QuickBooks Self-Employed Review: Features & Pricing in 2023
This article is part of a larger series on Accounting Software.
QuickBooks Self-Employed Review
What We Like
- Separate business and personal expenses paid from the same bank account
- Track mileage and expenses on the go
- Calculate quarterly estimated tax payments
- Transfer Schedule C tax information to TurboTax (available in Self-Employed Live Tax Bundle)
What's Missing
- Doesn’t accommodate multiple businesses
- Lacks a balance sheet
- Can’t track unpaid bills
- Limited invoicing functionality
- No integrated payroll
Visit QuickBooks Self-Employed
If you think QuickBooks Self-Employed isn’t suitable, check out our top recommendations for the best accounting software for small businesses.
QuickBooks Self-Employed Deciding Factors
Supported Business Types | Freelancers and other self-employed individuals needing basic bookkeeping and federal tax support |
Pricing |
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Free Trial | You can try QuickBooks Self-Employed for 30 days for free. |
Discount | If you choose to buy now (without signing up for a free trial), then you’ll receive a 50% discount for three months. |
Standout Features |
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Customer Support | Phone support (callback only) live chat, support tickets, Help Center, blogs, and social media channels |
QuickBooks Self-Employed New Feature for 2023
- Tag setup: You can use customized tags to sort transactions based on key metrics that are important to your business. For instance, if you want to track more details about your locations, you can set up tags, such as a specific business site or region.
QuickBooks Self-Employed Alternatives
Best for: Small and medium-sized businesses (SMBs) | Best for: Entrepreneurs with multiple businesses | Best for: Companies with many employees |
Cost: Starts at $30 per month | Cost: $0; only charges for financial transactions, such as payroll and bank payments | Cost: $0 or $19.99 per month |
QuickBooks Self-Employed Pricing
QuickBooks Self-Employed has three pricing plans that range from $15 to $35 per month:
- Self-Employed: $15 per month
- Self-Employed Tax Bundle: $25 per month
- Self-Employed Live Tax Bundle: $35 per month
All subscriptions include income and expense tracking, business mileage tracking invoicing, and a mobile app. If you want to file one state and one federal tax returns and pay quarterly estimated taxes online, you need at least the Self-Employed Tax Bundle. If you need unlimited live help from TurboTax experts or to talk to a real CPA when needed, you should upgrade to the Self-Employed Live Tax Bundle.
QuickBooks Self-Employed Features
While QuickBooks Self-Employed doesn’t have a balance sheet and can’t track assets and liabilities, it includes many features that help you organize your income and expenses.
Dashboard
The dashboard includes a left navigation bar where you can access its features, including income and expense entry, tax tracking, invoicing, and reporting. It also shows important numbers, including your profit and loss, expenses, accounts, invoices, mileage, and estimated taxes.
QuickBooks Self-Employed’s dashboard
Income & Expense Tracking
You can categorize the transactions downloaded from your bank account or those that you have entered in QuickBooks Self-Employed manually from the Transactions menu. When an income or expense is recorded, you can mark it easily as personal or business.
If you are using the desktop interface, click the transaction entry you wish to categorize. Then, select the Mark as business or Mark as personal button in the top menu bar of the Transactions screen, as shown below.
Categorizing transactions as business or personal (desktop interface)
An easier way to categorize your transactions is by using the mobile app. You can categorize your expenses with a swipe—swipe left to categorize it as business and swipe right for personal.
Tip: Any payments from your bank account not related to your business should be categorized as personal expenses so that they aren’t deducted from your tax return. For example, you will want to classify a mortgage or rent payment as a personal expense.
There’s no law preventing a Schedule C business from paying personal expenses out of their business checking account—but an IRS audit will go much more smoothly if you keep personal activity out of your business. It’s better to keep business and personal activity in separate checking accounts with a periodic transfer from your business checking account to your personal account as needed for personal expenses. For other helpful tips, see our bookkeeping and accounting tips for small businesses.
Income & Expense Summary Printing
QuickBooks Self-Employed allows you to classify income and expenses using categories that align with the IRS Schedule C, such as utilities, legal fees, and commissions. Once this information is entered, you can view and print a summary of your taxable income and expenses, which can take some of the guesswork out of filing your taxes. If your plan doesn’t include the Tax Bundle, you can use this summary to input your Schedule C information into a tax program of your choice manually.
Mileage Tracking
If you drive for business reasons, you can deduct a standard rate per mile or actual vehicle expenses. QuickBooks Self-Employed has a mileage tracker app that you can download on your Android or iOS phone. It’ll log all of your car travel automatically and keep a running tally of your business miles, calculating the corresponding deduction at the current IRS mileage rate.
Bank Feeds
You can download your bank and credit card transactions directly into your QuickBooks Self-Employed account. From there, you can categorize each transaction into the appropriate expense category or designate it as a personal expense.
Invoicing
QuickBooks Self-Employed’s invoicing feature allows you to generate and track invoices. It also lets you sign up to make the invoices payable online—and if you choose this option, be aware that while bank transfer transactions are free, credit card payment rates are 2.9% plus 25 cents per transaction. Once your invoice is completed, you can email it to your customer as a PDF attachment. You can also send invoices through the mobile app.
Compared to invoices in QuickBooks Online, invoices in QuickBooks Self-Employed are not that customizable. While you can upload your logo and change the font color, there are no templates to choose from. Here’s an email and PDF preview of a sample invoice in QuickBooks Self-Employed.
