QuickBooks Self-Employed: A Comprehensive Overview of Online Accounting

 

Introduction

QuickBooks Self-Employed is an online accounting software designed for freelancers, solopreneurs, independent contractors, and sole proprietors. Apart from tracking your expenses and invoices, the software automatically calculates your mileage, enables you to pay your quarterly taxes easily, generates financial reports, and categorizes expenses according to Schedule C. This review discusses the various subscription options for QuickBooks Self-Employed, what each includes, and how QuickBooks compares to its competitors.

Table of Contents

Pros

• ·        User-friendly features
• ·        Hassle-free mileage tracking
• ·        Reasonably priced customized accounting assistance

Cons

• ·        Unsuitable for businesses experiencing rapid growth
• ·        Cannot be migrated to a system that uses double-entry accounting
• ·        Pricier than top competitors like Wave Accounting

Summary of QuickBooks Self-Employed

There are three subscription plans for QuickBooks, ranging from $15 to $35 per month. The most affordable plan provides basic accounting software, while the more expensive plan includes unlimited live support. At the moment, QuickBooks is offering a 50% discount on the first three months of any subscription plan. QuickBooks Self-Employed has monthly fees that are structured as follows: 

• ·        the monthly cost is $15
• ·        for the basic tax package$25
• ·        for the tax bundle, and $35 for the live tax bundle.

The Self-Employed plan enables you to distinguish between your business and personal expenses. By connecting your business credit card, transactions will be automatically tracked. Additionally, the accounting software will assist you in maximizing your Schedule C deductions and will calculate your quarterly tax estimates on your behalf.

1. TurboTax subscription

The Self-Employed Tax Bundle is one level higher. It includes a TurboTax subscription that allows you to file one state tax return and a federal tax return directly from your account. This plan is ideal for those who want to combine their tax filing with their accounting software.

2. Live Tax Bundle

For those seeking live tax support, the Self-Employed Live Tax Bundle is the ideal choice. With an additional $11 per month, you can enjoy unlimited access to a CPA who will be available to answer your tax questions throughout the year. Moreover, you will have the opportunity to have your final tax return reviewed by a professional. For business owners seeking assistance from an accountant when inquiries arise, this plan is ideal.

Other Benefits

• QuickBooks offers seamless integration with over 650 business apps such as PayPal, Square, and Gusto to simplify your accounting process.
• Additionally, QuickBooks Self-Employed allows you to create custom expense tags for better tracking of your expenditures in different categories.
• This feature enables you to generate reports that highlight your spending and earnings across various areas.

Fine print

QuickBooks provides a variety of software options, so it's crucial to select the one that best fits your business needs.

• QuickBooks Self-Employed does not provide double-entry accounting, which is a more precise method that can help avoid accounting mistakes.

If you foresee your business expanding, consider starting with QuickBooks Online, which includes this feature and is designed for use by multiple people.

QuickBooks Self-Employed Suitable for Your Needs or Company

• QuickBooks Self-Employed is ideal for freelancers, solopreneurs, and consultants who require an easy-to-use online accounting tool to manage their business finances.

However, it may not be the most cost-effective option compared to free services like Wave. Therefore, it is best suited for business owners who need a mileage tracker or the ability to consult with a CPA on financial matters as they arise in real-time.

FAQs

Q1. Difference between QuickBooks and QuickBooks Self-Employed?

QuickBooks Self-Employed is a program specifically designed for freelancers, solopreneurs, and independent contractors who need assistance in separating their business and personal expenses, as well as basic accounting and invoicing capabilities.

On the other hand, QuickBooks Online is a separate service that caters to small business owners who require more extensive features, including double-entry accounting.

Q2. Is there a cost associated with using QuickBooks Self-Employed?

Yes, QuickBooks Self-Employed has a monthly cost ranging from $15 to $35. At the moment, there is a promotion offering 50% off the first three months for all new users.

Q3. Is it possible to utilize QuickBooks without having a business?

Yes, QuickBooks can be used for managing personal expenses like groceries and household bills.