Affordable Accounting Software for Side Hustles: Options Under $20/Month

When I started my first side hustle three years ago, I tracked everything in a spreadsheet. It worked—sort of. But come tax time, I spent hours sorting through jumbled transactions, missing receipts, and confusing calculations. I knew there had to be a better way.

The good news? You don’t need to spend a fortune on accounting software for your side gig. In 2025, there are numerous affordable options under $20 per month that can save you time, reduce stress, and potentially even help you identify tax deductions you might otherwise miss.

I’ve personally tested over a dozen accounting platforms while running various side hustles (freelance writing, e-commerce, and consulting). In this comprehensive guide, I’ll break down the best affordable accounting solutions, their key features, and which types of side hustles they’re best suited for.

Why Your Side Hustle Needs Proper Accounting Software

Before diving into specific platforms, let’s address why proper accounting software is worth the investment, even for a small side hustle:

1. Tax compliance: Accurately track income and expenses for tax reporting
2. Time savings: Automate repetitive tasks like receipt tracking and invoice creation
3. Profitability insights: See which activities actually make you money
4. Growth planning: Make informed decisions about scaling your side hustle
5. Peace of mind: Reduce stress about financial record-keeping

According to a PCMag survey, small business owners and side hustlers save an average of 5 hours per month using dedicated accounting software instead of spreadsheets. That’s 60 hours per year you could spend growing your business or enjoying life!

Best Accounting Software Under $20/Month for Side Hustles

After extensive testing, here are the top affordable accounting solutions for side hustlers in 2025:

1. Wave Accounting

Best for: Free core accounting with optional paid features

Price: $0 for accounting, invoicing, and receipt scanning; $16/month for Wave Pro

Key Features:

• Unlimited invoicing and expense tracking
• Double-entry accounting system
• Customizable sales tax settings
• Bank and credit card connections
• Financial reports (P&L, balance sheet, cash flow)
• Receipt scanning via mobile app
• Payment processing (fees apply:2.9% + $0.60 per transaction)

Limitations:

• No inventory management
• Limited integrations with other tools
• Payment processing only available in US, Canada, and UK
• Customer support only via email for free users

Wave stands out for offering robust accounting features completely free. According to NerdWallet, it’s an excellent option for service-based side hustles that don’t need inventory tracking.

2. Zoho Books

Best for: Side hustles with growth potential

Price: Free for businesses with less than $50K annual revenue; $15/month for Standard plan

Key Features:

• Up to 1,000 invoices per year on free plan
• Client portal for customers
• Expense tracking and bank reconciliation
• Project time tracking
• Recurring transactions
• 5+ users on paid plans
• 14+ integrations with other Zoho apps
• Mobile app with Apple Watch support

Limitations:

• Revenue cap on free plan
• Limited third-party integrations
• More complex interface than some alternatives

Tech.co rates Zoho Books as “best for integrations,” making it ideal for side hustlers who use multiple business tools and want them to work together seamlessly.

3. ZipBooks

Best for: Simplicity and ease of use

Price: Free Starter plan; $15/month for Smarter plan

Key Features:

• Unlimited invoicing and vendors
• Bank account connection (1on free plan)
• Basic expense tracking
• Digital receipt storage
• Time tracking
• Basic project tracking
• Accept credit card payments (processing fees apply)

Limitations:

• Limited reporting on free plan
• Only one user on free plan
• Basic customer support

ZipBooks is praised by TechnologyAdvice for its clean interface and good reporting tools, making it particularly suitable for side hustlers who want something straightforward and easy to learn.

4. FreshBooks

Best for: Service-based side hustles with clients

Price: Starting at $15/month (promotional price; regularly $19.50)

Key Features:

• Customizable professional invoices
• Client credit card storage
• Automated payment reminders
• Time tracking with billable hours
• Project budgeting
• Expense tracking with receipt capture
• Mobile app with mileage tracking
• Client communication tools

Limitations:

• Limited to 5 billable clients on lowest tier
• No double-entry accounting on lowest tier
• Additional users cost extra ($11/month each)

FreshBooks consistently ranks high for user experience and is particularly strong for service-based side hustles. Zapier notes it’s especially good for freelancers who bill by the hour.