PDF and email preview of a sample invoice in QuickBooks Self-Employed
Tip: If you don’t see the Invoicing feature in your dashboard, then you need to enable it by toggling the invoicing button to on under Settings (gear icon).
Receipt Capture
The QuickBooks Self-Employed mobile app for iOS and Android allows you to take a picture of a receipt and attach it to a transaction directly from your mobile phone. Not only will this save you time, but it will also provide the documentation required by the IRS to deduct an expense.
Labs
QuickBooks Self-Employed Labs is a place where Intuit experiments with new features. It can be accessed by clicking the gear icon on the desktop site and then selecting “Labs” under TOOLS.
You’ll be able to view the latest integration and innovations available for you to opt into, such as its integration with Amazon. When you link your Amazon account to QuickBooks Self-Employed, you can label individual items in your order as business or personal without having to calculate the split yourself. Other items featured in the lab include custom color-coded tabs and the ability to import mileage trips from Google.
Schedule C Import to TurboTax
The QuickBooks Self-Employed Tax Bundle includes a subscription to TurboTax. You can transfer all of your Schedule C information automatically to TurboTax to complete your tax return. You should choose this plan if you prepare your own taxes.
Federal & State Tax Filing
QuickBooks Self-Employed Tax Bundle includes both a federal and state tax return for $120 per year ($10 per month extra). Purchased separately, TurboTax Self-Employed is $120 and doesn’t include the state return.
Quarterly Federal Tax Payment Calculation
Based on the tax profile that you complete during setup, QuickBooks Self-Employed will project your annual profit, calculate your estimated tax payment, and alert you of tax due dates. This valuable tool helps protect you from an underpayment penalty because of not making the required quarterly estimated tax payments. Just be sure to stay up to date on categorizing your transactions and inputting your business income.
It’s important to note that QuickBooks Self-Employed only offers federal quarterly tax estimates. So, if your state collects income tax and requires estimated quarterly payments, then you’ll need to calculate that on your own.
Quarterly Federal Tax Online Payment
The platform will calculate your quarterly tax liability, and the QuickBooks Self-Employed Tax Bundle allows you to pay the quarterly tax online. I5 may help avoid a federal underpayment penalty but doesn’t include state-estimated tax payments, which might be due, depending upon where you live. Remember that to pay your federal quarterly taxes through QuickBooks Self-Employed, you need to sign up for the Electronic Federal Tax Payment System (EFTPS).
QuickBooks Self-Employed Customer Service & Ease of Use
QuickBooks Self-Employed has an intuitive dashboard that’s easy to navigate. The tabs on the left side of the dashboard make it easy to explore the other features. Overall, it’s intuitive and not cluttered with unnecessary information, making it approachable for accounting novices. When setting up your account for the first time, you can choose to connect your bank account or manually enter transactions.
Add transactions manually or connect your bank accounts
Meanwhile, QuickBooks offers multiple customer support options. These include QuickBooks blogs, video tutorials, a built-in live chat, a help center called Learn & Support, a community forum, and an in-software automated assistant.
QuickBooks Self-Employed Integrations
QuickBooks Self-Employed has limited integrations. It connects with third-party software programs like PayPal and Etsy and other Intuit products such as QuickBooks Online, QuickBooks Payments, and TurboTax.
QuickBooks Self-Employed Assisted Bookkeeping
As a freelancer, you might not have enough time or expertise to execute all your bookkeeping tasks. While QuickBooks Self-Employed users may not deal with intensive bookkeeping, you might still need help with minor tasks like connecting bank accounts and categorizing income and expenses. If needed, you can enlist a QuickBooks ProAdvisor to help you with your bookkeeping duties.
If you need help from a professional bookkeeper, read our guide on how to find a QuickBooks ProAdvisor.
QuickBooks Self-Employed User Reviews
Most of the positive QuickBooks Self-Employed reviews are about its intuitive user interface. Many users like that they can instantly add new transactions and that the software guides them when filing taxes. On the other hand, some wish that it had more features, like recurring invoices and the ability to send estimates. We agree its invoicing features are very limited and suggest QuickBooks Online if you regularly send invoices to customers.
Below are QuickBooks Self-Employed’s ratings from popular review websites:
- Software Advice: 3.79 out of 5 based on more than 70 reviews
- TrustRadius: 6.8 out of 10 based on about 50 reviews
Frequently Asked Questions (FAQs)
Is QuickBooks Self-Employed scalable?
No, it isn’t, as it lacks multiple tiers that you can scale with. When your business and accounting needs grow, you need to switch to a different solution, like QuickBooks Online.
Is QuickBooks Self-Employed easy to use?
Yes, it is. The cloud-based software has a streamlined interface that’s easy to navigate. It uses simple language and doesn’t have unnecessary features, so it takes very little time to get acquainted with it.
What are the top QuickBooks Self-Employed alternatives?
If you want a more scalable and sophisticated accounting solution, you can choose from our top-recommended small business accounting software, including QuickBooks Online, FreshBooks, and Xero.
Bottom Line
QuickBooks Self-Employed isn’t a true double-entry accounting program like QuickBooks Online, but its lack of features makes it very easy to use. It has an excellent mobile app that can serve modern freelancers in terms of invoicing their clients, tracking business mileage, and monitoring business expenses. It’s a good choice to monitor your deductions and uses that information to complete your tax return.
If you’re a freelancer needing a solid solution for tracking income and expenses, sign up and receive 50% off the first three months. However, if you anticipate outgrowing QuickBooks Self-Employed, we suggest that you go straight to QuickBooks Online.