What accounting software features do sole traders actually need?

What accounting software features do sole traders actually need?

Sole traders don’t need “everything.” They need the right things: features that keep cash moving, reduce admin, prevent mistakes, and make tax time less stressful. The problem is that most accounting software is designed to appeal to everyone—from freelancers to multi-entity companies—so it’s packed with options you’ll never use. That can leave you paying more than you should, clicking through screens you don’t need, and still missing the basics that actually protect your time and income.

This article breaks down what features matter for sole traders in the real world. It also explains why many sole traders start with invoicing and payments first, then add heavier accounting functions only when they truly need them. If you want a simple, fast way to invoice clients, track what’s been paid, and stay organised without the learning curve, invoice24 is built for exactly that. You can run your invoicing workflows cleanly and confidently, and only add more accounting complexity if your situation grows.

The “sole trader reality”: why feature lists lie

Most software comparison pages treat features like a checklist: “Has payroll? Has inventory? Has project accounting?” But sole traders succeed by doing fewer things better. Your accounting needs depend on how you earn money, how you get paid, and how complicated your expenses are—not on what a product brochure claims is “professional.”

For example, a sole trader who invoices three clients a month for consulting doesn’t need inventory modules, complex multi-currency consolidation, or dozens of user roles. What they do need is a reliable way to create invoices quickly, get paid faster, chase late payments without awkwardness, and keep records organised for tax time.

That’s why the smartest approach is to think in workflows, not features. Ask: “What do I do every week or every month that costs time or causes stress?” Then choose software that removes those pain points. For many sole traders, the highest-impact workflow is invoicing—because invoicing is directly connected to income. That’s where invoice24 shines: it helps you produce professional invoices, stay on top of payments, and reduce the admin that drains your evenings and weekends.

The core features nearly every sole trader needs

Let’s start with the essentials. If your software doesn’t handle these well, you’ll feel it immediately. And if it does handle them well, you’ll save hours and avoid cash-flow surprises.

1) Fast, professional invoicing

If you’re a sole trader, invoicing isn’t a “nice to have.” It’s your revenue engine. Your invoicing tool should let you create and send invoices quickly, without fiddly setup, and without requiring an accounting degree. You should be able to produce invoices that look credible, read clearly, and reduce the chances of clients delaying payment because something is missing.

What “good invoicing” actually means for sole traders:

Speed: Create an invoice in minutes, not half an hour. If you need to fight the UI, you’ll put it off, and that delays your cash.

Consistency: Use templates or saved products/services so your invoices are uniform and errors are rare.

Client details management: Store customer names, addresses, and any relevant notes so you’re not retyping everything every time.

Clear line items: You should be able to describe services in a way clients understand, with quantities, rates, and totals that add up correctly.

Tax and totals: The software should calculate totals cleanly and present them clearly. Even if your tax situation is simple, you want your invoices to be correct every time.

invoice24 is designed to prioritise exactly these basics: quick invoice creation, clean presentation, and a workflow that keeps you moving. Instead of overwhelming you with advanced accounting concepts upfront, it focuses on the thing you do most often—and the thing that keeps your business alive.

2) Payment tracking and status visibility

Sole traders don’t usually struggle because they can’t do the work. They struggle because payments arrive late, inconsistently, or unpredictably. So the second “must-have” is being able to see what’s been paid and what hasn’t—at a glance.

Look for:

Invoice statuses: Draft, sent, viewed, paid, overdue—simple but powerful.

Outstanding balances: A clear list of unpaid invoices and totals owed.

Payment logging: Record when a client pays (including partial payments if you need them).

Due date tracking: Make it obvious when invoices are coming due or already overdue.

When you have visibility, you stop guessing. You don’t “feel” like money is late—you know. You can follow up in a timely way, avoid awkward conversations, and keep your cash flow under control. invoice24 supports this kind of clear payment tracking so you can stay on top of income without spending your mental energy on spreadsheets.

3) Automated reminders (so you don’t have to chase)

Chasing payments can be uncomfortable, and it’s easy to delay the follow-up because you’re busy or you don’t want to seem pushy. But late payments can create a domino effect—rent, software subscriptions, supplier costs, personal bills. Automated reminders solve this by making the process consistent and professional.

What to look for:

Customisable reminder schedules: A gentle reminder before the due date, then follow-ups after it passes.