5. TrulySmall Accounting

Best for: Micro-businesses and beginners

Price: $20/month (often discounted to $15/month)

Key Features:

• Unlimited invoicing and clients
• Expense tracking
• Bank connections
• Receipt capture
• Basic financial reports
• Tax-friendly categories
• Simple, clean interface
• Dedicated customer support

Limitations:

• Limited integrations
• No inventory management
• Basic reporting compared to competitors

TrulySmall is designed specifically for very small businesses and side hustles. Its simplified approach makes it ideal for beginners who find other accounting software overwhelming.

6. QuickBooks Solopreneur

Best for: Tax optimization and side hustles that might become full-time

Price: $20/month (often promotional pricing available)

Key Features:

• Income and expense tracking
• Receipt capture
• Mileage tracking
• Estimates and invoices
• Tax category suggestions
• Self-employment tax estimates
• Integration with TurboTax
• Mobile app

Limitations:

• No inventory tracking
• Limited to one user
• More expensive than other options when not on promotion

QuickBooks Solopreneur is streamlined specifically for side hustlers and freelancers. Business.org notes its tax features are particularly valuable for those concerned about maximizing deductions.

7. Patriot Software Accounting

Best for: American side hustlers with simple needs

Price: $20/month for Basic Accounting

Key Features:

• Unlimited invoicing
• Expense tracking
• Bank reconciliation
• 1099 vendor tracking
• Free US-based support
• Simple, straightforward interface
• Add-on payroll available

Limitations:

• US-only availability
• Limited reporting
• Basic feature set
• Few integrations

PCMag identifies Patriot as the most affordable accounting software for small businesses in 2025, making it a good option for side hustlers who prioritize simplicity and US-based support.

Feature Comparison Chart

Here’s how these platforms stack up on key features important for side hustlers:

Best Accounting Software by Side Hustle Type

Different side hustles have different accounting needs. Here are my recommendations based on specific side hustle types:

For Freelance Writers, Designers, and Consultants

Best choice: FreshBooks or Wave

Freelancers need strong invoicing, time tracking, and client management. FreshBooks excels at these features, while Wave offers them for free with slightly fewer bells and whistles.

For Etsy Sellers and E-commerce Side Hustles

Best choice: Zoho Books

Online sellers need inventory tracking and sales tax management. Zoho Books offers these features at an affordable price point, with the ability to scale as your shop grows.

For Delivery Drivers (Uber, DoorDash, etc.)

Best choice: QuickBooks Solopreneur

Gig drivers need excellent mileage tracking and tax category suggestions. QuickBooks Solopreneur offers both, along with quarterly tax estimates to avoid surprises.

For Rental Property Side Hustles

Best choice: Wave or TrulySmall

Property side hustles need expense categorization and document storage. Both Wave and TrulySmall handle these needs well without unnecessary features.

For Multi-faceted Side Hustlers (Multiple Income Streams)

Best choice: Zoho Books

If you’re juggling multiple side hustles, Zoho Books offers the project tracking and categorization needed to keep different income streams organized.

Free vs. Paid: When to Upgrade

Many side hustlers start with free accounting software, but when should you consider upgrading to a paid plan? Here are some indicators:

Signs It’s Time to Upgrade:

1. You’re approaching transaction or client limits
2. Your side hustle revenue exceeds $1,000/month
3. You’re spending more than 2hours monthly on financial tasks
4. You need features like time tracking or mileage logging
5. Tax time was stressful last year
6. You’re considering scaling your side hustle

According to Homebase, the time savings from paid accounting features typically justify the cost once your side hustle generates consistent monthly income.

