Accounting Software Alternatives for Independent Musicians

Independent musicians require efficient finance management based on the needs of the music industry. There are approximately thirty different tax […]

Independent musicians require efficient finance management based on the needs of the music industry. There are approximately thirty different tax deductions solely for music professionals. Managing all these taxes and accounts manually while focusing on creative and dynamic musical activities can be quite challenging. However, with able guidance and adequate knowledge, these liabilities and expenses can be easily managed. Therefore, independent musicians can use alternative account software to manage their finances.

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In this article, you are about to learn the way the best and most popular account software can be used, its benefits, and the process of using its systems. But before we begin about the software, you must know the factors to consider before selecting account software for managing your finances. So, let us dive in!

What are the Factors to Consider while Selecting Account Software?

Some of the key factors that you should keep in mind when you are selecting account software are as follows:

• Features Specific to the Industry

Account software is abundant in the finance market and helps users accumulate their income and expense details and manage them. However, you must observe whether your chosen software provides the features specific to your desired industry. Professional musicians should search for software that has features tailored to the requirements of musicians and other music industry professionals.

• Ease of Application

The more a software is user-friendly, the more selective it is. Complex system interfaces are challenging to operate and can lead to frustration and loss of time. As an independent musician, your hands are already full as you immerse in creativity.

However, excessive focus on managing accounts can affect your productivity and lead you astray. Thus, find software that is easy to use when you manage your finances and can save you time.

• Integration with different Platforms

Platforms such as payment gateways or music streaming services must integrate your account managing software. Make sure that your chosen software integrates with the mentioned platforms. It helps in streamlining your finance management process and amalgamates all your financial data in one place.

• Cost

Cost is a big factor for all musicians or account users. It is essential to check your budget before engaging with such software. Calculate and note whether the applications are within your budget. You can check the various pricing plans that some accounting software offers. Compare them and make your decision as per your requirements.

• Adequate Customer Support

Not everyone is exceptional in managing software. In this regard, we turn to customer support provided by software companies. Make sure that you find account software that has a reliable customer support team. With the help of good customer support, you can manage to save time and mitigate the problems related to the software swiftly and efficiently.

Which is the best Account Software Alternative for Independent Musicians?

Among several software available the most well-known and popular account software alternative for independent musicians in the market is QuickBooks Self-Employed.

The software is highly preferred by music industry professionals because of its comprehensive features and user-friendly interface. It can help you track your expenses and income, form invoices, and manage tax deductions related to music.

Apart from that, it has tools such as automatic mileage tracking, organizing digital receipts, and basic accounting reports. By directly connecting your bank with the software, you can easily manage the categorized transactions.

What are the Benefits of using QuickBooks Self-Employed?

The pros of using QuickBooks Self-Employed are as follows:

Easy of Tracking and Categorizing Expenses

QuickBooks Self-Employed enables users to track their transactions, income, and expenses automatically. This feature ensures that users save time and work swiftly.

Invoicing Creation Tool

Several transactions occur in the music industry. Especially as an independent musician or band, you are required to focus on the transactions that are associated with your work. QuickBooks Self-Employed has an invoice creation tool that will ensure you track your transactions more clearly.

Creation of Rules to Manage Transactions

One of the best features of this software is that you can create new rules based on your requirements. You can form rules for different types of transactions depending on their type and reduce your workload. The automatic transaction system will adeptly track and allow your transactions, which will help create rapport with your partners!

Mobile App

The software is also available on mobile devices. In this way, you will not need to carry your laptop or require a PC to manage your account. You can simply check your progress on your smartphone.

How can You use Different Systems in the Software?

QuickBooks Self-Employed has several systems that enable musicians to track their financial expenses. Beginners should follow the steps below to start using the software efficiently.

Managing Transactions

As a cash-based system, all expenses and payments should be entered manually. However, as hard and time-consuming as it sounds, it is not. You can do the following to quickly complete the work.

  • Go to Transactions, and click on Add Transactions.
  • Choose the transaction type, that is, either a business income or a business expense.
  • Now, Enter the preferred description of the transaction, the total, and the category of the transaction.
  • Press Save for the completion of the process.

Once the process is saved, you can see your total income along with your profit or loss reports on the home page.

Tracking Mileage

Business mileage is an essential tax-deductible expense, which is incorrectly recorded most of the time. If you are not claiming the correct transport expenses, you could end up paying more tax than you require.

Both the software and the mobile application help in solving this problem as they allow you to enter your business trips manually. For that, you need to enter your start and end addresses. Alternatively, you can start automatic tracking in the application as well.

  • Go to the Menu icon in the mobile app.
  • Tap the Mileage option.
  • Select Auto-tracking and turn it on.
  • Authorize the app to use your location if you are enabling the feature for the first time.

Note: The later steps are different for Android and Apple devices.

For Android

  • Select Allow and then Allow all the time (for Android OS version 10 and below); select Allow in settings and then Allow all the time (for Android OS version and above).

For Apple

  • Choose Allow Once.
  • Visit the Settings on the device.
  • Select Privacy and choose Location Services.
  • Search for and select the QuickBooks Self-Employed app.
  • Now, choose Always.

Handling Invoices

You can track your payments easily as you handle the invoices in the QuickBooks Self-Employed.

However, you need to create a new invoice manually every time you mark an invoice Paid.

  • Go to Create Invoice at the screen top.
  • Enter your client’s name in the Client Name box.
  • Add details of the client such as email address and contact information.
  • Click on Add Work, enter the job details, and choose the hourly or flat rate.
  • Now, Enter a cash value and press Add to Invoice.
  • Input your preferred payment instructions in the box and click Send Invoice.

You can also save the draft and use it in other invoices. Once you receive a payment, go to the invoices page and select Mark as paid.

There are several other tools that are included in the software.

Being self-employed, especially if you are in a creative industry, does not leave too much time to focus on account and administrative management. Using accounting software eases the challenges and ensures effective management of finances. The application of QuickBooks Self-Employed can help you focus on your work more than your transactions, income, and expenses. You can save time and receive accurate data related to your earnings. Moreover, the software ensures that your tax filings are appropriately managed.

The article gives you a detailed insight about the QuickBooks Self-Employed, a software designed for self-employed individuals and can alternatively be used by independent musicians as well. however, if you are still not clear about the use of this software, feel free to contact our professionals.

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Frequently Asked Questions

How is Accounting Software helpful in Music?

Accounting software can help musicians get royalties and manage their financial activities. They generate financial reports, sync financial data, promote data accuracy, produce professional-looking financial statements, give detailed insights, and streamline tax filings.

In other words, they help musicians take care of the areas they cannot focus on due to their actual work, that is, creating music.

How many Taxes are Associated with the Music Industry?

There are approximately thirty different taxes related to the music industry. You can check them on the web for a detailed understanding of the taxes.

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