Bookkeeping Stack for Solos: Tools That Actually Work

Bookkeeping is one of those things no one wants to think about until tax season - and then it's already too late.

This guide breaks down the real options for solo bookkeeping: what you need, what's nice-to-have, and which tools actually deliver on their promises.

Disclaimer: This is general information about software and tools, not financial advice. Your specific needs may vary.

The Core Question: DIY or Delegate?

Before you pick tools, decide how much you want to do yourself.

Three paths:

1. Full DIY (spreadsheet or simple software, you do everything)
2. Hybrid (software that automates some tasks, you review monthly)
3. Fully Managed (bookkeeper does everything, you just review reports)

Your choice depends on:

• Revenue level (under $50K/year = DIY is fine; over $100K/year = consider delegating)
• Complexity (simple freelancing vs. multi-stream agency)
• Time (what's your hourly rate vs. bookkeeping cost?)
• Personality (do you like numbers or hate them?)

Path 1: Full DIY (Spreadsheet Method)

Who It's For

• First 6-12 months of business
• Simple income/expense structure
• Revenue under $50K/year
• People who want total control

The Setup

Tool: Google Sheets or Excel

What you track:

• Income (date, amount, client, project, payment method)
• Expenses (date, amount, vendor, category, business purpose)
• Monthly totals and profit/loss

Template structure:

INCOME
Date | Client | Project | Amount | Payment Method | Notes

EXPENSES
Date | Vendor | Category | Amount | Payment Method | Business Purpose

MONTHLY SUMMARY
Revenue: $X
Expenses: $Y
Net Profit: $Z

Pros

• Free
• Simple
• You understand exactly where your money goes
• No learning curve
• Full control

Cons

• Manual data entry (time-consuming)
• No bank sync
• Easy to make errors
• Doesn't scale past 50-100 transactions/month
• No automatic categorization

Time Cost

1-2 hours/month (more if you fall behind)

Recommended For

Freelancers, consultants, and solo builders in their first year with straightforward income and expenses.

Path 2: Hybrid (Bookkeeping Software)

Who It's For

• Established solos (6+ months in)
• Multiple income streams or clients
• Revenue $50K-250K/year
• Want automation but still hands-on

The Tools (Compared)

Wave (Free)

Best for: Budget-conscious solos with simple needs

What it does:

• Bank sync
• Income/expense tracking
• Invoicing
• Receipt scanning
• Basic reports (P&L, balance sheet)

Pricing: Free (makes money on payment processing)

Pros:

• Actually free (not a trial)
• Simple, clean interface
• Good enough for most solos
• Invoicing included

Cons:

• Limited integrations
• Basic reporting
• No inventory management
• No time tracking
• Support is slow

Best fit: Freelancers, consultants, and coaches with straightforward books.

QuickBooks Online ($30-60/month)

Best for: Solos who want industry-standard software

What it does:

• Bank sync (automatic categorization)
• Invoicing and payments
• Expense tracking and receipt capture
• Time tracking
• Project tracking
• Payroll (add-on)
• 1099 contractor management
• Mileage tracking
• Comprehensive reports

Pricing:

• Simple Start: $30/month (one user, basic features)
• Essentials: $60/month (three users, bill management)
• Plus: $90/month (projects, inventory)

Pros:

• Industry standard (most CPAs know it)
• Robust features
• Good mobile app
• Strong integrations
• Excellent reporting

Cons:

• Expensive
• Overwhelming UI for beginners
• Frequent upsell prompts
• Occasional bugs

Best fit: Agencies, fractionals with retainers, and anyone working with a CPA.

Xero ($13-70/month)

Best for: Solos who want clean UX and strong integrations

What it does:

• Bank reconciliation
• Invoicing
• Expense claims
• Projects
• Inventory
• Multi-currency
• App marketplace (1,000+ integrations)

Pricing:

• Early: $13/month (20 invoices, 5 bills)
• Growing: $37/month (unlimited invoices/bills)
• Established: $70/month (multi-currency, projects, expenses)

Pros:

• Beautiful, intuitive interface
• Best-in-class integrations
• Strong international support
• Great mobile app
• Unlimited users (most plans)

Cons:

• Fewer US-specific features than QuickBooks
• Not as common (harder to find help)
• Payroll is third-party

Best fit: Product builders, international solos, design-minded people.

