The QuickBooks Self-Employed user base has increased and has witnessed a significant rise of more than 360000 users. This growth is significantly higher than the last quarter of 180000. Not to mention, it marks a significant jump from 75000 just a year ago.
Let us begin by understanding what QuickBooks Self-Employed is all about.
What is QuickBooks Self-Employed?
QuickBooks Self-Employed is a type of cloud-based accounting software, customized for sole proprietors, freelancers, and individual contractors.
Furthermore, it authorizes self-employed individuals to manage their finances with this robust accounting tool. Entrepreneurs can easily handle their income, monitor mileage, track expenses, pay taxes, and send invoices online with the help of the software. It also classifies expenses and monitors deductions to assist them to be systemized.
Additionally, the advanced analytics of the software offers insights into future tax liability and cash flow, allowing business owners to make informed decisions for their organizations with ease and perfection.
Not to mention, the users can use all their financial details from any system at any time, transforming QuickBooks Self-Employed into the perfect choice for those who wish to handle their businesses with ease while being on the move constantly.
What are the Prime Features of QuickBooks Self-Employed?
Here is the list of the key features of QuickBooks Self-Employed:
- Mileage Monitoring: Users can monitor their mileage for tax by just clicking this feature a few times. It is also possible to classify trips as personal or business for increased monitoring accuracy.
- Invoicing: Users can prepare professional invoices easily from their laptop or phone with the help of this feature and post that sends them from QuickBooks Self-Employed directly through text message or email in a few minutes.
- Bank Connectivity: QuickBooks Self-Employed enables users to link their bank accounts to the software directly, to enable them to easily and quickly handle their financial transactions and keep them in one place.
- Automated Tax Calculations: QuickBooks Self-Employed comprises tax evaluations to enable the users to learn how much taxes are outstanding at any particular time in the year. This assists them to be organized and follow the rules of the IRS always.
- Financial Reporting: With the help of this feature, users can always issue reports on their expenses and income over any particular period.
How to Begin with QuickBooks Self-Employed?
Here are the steps to get started with QuickBooks Self-Employed:
- Begin by Setting up a QuickBooks Self-Employed Account. It can be done by going to the QuickBooks website and then signing up for a new account.
- After Your Account is Set up, Link Your Bank Accounts along with the Credit Cards with QuickBooks Self-Employed. This will enable the software to import your financial transactions automatically.
- Classify Your Income and Expenses. QuickBooks Self-Employed provides pre-set Categories, however, you can also prepare your personalized categories. Ensure to classify your transactions for precise reporting and tax purposes.
- Access the Invoicing Feature to Prepare and Send Professional Invoices to Your Particular Clients. You can personalize the invoice templates with your specific logo plus branding and easily monitor when payments are pending.
- Monitor Your Mileage with the QuickBooks Self-Employed Mileage Monitoring Feature. It is highly useful for self-employed individuals who wish to remove their business mileage for tax purposes.
- Issue Reports and Determine the Financial Health of Your Business. QuickBooks Self-Employed provides several reports comprising expense reports, Profit and Loss statements, and tax reports.
- Use the Tax Features in QuickBooks Self-Employed. This particular software can assist you in determining your quarterly tax payments and monitoring your deductible expenses, making tax payments very easy.
- QuickBooks Self-Employed Mobile App. The QuickBooks Self-Employed software has a desktop version along with a mobile application that enables you to handle your finances with ease.
- Including QuickBooks Self-Employed with the Software and other Tools you use. QuickBooks Self-Employed provides integrations with renowned platforms, enabling you to simplify your business processes.
What are the Benefits and Drawbacks of QuickBooks Self-Employed?
Here is the list of the benefits and drawbacks of using QuickBooks Self-Employed:
| Advantages | Disadvantages |
| Proficient Expense Tracking | Limited Integration options |
| Streamlined Tax Preparation | Scalability Problems |
| Effortless and User-friendly Interface | Restricted Functionality for Bigger Business Enterprises |
| Simplified Invoicing and Payment Management | Subscription Pricing Issues |
| Automated Mileage Monitoring | Absence of Double-entry Accounting |
What are the key differences between QuickBooks Self-Employed and QuickBooks Online?
QuickBooks Self-Employed is created for independent contractors and freelancers, while QuickBooks Online is an all-inclusive accounting solution for small business enterprises.
