Freelance Management Software: The Ultimate Guide

Updated: 3rd December 2025

Freelancers now represent a huge and fast-growing segment of the workforce. Recent independent estimates suggest there are around 1.57 billion freelancers globally, equal to roughly 46% of the world’s 3.38 billion workers. Naturally, more businesses are increasing their use of freelance talent.

Yet in most organizations, managing freelancers still falls to individual managers - from finding and onboarding talent to coordinating work, tracking progress, and processing invoices.

What is Freelance Management Software?

If that process sounds exhausting, it’s because it is. Full-time hiring spreads the workload across HR, Legal, and Accounts - but with freelancers, most organisations still manage everything manually, creating instant chaos.

That’s where freelance management software comes in.

It centralises every moving part, automates the admin, and turns a messy, multi-team effort into one clean, streamlined workflow - built for the fast, flexible nature of freelance work and ready to scale with you.

👉 Curious how a Freelancer Management System (FMS) differs from a Vendor Management System (VMS)? Read our comparison.

What are the benefits of Freelance Management Software?

1. They help you source talent

   To begin with, a good freelance management platform eases the process of finding new freelancers. Given that freelancers are engaged more frequently than full-time employees, and that the requirement is often immediate, this process needs to be quick and easy. TalentDesk enables this by integrating with PeoplePerHour, to give users access to its database of 3 million freelancers. You can filter by rate, location, experience, expertise and more to shortlist and find the most relevant talent in minutes.
   
   

2. They make compliant onboarding a breeze

   When using a dedicated software, you will enable you to create an onboarding form, customized to include all the information your organization requires. There on, every new freelancer you hire will automatically be asked to submit the right documents, contracts, NDAs and bank details before they even begin working for you. This helps you ensure that you capture all the necessary information right at the start, and don’t miss out on anything crucial.

3. They help manage documentation compliantly

   Once you gather all the required freelancer data, your chosen software will collate and store the forms and documents securely in one place. This saves you from having all that data scattered across various inboxes and chat apps, and it ensures that your organizational processes are flawless when it comes to following compliance protocols. Should you need to pull up any specific form or tax detail of a particular freelancer later, you know exactly where to find that information.

4. They let you juggle talent

   One of the biggest challenges managers face is to find the right people for the right job, at the right time. It is unrealistic to expect every manager to stay updated about the strengths and talents of each freelancer, especially in fast-growing companies where new people join the team each month.
   
   Once you do have your experts hired and onboarded, your freelance management software will maintain a comprehensive database of talent so that you can easily find the right freelancer, the next time a new requirement comes up. It will let you filter and search with ease, and it will also let you see exactly who is available at any particular time, which helps you cut down on unnecessary back and forth as you try to manage timelines.

5. They simplify project planning and execution

   Synchronizing tasks is not easy when you have different people, based in different locations, handling different parts of the project. This becomes even more complex when you consider the fact that each manager may be handling more than one project at a time.
   
   Freelance management software offers the perfect solution as it weaves project management capabilities into the system. Having a comprehensive dashboard lets your managers keep track of who is in charge of which part of the project, so that they can manage dependencies accordingly. For instance, TalentDesk has a 360-degree project dashboard that helps your managers create projects, manage upcoming deadlines, create dedicated teams for different tasks and enjoy a real-time view of project budgets, which helps reduce overspending

6. They offer collaboration capabilities

   With many or all of your freelancers and contractors based in different locations, it can be all too easy for important communication to slip through the cracks. When conversations happen in silos, it becomes difficult for managers to notice when one freelancer on the project has missed receiving a crucial update or when someone does not have access to the information they need.
   
   A good platform will include collaboration features, thus enabling all your external workers, managers and stakeholders to connect seamlessly in one place. This also adds an extra layer of security if you are working with proprietary or internal company information – sharing everything in one place is much safer than having it all spread across various communication apps.

7. They enable time tracking

   Maintaining timesheets manually can quickly get tedious with the greater number of freelancers you bring on board. Moreover, it leaves huge scope for human error – think forgotten entries or duplicated references.
   
   A freelancer management platform will offer time tracking features to help you resolve this. TalentDesk, for example, makes it really simple for all your freelancers to log the time spent on a task, with just a few clicks.

8. They save you time and cost in invoice processing

   Unlike employee salaries which are paid in one go, your freelancer invoices don’t come in all together. Every completed task or project involves different freelancers sending individual invoices, all at different times. This can quickly flood your managers’ inboxes – and sorting, verifying and processing all these invoices eat up a lot of their time.
   
   This is yet another step that a good platform will automate for you. Our software tracks freelancer timesheets, consolidates all the invoices and generates a single monthly invoice for you. Once you release the funds to your freelancer management solution, the payment automation system then pays each individual freelancer on your behalf, generating audit trails as it goes. Having this step automated actually saves you up to 70% in invoice processing costs – not to mention all the time that it frees up for your managers
   
   👉 See our choice of the top 12 systems to pay freelancers.

9. They make international payments simple

   If you are working with a global workforce, making payments individually can become a stumbling block, even after you’ve processed the invoices. This is because it involves international payments – which involves navigating different currencies, exchange rates and global banking protocols.
   