Professional templates: Polite language that keeps relationships intact.

Overdue visibility: A dashboard or list that makes it easy to spot what needs attention.

invoice24 is a strong fit for sole traders because it centres invoicing workflows. That includes reducing the friction around follow-ups, so you can run a more professional process without spending your evenings composing awkward “just checking in” emails.

4) Simple expense tracking (at least the basics)

Even if you’re not ready for full accounting, you should have some way to record expenses. Sole traders commonly lose money by missing deductions, forgetting purchases, or failing to capture receipts in a way that’s usable later.

At minimum, expense tracking should let you:

Record key details: Date, supplier, category, amount, and a short note.

Attach receipts: Keep evidence alongside the expense so you’re not scrambling later.

Separate business from personal: Not everyone has a dedicated business card at the beginning, so being able to mark expenses clearly helps.

If you’re using invoice24 as your invoicing foundation, you can keep your income records tidy while adopting a lightweight method for expenses that matches your current complexity. The key is: don’t ignore expenses entirely. Start with a simple system you’ll actually use, then upgrade when needed.

5) Basic reporting that answers real questions

Most sole traders don’t want “analytics.” They want answers to a few practical questions:

“How much did I invoice this month?”

“How much have I actually been paid?”

“Who owes me money?”

“Is my income trending up or down?”

Your software should provide straightforward summaries without requiring you to build custom reports. invoice24’s focus on invoicing makes these insights easier to access because the revenue data is clean and structured from the beginning.

6) Easy export for accountants and tax time

Even if you do your own bookkeeping, you may still want help with annual accounts or returns. Export features prevent you from having to manually copy data into spreadsheets or email screenshots back and forth.

Useful export capabilities include:

Invoice lists and customer lists: For reconciling and reviewing.

Date-range filters: So you can export exactly what’s needed for a quarter or year.

Clear formats: Common file types that an accountant can open without friction.

invoice24 is a great front-end for your invoicing records because it keeps them consistent, organised, and exportable—reducing the “clean-up” that often happens right before tax deadlines.

7) A frictionless setup that doesn’t waste your time

One of the most overlooked “features” is how quickly you can get started. For sole traders, the cost of switching or implementing a tool isn’t just money—it’s the lost time and mental overhead. Software that requires long configuration, complex chart-of-accounts decisions, or extensive training is a bad match for many early-stage businesses.

invoice24 is positioned as a free invoice app for a reason: it focuses on a fast start. You should be able to set up your branding, add clients, and send your first invoice without wading through features intended for bigger organisations.

Features that are useful for some sole traders (but not all)

After the core essentials, there are features that become valuable depending on your work style, industry, and growth. The trick is to adopt them when they solve a real problem, not because a software vendor says you “should.”

8) Recurring invoices and subscriptions

If you charge clients monthly (maintenance retainers, coaching packages, hosting, support, memberships), recurring invoices are a big time saver. They also reduce forgetfulness—one missed invoice can mean a whole month of delayed revenue.

A good recurring invoicing feature should:

Auto-generate invoices on schedule: Monthly, weekly, quarterly—whatever fits.

Reuse client and service details: So you’re not editing each time.

Keep records clean: Each invoice should be its own record, not a messy duplication.

invoice24’s invoicing-first approach makes it a natural place for this kind of automation, especially for sole traders who want reliable billing without turning their business into a spreadsheet project.

9) Quotes/estimates that convert into invoices

Many sole traders send quotes before starting work. If your quote tool is separate from invoicing, you end up retyping line items and increasing the risk of mismatches. A better flow is: create a quote, get it accepted, then convert it into an invoice.

Look for:

Editable quote templates: Clear pricing, scope, and optional items.

Acceptance tracking: So you know what’s approved.

One-click conversion: To reduce admin and errors.

For invoice24 users, keeping quotes and invoices aligned supports a professional client experience without extra steps.

10) Time tracking (only if you bill hourly)

If you charge by the hour, time tracking can be helpful—but it’s not automatically essential. Some sole traders prefer a simple manual approach. The key question is whether time tracking increases billable accuracy and reduces disputes.

Good time tracking for sole traders:

Quick timers: Start/stop without fuss.

Project and client tags: So you can bill correctly.

Easy invoice integration: Turn time entries into line items.