FreshBooks ($19-60/month)

Best for: Service-based solos who invoice frequently

What it does:

• Time tracking
• Invoicing (beautiful templates)
• Expense tracking
• Project management
• Client portal
• Proposals and estimates
• Automatic payment reminders

Pricing:

• Lite: $19/month (5 clients)
• Plus: $33/month (50 clients)
• Premium: $60/month (unlimited clients)

Pros:

• Excellent invoicing experience
• Time tracking built-in
• Client-focused features
• Simple, friendly UI
• Great for service businesses

Cons:

• Limited accounting depth
• No inventory management
• Fewer reports than QuickBooks
• Bank sync can be slow

Best fit: Consultants, freelancers, and agencies that bill by the hour or project.

Comparison Table

Feature	Wave	QuickBooks	Xero	FreshBooks
Price	Free	$30-90/mo	$13-70/mo	$19-60/mo
Bank Sync	Yes	Yes	Yes	Yes
Invoicing	Yes	Yes	Yes	Excellent
Time Tracking	No	Yes	Via app	Yes
Projects	No	Yes	Yes	Yes
Payroll	No	Add-on	Third-party	No
Reporting	Basic	Excellent	Strong	Basic
Mobile App	Good	Excellent	Excellent	Good
Ease of Use	Easy	Moderate	Easy	Easy
CPA-Friendly	Okay	Excellent	Good	Okay

The Winner (For Most Solos)

If budget is tight: Wave (free is unbeatable)

If you work with a CPA or want robust features: QuickBooks Online

If you value design and integrations: Xero

If you invoice a lot and track time: FreshBooks

Time Cost with Software

30-60 minutes/month (after initial setup)

Setup time: 2-4 hours (connect bank, set categories, customize settings)

Path 3: Fully Managed (Bookkeeper or Service)

Who It's For

• Revenue over $100K/year
• Complex books (multiple LLCs, entities, revenue streams)
• People who hate bookkeeping
• High hourly rate (time is better spent earning)

The Services (Compared)

Bench ($299-599/month)

What it does:

• Dedicated bookkeeping team
• Monthly financial statements (P&L, balance sheet, cash flow)
• Tax-ready books (ready for CPA)
• Expense categorization
• Receipt matching
• Annual tax filing (included in higher tiers)

Pricing:

• Essential: $299/month (up to $15K/month expenses)
• Premium: $399/month (up to $50K/month expenses)
• Elite: $599/month (up to $200K/month expenses)

Pros:

• Hands-off (just forward receipts)
• Human bookkeepers (not just software)
• Tax filing included (Premium+)
• Clean monthly reports
• Reasonable pricing

Cons:

• Not real-time (reports lag by a few weeks)
• No advisory/CFO support
• Limited integrations
• Annual contract

Best fit: Solos who want done-for-you bookkeeping without premium pricing.

Pilot ($499+/month)

What it does:

• Full bookkeeping service
• Monthly close within 5 business days
• Dedicated bookkeeper + CPA
• CFO-level insights
• Tax strategy and planning
• Custom reporting
• QuickBooks or Xero backend

Pricing:

• Starts at $499/month (varies by complexity)
• Custom pricing for larger businesses

Pros:

• Fast monthly close
• CFO-level insights (not just bookkeeping)
• Strategic tax planning
• White-glove service
• Strong reputation

Cons:

• Expensive
• Overkill for simple businesses
• Requires $10K+/month revenue to be worth it

Best fit: Profitable agencies, high-earning fractionals, multi-entity solos.

inDinero ($500+/month)

What it does:

• Bookkeeping
• CFO services
• Tax planning and filing
• Financial dashboards
• Business analytics
• Fundraising support

Pricing:

• Starts at $500/month (custom pricing)

Pros:

• Full-service (bookkeeping + tax + CFO)
• Real-time dashboards
• Business analytics
• Tax filing included

Cons:

• Expensive
• Better suited for funded startups than solos
• Complex pricing

Best fit: High-growth agencies or solos planning to scale.

Local Bookkeeper ($200-800/month)

What it does:

• Varies (typically monthly reconciliation and reports)

Pricing:

• Hourly: $50-150/hour
• Monthly retainer: $200-800/month (depends on volume)

Pros:

• Local relationship
• Flexible
• Often cheaper for simple books
• Can meet in person

Cons:

• Quality varies wildly
• May not be tech-savvy
• Limited availability
• Harder to replace if they leave

Best fit: Local SMBs, solos who prefer in-person relationships.