   A dedicated software will help you here by functioning as a payment portal with multi-currency capabilities. Some systems will also enable you to set up multiple global entities under one parent organization. This means you can have all local freelancer and contractor invoices billed to the entity in that geography – which saves you the hassle of dealing with expensive exchange rates every time.

10. They take care of the busy work

    While you can handle all the steps above through separate tools, the lack of a unified system creates a lot of busy work for your managers. For example, imagine a freelancer updates their timesheet at the end of a project through your time tracking tool. You will still need to verify that with the tasks they were assigned – and then match that approved time to the invoice they send. That in turn, will need to be reconciled with the relevant payment receipt in your accounting software.
    
    An integrated freelance management software reconciles all these processes in real time, thus removing the unnecessary admin work from your managers’ workdays. In younger organizations, this is a huge advantage because managers can then spend that time on higher level tasks that actually help grow the business.

11. They make audits and reports seamless

    Here again, having multiple disjointed systems (or worse, having no systems in place!) makes those quarterly audits unnecessarily stressful. Having to create a single budget report, for instance, would then involve trying to dig out months-old invoices or having to locate a specific contractor’s Tax Identification Number (TIN).

    Dedicated freelancer management platforms ease this process by generating audit trails and saving all that information in one place makes it super simple to track work, payments and documentation – which makes budgeting and reporting, a stress-free process.

12. They help you build better relationships with freelancers

    You, as the employer, are not the only one who benefits from having an organized system in place. Every freelancer and contractor appreciates the transparency that a freelance management software offers.
    
    From gaining visibility on task updates so they’re not left guessing about approvals to enjoying the assurance that their invoices will be paid out by a certain date without fail, freelance management software can make the engagement that much smoother for your workers. This makes you a very attractive employer – so the next time you need freelancers for a new project, you’ll find these same trusted professionals excited to work for you again.

How does Freelance Management Software work? 

Implementing and adopting software is not as complicated as you might think. Most modern cloud-based systems are incredibly easy to use, and they allow you to integrate any existing data that you already have across various document storage and project management platforms. Of course, your software provider will also likely have teams to help you along the way. Depending on the software you choose, you might be able to get it up and running within the hour!

Here are 6 ways to make your chosen platform work well for you:

1. Have a project owner in place

   Identify one person within your organisation who will be in charge of the onboarding process. They will be responsible for keeping track of the progress within the organization, and will be the go-to person for anyone who needs help navigating the software. They will also ensure that there is a unified channel of communication with the software provider — they’ll work closely with the dedicated account manager and will be the first to receive any news or announcements about features releases.

2. Communicate effectively with freelancers

   Freelance management software is a tool for both you and your freelancers, so make sure you give them advance notice that a new system is being introduced. Don’t forget — freelancers don’t know what is discussed internally within the organisation, so you will have to give them enough context. Communicate effectively about when you are planning to roll it out, how it will help them, and how they can work with you to help you achieve your desired goals. Like any other piece of software, it is only as useful as the information you put into it. So, tell your freelancers exactly how you want them to manage their profiles so that it can make things smoother for both of you.

3. Implement it right

   Getting your software up and running may just take minutes, but it’s also important to devote some time to implement it effectively across your organisation. Without proper training on how to use the system, you may find internal managers as well as external workers getting frustrated, losing steam, and reverting to old methods. One great way to ease implementation is to seek the help of your account manager from the software of your choice. They will be able to assess your unique company situation and schedule in a set of onboarding calls to both help you roll out the software and teach you how to use it effectively. Do make sure that all your managers and key stakeholders are on the call so that they can be brought up to speed. It might also be a good idea to organise a training call for your freelancers. Do also document your processes as you go. This way when more people start using the platform there’s already a consistent procedure in place.

4. Get continued buy-in from stakeholders

   Communicate with your stakeholders at relevant points in the project, and include all your departmental heads in these conversations. This will help you explore how your freelance management software can drive benefits across the different departments of your organisation. After all, a good freelance management platform has features that encompass HR, recruitment, legal and accounts functions, so it can certainly cater to many areas of your business.

   If any of your stakeholders had some key points of concern at the initial buy-in phase, it would be a good idea to provide new information and updates that address these concerns. When people see that you’re consistent and continue to keep them involved where appropriate, it will reinforce their decision to back the project as being the right choice.

5. Make iterative improvements

   Once you’ve completed the implementation process, allow time for the system to bed in. Track its use and get user feedback – both internally and from your freelancers. This will allow you to identify areas of inefficiencies and make iterative improvements to your processes to drive maximum benefit.

6. Communicate with your account manager

   Every good platform provider will assign a dedicated account manager just for you – and their input shouldn’t stop after you’re on board. Make sure that your account manager is someone you can build a good working relationship with because they’ll help you for as long as you use the system. They will help you extract more value from your freelance management software, work with you to implement any process changes required, and keep you up to date on the ever-evolving software.

Looking to compare the best freelance management software (FMS) options? Check out our full blog. 

As the freelance economy continues to grow, it is evident that the way we work is set to change forever. The old methods of managing freelancers (spreadsheets and decentralized systems) might work in a pinch, especially if you’re just starting to engage with an external workforce. However, this is not very scalable in the long run and it only slows you down. A platform like TalentDesk can help you stay agile by helping you make the most of a hybrid workforce – without getting bogged down by the operational challenges.