | Yes |
| Expense tracking and deductions | No | Yes |
| Invoicing and payment collection | Tracking only | Yes |
| Files your tax return | No | Some tiers |
Comparison reflects published pricing and feature descriptions as of September 2026; both products change. Pick the tool that fits how you earn. See what the board looks like on the income tracker homepage, or start with the revenue dashboard.
Questions people actually ask
What accounting software do consultants use?
Most independent consultants use FreshBooks, QuickBooks Online, Xero or Wave, and the pick follows the billing model. FreshBooks at $23 a month suits hourly and retainer billing because time flows into invoices. QuickBooks Online at $38 is the ledger most US accountants work in. Xero at $25 fits small firms because every plan includes unlimited users. Wave keeps a no-cost Starter tier for very simple practices.
Is QuickBooks good for consultants?
Yes, with one caveat about cost. QuickBooks Online is the ledger most US accountants already use, which reduces friction and often their fees. But project profitability, the report fixed-fee consultants most want, is only on the Plus tier at $140 a month, not on Simple Start at $38 or Essentials at $85. Simple Start is also a single user. Budget for the tier that carries the feature you are buying it for.
What is the best accounting software for a small consulting firm?
For a firm of two to five people, Xero is usually the cheaper answer because every plan includes unlimited users, billed per organization. Xero Growing at $55 a month covers a five-person firm; the nearest QuickBooks tier with five users is Plus at $140. Over a year that is $660 against $1,680. Xero prices rise to $27, $59 and $97 on October 1, 2026.
How much does accounting software cost for consultants?
Entry prices run from $0 to about $38 a month, and realistic prices run higher. Wave starts at no cost, QuickBooks Solopreneur is $20, FreshBooks Lite is $23, Xero Early is $25 and QuickBooks Simple Start is $38. Most consultants land one tier up once they pass a client cap or add a second user, so plan on $43 to $140 a month rather than the headline figure.
Does FreshBooks work for consultants?
It works well for consultants who bill hourly or on retainer, because time tracking feeds invoices directly and retainer drawdown is a native feature rather than a workaround. The limit is the billable client cap: Lite at $23 a month allows 5 clients, so short-engagement consultants are pushed to Plus at $43 by client count alone. Extra team members are $11 a month each on every tier.
Can I track consulting income by client?
Every tool listed here can report income by client once invoices are recorded against a client record. The gap opens when you are paid through Stripe, PayPal or a platform, because the deposit is net of fees while the 1099-K reports gross. Earnly shows each payment as gross, then fees, then take-home by source and client, so the income figure you report matches what was reported about you.
Do independent consultants need accounting software?
If you have a handful of clients, one payment method and no employees, a spreadsheet and a separate business bank account genuinely can be enough for a while. Software earns its cost at three points: when you pass roughly five active clients, when a second person needs access to the numbers, and when you start billing fixed fees and need to know which engagements made money.