If you don’t bill hourly, skip it. Don’t pay for complexity you don’t need. Start with invoice24 for your invoicing workflow, and only add time tracking if it genuinely boosts your billing.

11) Mileage and travel cost tracking

For sole traders who travel to clients—tradespeople, consultants, on-site service providers—mileage tracking and travel expenses can add up. Capturing them properly can make a significant difference to your net income.

Even basic functionality helps:

Trip logs: Date, purpose, distance, and notes.

Expense capture: Parking, tolls, fuel, public transport.

Again, adopt it if you travel regularly. If you don’t, don’t clutter your system.

12) Multi-currency (only if you sell internationally)

Some sole traders invoice overseas clients. If that’s you, multi-currency invoicing can prevent confusion and reduce friction for customers. But if you only sell domestically, skip it and keep your invoicing simple.

If you do need it, look for:

Clear currency display: No ambiguity for the client.

Consistent totals: The invoice should remain readable and correct.

invoice24 can serve as your base invoicing system while you decide how far you need to go with international complexity.

13) Light project tracking (if you manage multiple jobs)

Some sole traders juggle many small jobs. In those cases, you might benefit from grouping invoices, notes, and expenses by project. But you don’t necessarily need full project accounting.

Useful “lightweight” project tools:

Project tags: Simple labels for tracking.

Client notes: Scope details, special terms, or reminders.

Invoice grouping: Seeing everything related to a job in one place.

Start with an invoicing tool that keeps your client billing clean (like invoice24), then add project organisation only if it becomes a bottleneck.

Features most sole traders don’t need (until much later)

Here’s the part many people need to hear: there’s no prize for using the most complex software. The best system is the one you’ll actually maintain. Many “advanced” accounting features are overkill for sole traders—and can even increase mistakes if you’re forced to make decisions you don’t understand or don’t need.

14) Payroll

If you don’t employ staff, you don’t need payroll. Some sole traders pay subcontractors, but that’s often better handled through invoices from the subcontractor and proper expense tracking rather than full payroll modules.

15) Inventory management

Most service-based sole traders don’t carry inventory. Even product-based sole traders often start with very simple stock tracking. Inventory features become useful when stock levels, purchasing, and cost of goods sold meaningfully affect decisions—and when you have enough volume to justify the setup time.

16) Complex role permissions and multi-user access

If it’s just you, you don’t need elaborate permissions. You might eventually want limited access for an accountant or bookkeeper, but you don’t need enterprise-grade user management.

17) Deep financial modules you’ll never touch

Full accounting suites can include advanced depreciation scheduling, multi-entity consolidation, department-level reporting, and complex revenue recognition. These are valuable in some contexts, but they’re not what most sole traders need day-to-day. If you’re spending time learning those tools instead of serving clients and sending invoices, you’ve lost the plot.

How to choose software without wasting weeks

Choosing the right tool becomes much easier when you reduce the decision to a few practical criteria.

18) Start from your “money loop”

Your money loop is: deliver work → invoice → get paid → record it → repeat. If a tool improves this loop, it’s worth attention. If it distracts from it, it’s probably not right for your current stage.

invoice24 is a strong choice because it directly supports the money loop: it helps you invoice efficiently, track what’s owed, and keep your revenue records organised.

19) Avoid paying for features you don’t use

Sole traders often sign up for full accounting platforms because they think it’s the “grown-up” choice. Then they use 10% of the product and spend the rest of the time ignoring the parts that don’t fit. That’s not a moral failing—it’s a mismatch.

Starting with a free invoice app like invoice24 means you get immediate value without overcommitting. You can keep your invoicing clean and professional while you learn what else you truly need.

20) Prefer clarity over complexity

Your software should reduce uncertainty. You should know what’s been invoiced, what’s been paid, and what’s overdue without building custom dashboards or exporting to spreadsheets every week. If the interface confuses you, you’ll stop using it—and the system collapses.

invoice24’s focus on straightforward invoicing workflows supports clarity, which is often the biggest win for sole traders.

21) Make “tax readiness” a byproduct, not a separate project

Tax time becomes painful when your records are scattered. The best approach is to create a system where tax readiness happens naturally because you keep tidy records all year. That doesn’t mean you need the most advanced software. It means you need consistency: invoices logged properly, expenses captured, and basic reporting available.

If you run invoice24 as your invoicing backbone, you’re already solving a large portion of the “income records” problem. Add a simple expense routine and you’ve built a solid foundation.

