What bookkeeping software should I use as a digital nomad?

 There are many different options for bookkeeping softwares available to digital nomads. Which is the best? Let us give you our opinion on which is best for you.

Spreadsheets

The benefit of using a spreadsheet is.. It's cheap (if not free) and easy to use - most people know their way around a basic spreadsheet. Two of the most common are Microsoft Excel and Google Sheets.

The down sides are it is easy to delete data and there are no reports you can run to quickly look at profitability and other useful things real bookkeeping softwares have built in.

Making Tax Digital for income tax is being introduced soon and having a paid for software that will be integrated with HMRC will make this processes a lot smoother. This is still a couple of years away though! So if you aren't VAT registered and only have a small business then this may be a good option for you to start with.

Freshbooks

FreshBooks is designed with freelancers and service-based businesses in mind, offering a user-friendly platform that simplifies invoicing, time tracking and expense management. It's straightforward approach makes it an excellent choice for digital nomads who need a simple yet effective way to manage their finances.

The down side is it has limited features for larger businesses and the reporting capabilities are not as robust as other platforms.

As of writing this the cost of standard FreshBooks is £25 plus VAT per month.

Xero

Xero is a powerful cloud based accounting software that is highly regarded by businesses and accountants alike. Known for its sleek design and intuitive interface, Xero offers all the basic features and has robust multi-currency support making it an excellent choice for digital nomads dealing with international clients. It also has excellent reporting features. Xero is our favourite software and the one we recommend to our clients.

The only down side is the cost - as of writing it is £30 plus VAT per month, being the most expensive one on this list. I believe the prices are going to increase to £33 + VAT per month soon too.

Quickbooks

Quickbooks is very similar to Xero. It offers all the basic features with a good option of external reports to help you make financial decisions in your businesses.

However it is not as user friendly as Xero and I feel it is a bit 'clunky'. The cost is £28 + VAT per month for their essentials package and £38 + VAT per month for their plus package.

In summary

There are many other bookkeeping softwares too - Freeagent, Zoho Books and Wave to name a few. All online bookkeeping softwares are similar with subtle differences.

What I would recommend is trying a few of them out (most offer a free trial) and seeing which one you like best. We have found Xero is the most user friendly and popular with our clients. If you are a small, non-VAT registered business and do not want to pay for a software then there is nothing wrong with sticking with a good old fashioned spreadsheet!