QuickBooks Self-Employed is a cloud-based accounting program specifically designed for those who work for themselves, including private consultants, real estate agents, Uber drivers, and freelancers. You can track mileage to and from clients, keep an eye on your revenue and expenses, and submit your taxes with the QuickBooks Self-Employed Tax Bundle. There are three price categories available, ranging from $15 to $35 each month. A simplified version of QuickBooks Online that is cost-effective and easy to use, QuickBooks Self-Employed can assist you in automating and streamlining your accounting procedures. For the first three months, it is available at a 50% discount.
Pros
- Utilization simplicity.
- Automatic tracking of mileage.
- Support for affordable, individualized accounting & bookkeeping.
Cons
- Unfit for expanding businesses.
- Unable to be switched to a system that uses double-entry accounting.
- More pricey compared to leading rivals like Wave Accounting.
For what purposes do we recommend QuickBooks Self-Employed?
Quickly issuing invoices and keeping track of mileage, QuickBooks Self-Employed is a well-known accounting tool for handling revenue and costs for small businesses. We recommend it to independent contractors and other self-employed people who want basic bookkeeping and want to file their taxes.
The Best Uses for QuickBooks Self-Employed
- You can classify expenses with QB self-employed accounting software and, if necessary, send clients invoices. To make submitting your federal and state tax returns easier, it also provides support tax filing capabilities. Read our article on the best accounting software for freelancers for more information on other common accounting choices.
- Use the mobile app to create and send invoices using QuickBooks Self-Employed, as well as track business mileage, scan receipts, and categorize transactions that are imported from bank feeds. Our top selection for freelancers among the top mobile accounting apps is QuickBooks Self-Employed.
- The simple navigation and clear dashboard of QuickBooks Self-Employed make it simple for you to set up and utilize your account.
- If you drive for work or business, you may use QuickBooks Self-Employed to automatically track business miles and possible tax deductions.
You Can’t Use QuickBooks Self-Employed For
- The main target audience for QuickBooks Self-Employed is independent contractors and freelancers. It cannot be converted to a double-entry accounting system, such as QuickBooks Online, because it is a single-entry accounting system. Start with the QuickBooks Online Essentials package, which gives you a more scalable solution and the flexibility to add users if you anticipate your business expanding soon. Check out our comparison of QuickBooks Online to find the best choice for you.
- Every time you make an invoice in QuickBooks Self-Employed, you must enter the recipient and sales information because this software does not save customer, product, or service information. Check out our assessment of the top invoicing software if you require a strong invoicing solution. Because of its special ability to determine the sales tax rate automatically to apply to your invoice based on the location of your customer, QuickBooks Online received our top overall ranking.
- Wave, which we classified as one of the top multi-company accounting software applications, would be a better choice since QuickBooks Self-Employed does not support numerous firms. The Wave also has the advantage of being unrestrictedly free.
A Quick Look at QB Self-Employed Costs
The monthly cost of the three plans ranges from $15 to $35. Simple accounting software is provided by the less expensive option, while unlimited live accounting support is provided by the more robust package. Currently, QuickBooks provides a subscription plan’s first three months for a 50% discount.
The breakdown of the QuickBooks Self-Employed monthly costs is as follows:
- $15 monthly for self-employed people.
- Tax Bundle for Self-Employed: $25 monthly
- $35 monthly for the Self-Employed Live Tax Bundle
You can divide your work and personal spending with the Self-Employed plan. You can link your company credit card to the system to track transactions automatically. Your Schedule C deductions will be maximized, and the accounting software will also generate your quarterly tax estimations automatically.
The next step up is the Self-Employed Tax Bundle. The package includes a TurboTax subscription, allowing you to electronically file one state tax return and one federal tax return from your account. For those who want to link their accounting software and tax filing, this program is perfect.
If you want life insurance support, the Self-Employed Live Tax Bundle is the ideal choice. For an extra $11 per month, you can contact a CPA at any time of the year for limitless tax advice. A professional can also review your last tax return if you so like. This strategy works well for business owners who wish to have access to an accountant for assistance when needed.
Let’s Find Out QB Self-Employed Features
For a relatively low cost, QuickBooks Self-Employed offers a wide range of tools and features that make it an excellent helper for independent contractors.
Trial and test drive for one month:
Numerous tools are available in QuickBooks self-employed to assist you in managing your revenue and expenses. This tool comes with a one-month free trial and a test drive.
Transactions Classification:
By creating a category for personal expenses during the bank account opening, it is simple to divide your personal and business expenses. Any withdrawals from your bank account that aren’t for business purposes need to be classified as personal costs to avoid being taken out of your taxable income. As an alternative, you can create rules that will automatically assign and categorize transactions.
Mileage tracking software:
If you use a vehicle for business purposes, you can write down real vehicle costs or a set amount per mile. You can download the mileage tracker app from QuickBooks Self-Employed on your Android or iOS phone. It will automatically track every mile you drive for business purposes and keep track of how many miles you have driven so far, deducting the appropriate amount according to the IRS mileage rate.
Invoicing:
You can create and track invoices in QuickBooks Self-invoicing Employed’s section, as well as register to make the bills payable online. If you select that option, be aware that credit card payment rates are 2.9% plus 25 cents per transaction, whereas bank transfer transactions are free. When your invoice is finished, you can email a PDF attachment to your client.
Obtain quarterly federal tax estimates:
Based on the tax profile you fill out during setup, QuickBooks Self-Employed will predict your annual profit, determine your projected tax payment, and notify you of tax due dates. This useful tool aids in preventing you from incurring an underpayment fine for failing to make the appropriate quarterly anticipated tax payments. Just remember to consistently categorize your transactions and enter your business revenue.
Conclusion
It is better and more effective to manage all of your business transactions, send invoices, track mileage, and analyze profitability with QuickBooks’ Self-Employed solution. When it’s time to file tax returns and pay taxes, you don’t need to sort through a box of receipts or a spreadsheet that’s a mess because you never had the time to accurately record the data.
The best aspect is that the service also assists you in claiming any applicable deductions, which may be quite helpful for freelancers who are seeking methods to cut costs. For side hustlers, freelancers, business owners, and other people who require simple bookkeeping features, this package is the ideal option. Even for self-employed people, the price is surprisingly low, and there are frequently fantastic price discounts.
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