Service Comparison

Service	Price	Best For	Tax Included?
Bench	$299-599/mo	Hands-off bookkeeping	Yes (Premium+)
Pilot	$499+/mo	CFO-level insights	Yes
inDinero	$500+/mo	Full-service + analytics	Yes
Local Bookkeeper	$200-800/mo	Local relationships	Sometimes

Time Cost with Managed Service

15-30 minutes/month (just review reports and approve)

The Right Stack for Your Stage

Year 0-1 (Testing, Pre-Revenue or Low Revenue)

Recommended:

• Spreadsheet (Google Sheets)
• Business checking account
• Receipt folder (Google Drive)

Cost: $0/month Time: 1-2 hours/month

Year 1-2 ($50K-100K Revenue)

Recommended:

• Wave (free) or QuickBooks Simple Start ($30/month)
• Business checking + savings
• Annual CPA for tax filing

Cost: $0-30/month + $500-1,000/year for CPA Time: 30-60 minutes/month

Year 2+ ($100K-250K Revenue)

Recommended:

• QuickBooks Online or Xero
• Bench or local bookkeeper
• CPA for tax planning and filing

Cost: $300-600/month + $1,500-3,000/year for CPA Time: 15-30 minutes/month (just review)

Scaling ($250K+ Revenue)

Recommended:

• QuickBooks Online (Plus tier)
• Pilot or inDinero (full-service)
• CPA firm (tax + advisory)

Cost: $600-1,200/month + $3,000-10,000/year for CPA Time: 1 hour/month (strategic review)

Essential Integrations

No matter which path you choose, connect these:

Banking:

• Sync bank and credit card accounts (auto-import transactions)

Payments:

• Stripe, PayPal, or payment processor (auto-record revenue)

Invoicing:

• If using separate invoicing tool, sync to bookkeeping software

Receipt Capture:

• Expensify, Shoeboxed, or built-in mobile app (scan receipts instantly)

Time Tracking (if applicable):

• Toggl, Harvest, or Clockify (sync billable hours)

Project Management (if applicable):

• Track project profitability

Common Mistakes to Avoid

1. Picking tools before understanding your needs

• Choose based on your workflow, not marketing
• Start simple, upgrade later

2. Not reconciling monthly

• Software doesn't fix bad habits
• Reconcile every month without exception

3. Letting receipts pile up

• Scan receipts as they happen (use your phone)
• Future you will thank present you

4. No backup categorization rules

• Set rules for recurring transactions
• Review automated categorization regularly

5. Ignoring reports

• Your P&L tells you if you're profitable
• Cash flow statement shows if you'll run out of money
• Actually read them monthly

The Setup Checklist

Week 1: Choose your path

• Assess your needs (DIY, hybrid, or managed?)
• Pick your tool or service
• Set up account

Week 2: Configure

• Connect bank accounts
• Set up expense categories
• Configure automation rules
• Link payment processors

Week 3: Backfill

• Import historical transactions (if applicable)
• Categorize existing expenses
• Reconcile current month

Week 4: Routine

• Set monthly reconciliation reminder
• Create receipt-scanning habit
• Review first month's reports

Your Action Plan

Today:

1. Calculate your monthly transaction volume
2. Decide: DIY, hybrid, or managed?
3. Pick one tool to try (most have free trials)

This week: 4. Set up the tool 5. Connect your bank 6. Categorize last month's transactions

This month: 7. Run your first monthly close 8. Review profit/loss report 9. Adjust categories as needed

Next quarter: 10. Evaluate if your system is working 11. Upgrade or switch if needed

The Bottom Line

There's no perfect bookkeeping tool. There's only the right one for your current stage.

Start simple. Most solos over-engineer their bookkeeping stack and under-use it.

The best system is the one you'll actually use consistently.

If you're just starting: use a spreadsheet.

If you're generating revenue: use Wave or QuickBooks.

If you're profitable and growing: hire Bench or a local bookkeeper.

If you're scaling: get Pilot or full-service support.

Your books don't need to be perfect. They need to be accurate, consistent, and useful.

That's it.

---

Ready to set up your full finance stack? Read our Solo Finance Setup guide for banking, taxes, and runway planning.

Need help with entity-specific tax requirements? Check out our Tax Checklist by Entity Type.

Want to calculate your early pricing and runway? Try our Early Pricing Calculator.

Want weekly finance and operations tips? Join our newsletter for practical advice on running a profitable solo business without the overwhelm.