Setting Up Your Accounting System: Best Practices

Whichever platform you choose, follow these best practices to maximize its effectiveness:

1. Separate Business and Personal Finances

Even for a side hustle, maintain separate accounts for business transactions. This makes accounting significantly easier and protects you in case of tax audits.

2. Set Aside Time for Weekly Bookkeeping

Schedule 15-30 minutes weekly to categorize transactions, scan receipts, and review your financial position. Regular maintenance prevents end-of-year chaos.

3. Leverage Mobile Apps

All the software options listed offer mobile apps. Use them to scan receipts immediately and track expenses on the go rather than saving everything for later.

4. Create Templates for Recurring Tasks

Set up invoice templates, recurring billing, and standard expense categories to save time on repetitive tasks.

5. Connect Bank Accounts Securely

All modern accounting platforms use bank-level encryption. Connecting your accounts saves hours of manual data entry and reduces errors.

Tax Considerations for Side Hustlers

One of the biggest benefits of proper accounting software is simplified tax preparation. Here’s how to maximize this advantage:

Track Deductible Expenses

Common deductions for side hustles include:

• Home office expenses
• Business mileage
• Software subscriptions
• Professional development
• Supplies and materials
• Marketing costs

Set Aside Money for Taxes

Most accounting software can help estimate your tax liability. As a general rule, set aside 25-30% of your side hustle profits for taxes.

Generate Year-End Reports

Before tax season, generate these essential reports:

• Profit and Loss Statement
• Expense Summary by Category
• Sales Tax Collected (if applicable)
• 1099-NEC information (if you paid contractors)

According to TechnologyAdvice, side hustlers who use accounting software are significantly less likely to miss deductions than those using spreadsheets or manual methods.

The Hidden Costs of “Free” Accounting

While free accounting options like Wave’s core features are genuinely valuable, be aware of potential hidden costs:

Time Costs

Free options often require more manual work and offer fewer automations.

Transaction Fees

Many free platforms charge payment processing fees (typically 2.9-3.5% plus a fixed fee per transaction).

Upgrade Pressure

Free tiers may limit features until you hit friction points that encourage upgrading.

Limited Support

Free users typically receive limited customer support compared to paying customers.

That said, starting with a free option is often wise for new side hustles. You can always upgrade as your needs grow.

Making the Final Decision: How to Choose

With so many good options under $20/month, how do you make the final choice? Consider these factors:

1. Current Side Hustle Volume

If you’re just starting with a few transactions monthly, free options like Wave or Zoho Books’ free tier will likely suffice.

2. Growth Plans

If you plan to grow your side hustle significantly, choose software that can scale with you, like Zoho Books or FreshBooks.

3. Technical Comfort

If you’re not tech-savvy, prioritize user-friendly interfaces like ZipBooks or TrulySmall.

4. Tax Complexity

If your tax situation is complex, QuickBooks Solopreneur’s tax features may justify its slightly higher cost.

5. Try Before You Commit

Most options offer free trials or free tiers. Test drive your top choices before committing to a paid plan.

Conclusion: Investing in Your Side Hustle’s Financial Health

Even at just $15-20 per month, accounting software represents an investment in your side hustle. However, the time saved, stress reduced, and potential tax deductions identified make it one of the smartest investments you can make in your business.

For most side hustlers in 2025, Wave and Zoho Books offer the best combination of features and affordability. Wave’s completely free accounting features make it ideal for beginners, while Zoho Books provides a growth path as your side hustle expands.

Remember that the right accounting software doesn’t just track numbers—it gives you insights to make better business decisions, saves you time that you can reinvest in growth, and provides peace of mind knowing your financial records are organized and accurate.

Your side hustle might be “on the side,” but its financial management deserves proper attention. With today’s affordable accounting options, there’s no reason to struggle with spreadsheets or shoeboxes full of receipts.

Have you used any of these accounting platforms for your side hustle? Which features have been most valuable to you? Share your experiences in the comments below!