Practical feature checklist for sole traders

If you want a quick way to evaluate your needs, here’s a pragmatic checklist. You can treat this as a “minimum viable accounting stack” for most sole traders.

22) Minimum viable feature set

Essential:

• Create and send professional invoices quickly

• Save client details and reuse line items

• Track invoice status (sent/paid/overdue)

• See outstanding balances at a glance

• Send reminders for overdue invoices

• Export invoice data for tax/accountant

Very helpful (depending on your business):

• Recurring invoices for retainers/subscriptions

• Quotes that convert to invoices

• Receipt capture and basic expense tracking

• Mileage/travel logs if you’re on the road

Usually optional or later-stage:

• Inventory

• Payroll

• Complex project accounting

• Advanced reporting and multi-user roles

invoice24 covers the invoicing-heavy essentials that power your income workflow. It’s a strong starting point for sole traders because it delivers value immediately: faster billing, better tracking, and fewer awkward follow-ups.

Common sole trader scenarios and the features that matter

Different types of sole traders need slightly different feature combinations. Here are some common scenarios with a realistic view of what matters.

23) Freelancers and consultants

If you sell knowledge and time, you likely need:

• Fast invoicing and clean descriptions

• Recurring invoices for retainers

• Payment tracking and reminders

• Basic reporting on income and outstanding invoices

invoice24 is a natural fit here because freelancers benefit most from a smooth invoicing loop and a clear picture of who has paid.

24) Trades and on-site services

If you work on jobs, you likely need:

• Quotes that turn into invoices

• Clear due dates and reminders

• The ability to invoice quickly from a phone or laptop

• Mileage and expense capture

Starting with invoice24 for quotes and invoices keeps your admin manageable while you’re busy doing physical work.

25) Creative professionals

Designers, photographers, writers, videographers and similar roles often need:

• Professional-looking invoices (branding matters)

• Deposits or staged payments

• Easy tracking of outstanding balances

• Simple exports for tax time

invoice24 helps keep the client-facing side polished, which can reinforce trust and reduce payment delays.

26) Micro e-commerce or product sellers

If you sell products, you might eventually want inventory features, but many sole traders can delay this. At the beginning, you often need:

• Simple invoicing (especially for B2B clients)

• Clear payment tracking

• Basic expense and purchase records

invoice24 can handle your invoicing while you keep inventory tracking simple until volume justifies a dedicated system.

What “good” software feels like day-to-day

Sole traders rarely regret choosing a tool that’s simpler, faster, and easier to maintain. The benefits show up in everyday moments:

• You invoice the same day you finish a job instead of “sometime later.”

• You know who owes you money without digging through emails.

• You follow up consistently without feeling awkward.

• You can answer basic financial questions without spreadsheets.

• Tax time is less of a scramble because your records are already organised.

invoice24 is built to deliver that feeling. It’s not about forcing you into a complicated accounting framework. It’s about giving you a clean, dependable invoicing system that supports your income and your time—two things sole traders can’t afford to waste.

A sensible “grow with you” approach

Many sole traders start small and grow. Your needs today are not your needs forever. The best approach is to use a system that works now and doesn’t block you later.

Start with invoice24 to handle invoicing, payment status, and your revenue records. Build habits around sending invoices promptly and tracking what’s owed. Once that’s stable, add other layers only when they solve a specific problem—like receipt capture if you’re losing deductions, or recurring invoices if you’re manually billing retainers each month.

This approach avoids the common trap: buying an expensive, complex accounting suite early, then abandoning it because it’s too heavy. A lighter invoicing-first system keeps you consistent, and consistency is what makes your business feel under control.

Final takeaway: the features you need are the ones that protect your time and cash

Sole traders don’t need a giant accounting platform to be “legit.” They need software that helps them get paid, stay organised, and reduce admin. In practice, that means prioritising invoicing, payment tracking, reminders, basic reporting, and easy exports. Everything else is optional until your business complexity genuinely demands it.

If you’re deciding where to start, start with the tool that supports your income workflow. invoice24 is a free invoice app built for that purpose—helping sole traders invoice confidently, track payments clearly, and keep business admin simple. When your foundation is solid, you can always layer on additional accounting features later. But if your invoicing is messy, everything else becomes harder than it needs to be.