Here is a brief overview of the key differences between the two versions of QuickBooks accounting software.
| Features | QuickBooks Self-Employed | QuickBooks Online |
| Cost | USD 20/month | Begain at USD 35/month |
| Characteristics | Simple Bookkeeping Tools Invoice Preparation Mileage Monitoring Predicted Tax Calculation Tax Preparation Integration With TurboTax | Improved Bookkeeping Tools Invoice Preparation Inventory Management Time-Monitoring Payroll Project Management |
| Customer Support | Phone and Email Support | Phone, Email and Chat Support |
| Best For | Phone, Email, and Chat Support | For Small Business Owners |
| Number of Users | 1 | 1-30 |
| Integrations | TurboTax Self-Employed, PayPal, Stripe, QuickBooks Payments | Shopify, Stripe, Xero, PayPal, QuickBooks Payments and More |
What are the key differences between QuickBooks Self-Employed and QuickBooks Simple Start?
For independent contractors and self-employed people looking for basic tools for billing, managing expenses, and preparing taxes, QuickBooks Self-Employed is designed to meet their needs.
QuickBooks Simple Start, on the other hand, is appropriate for small businesses that need more refined capabilities, such as thorough cost tracking, invoicing, tax reporting, and scalability for future growth.
Here is a table to discuss striking differences between QuickBooks Self-Employed and QuickBooks Simple Start:
| Features | QuickBooks Self-Employed | QuickBooks Simple Start |
| Number of Users | 1 | 1-2 |
| Integration | Stripe, TurboTax Self-Employed, PayPal and QuickBooks Payments | Xero, Shopify, PayPal, Stripe |
| Customer Support | Phone and Email Support | Phone, Email and Chat Support |
| Price | USD 20/month | USD 35/month |
| Features | Simple Bookkeeping Tools | All Features of QuickBooks Self-Employed, Plus Additional Features |
How to Migrate and Upgrade to QuickBooks Online from QuickBooks Self-Employed?
Here are the steps to migrate and upgrade to QuickBooks Online from QuickBooks Self-Employed:
Step 1: Save Your Financial Reports
You need to download all your work from QuickBooks Self-Employed so that there is an additional copy for safety purposes.
- Navigate to Reports
- Now from the Tax Details section, choose a tax year
- Choose Download
- Now download a report for every year that you have in QuickBooks
- Repeat the particular steps for your Profit and Loss, Receipts, and Mileage Log
Copy Data to QuickBooks Online
In case you copy your data to QuickBooks Online, it is not possible to get back to QuickBooks Self-Employed. If you wish to copy it, implement the steps on a system:
- Navigate to Settings. Now from the Profile column choose the Upgrade option
- Now opt for a plan on the one which you like
- Check the changes in features and then choose Sounds Good
- In case you want to copy your data to QuickBooks Online, choose Bring My Data. In case you do not want to copy your data to QuickBooks Online, choose Start Fresh
Note: If you select to bring your data, implement the steps to classify open transactions and then mark the invoices that are paid.
- Check the data summary that you want to shift to QuickBooks Online
- Choose Continue and then select To QuickBooks Online
- Now press twice your payment method and then choose Change Plan. If you wish to change your payment procedure, choose Edit
- Confirm some details about your particular business to begin using QuickBooks Online
QuickBooks Self-Employed is a trustworthy companion on your independent contractor journey. It offers calmness of mind in addition to effective money management.
When you decide to take the leap into entrepreneurship, you will be glad you did. QuickBooks Self-Employed is a reliable partner that will help you enhance and simplify your experience working for yourself.
We hope that after reading this article, all your queries regarding QuickBooks Self-Employed for your business have been resolved. Still, if you have any queries, you need to get in touch with our team of experts.
Frequently Asked Questions
Ques: Is it Possible to have more than One Business on QuickBooks Self-Employed?
Ans: No. It is not possible to have more than one business on QuickBooks Self-Employed. One QuickBooks Online or QuickBooks Self-Employed is for one company file only. You need to sign up for a new QuickBooks Self-Employed account with a different email address to begin.
Ques: How does QuickBooks Self-Employed vary from other QuickBooks Versions?
Ans: QuickBooks Self-Employed is only accessible by one user and is intended for individual use. QuickBooks, on the other hand, is better suited for small firms that work as a team because it supports many users.
Ques: Is it Possible to include my Accountant, Bookkeeper, or Tax Professional?
Ans: Yes. You can give out a complimentary invitation to any accountant for collaboration. After accepting the invitation, they will be able to operate on your account. You have the option to cancel their access any time you want.
Ques: What is the price of QuickBooks for Self-Employed?
Ans: QuickBooks for Self-Employed has three types of pricing plans:
- Self-Employed Tax Bundle: USD 25 per month
- Basic Self-Employed: USD15 per month
- Self-Employed Live Tax Bundle: USD35 per month
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