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What We Recommend QuickBooks Self-Employed For
QuickBooks Self-Employed is popular accounting software for managing business income and expenses, creating invoices on the fly, and tracking mileage. We recommend it for freelancers and other self-employed individuals who need federal tax support.
QuickBooks Self-Employed Is Good For
- Freelancers: QuickBooks Self-Employed has helpful features for freelancers, such as quarterly tax estimating, automatic mileage tracking, and mobile invoicing. Plus, the software is easy to use, with an intuitive dashboard. For other popular accounting options for freelancers, read our guide to the best accounting software for freelancers.
- Businesses that often work remotely: Create invoices, automatically track your business mileage, and view your profit and loss on the go with the QuickBooks Self-Employed mobile app. Choose QuickBooks Self-Employed or explore our other best mobile accounting apps.
- Businesses looking for easy-to-use software: QuickBooks Self-Employed’s uncluttered dashboard and intuitive navigation allow you to set up and use your account quickly.
QuickBooks Self-Employed Is Not a Good Fit For
- Growing businesses: QuickBooks Self-Employed is built primarily for freelancers and independent contractors. Since it is a single-entry accounting system, it cannot be rolled over to a double-entry accounting system, such as QuickBooks Online. If you envision your business growing in the near future, you could start with the QuickBooks Essentials plan which offers a more scalable option and the ability to add users. To determine the best option for you, check out our QuickBooks Online comparison.
- Frequent invoicing: QuickBooks Self-Employed doesn’t store customer, product, or service information, so you have to add the recipient and sales information every time you create an invoice. If you need a powerful invoicing solution, check out our review of the best invoicing software. We ranked FreshBooks as best overall because creating great-looking, professional invoices is its specialty.
- Entrepreneurs with more than one company: QuickBooks Self-Employed doesn’t allow for multiple companies, so a better option would be Sunrise, which we ranked as one of the best multi-company accounting software. Sunrise has the added benefit of being free forever.
Are you looking for something different? Read our guide to the best small business accounting software and check out our top picks.
QuickBooks Self-Employed Overview
| PROS | CONS |
|---|---|
| Separate business and personal expenses paid from the same bank account | No integrated payroll |
| Track mileage and expenses on the go | Lacks a balance sheet |
| Calculate quarterly estimated tax payments | Can’t track unpaid bills |
| Transfer Schedule C tax information to TurboTax (available in Self-Employed Live Tax Bundle) | Limited invoicing functionality |
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QuickBooks Self-Employed Pricing
QuickBooks Self-Employed has three pricing plans that range from $15 to $35 per month, depending on whether you want tax returns included and live tax assistance from an enrolled agent, certified public accountant (CPA), or lawyer. All of the plans include tracking of income and expenses, tracking of mileage using the mobile app, and invoicing customers.
Pricing & Features | Self-Employed | Self-Employed Tax Bundle | Self-Employed Live Tax Bundle |
|---|---|---|---|
Pricing ($/Month) | $15 | $25 | $35 |
Create Customer Invoices | ✔ | ✔ | ✔ |
Connect Bank & Credit Card Accounts to Import Transactions | ✔ | ✔ | ✔ |
Track Mileage | ✔ | ✔ | ✔ |
Separate Personal Expenses From Business Expenses | ✔ | ✔ | ✔ |
Calculate Quarterly Taxes Automatically | ✔ | ✔ | ✔ |
Pay Quarterly Estimated Taxes Online Directly From QuickBooks | N/A | ✔ | ✔ |
State & Federal Tax Return Filing | N/A | ✔ | ✔ |
Unlimited Live Help From TurboTax Tax Experts | N/A | N/A | ✔ |
TurboTax Tax Experts Can Review Your Final Return | N/A | N/A | ✔ |
QuickBooks Self-Employed Features
QuickBooks Self-Employed includes many features that help you organize your income and expenses. These features include the ability to track your mileage, connect your bank and credit card accounts, separate personal from business expenses, upload receipts, and print profit and loss (P&L) reports. However, while QuickBooks Self-Employed has P&L accounts, it doesn’t have a balance sheet or track assets and liabilities. Read QuickBooks Online vs Desktop for other great QuickBooks options that include complete financial statements.
The QuickBooks Self-Employed dashboard provides an overview of your important numbers, including profit and loss, expenses, accounts, invoices, mileage, and estimated tax.
QuickBooks Self-Employed’s dashboard
The QuickBooks Self-Employed dashboard has the following information:
- Left menu bar: Navigate to each area of the program using the left menu bar.
- Profit and loss: View total income and expenses for any timeframe you specify, such as this month, last month, this year, or last year.
- Expenses: View your total expenses for a specified timeframe.
- Accounts: View the current balance of all bank and credit card accounts.
- Invoices: View customer invoices owed to you.
- Mileage: View the total mileage recorded using the QuickBooks Self-Employed mileage tracker app.
- Estimated taxes: Review the estimated taxes you owe, based on an automatic calculation performed by QuickBooks Self-Employed based on the income and expenses you have recorded.
Here’s a quick overview of QuickBooks Self-Employed’s features:
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 will 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.
Here is a screenshot of the QuickBooks Self-Employed mileage tracker app:
QuickBooks Self-Employed Mileage Tracker App (Source: Intuit)
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 to the appropriate expense category or designate it as a personal expense:
Example of QuickBooks Self-Employed Bank Connections (Source: Intuit)
Invoicing
QuickBooks Self-Employed’s invoicing section allows you to generate and track invoices as well as sign up to make the invoices payable online. If you choose that option, be aware that while bank transfer transactions are free, credit card payment rates are 2.9% plus 25 cents per transaction:
Example of QuickBooks Self-Employed Invoicing (Source: Intuit)
Expense Categories
It’s easy to separate your business and personal expenses by setting up a category for personal expenses during the bank account setup. Any payments from your bank account not related to your business should be categorized as personal expenses so that they are not deducted on your tax return. QuickBooks Self-Employed makes this easy to do if you’re on a mobile device—swipe left for business and right for personal. You can also set rules to assign and categorize transactions automatically.
For example, if you pay your personal mortgage or rent from your business checking account, those transactions will be downloaded automatically into QuickBooks Self-Employed with your banking activity. It’s important that you classify the mortgage or rent payment as a personal expense so that it’s not deducted for tax purposes.
There is no law preventing a Schedule C business from paying personal expenses out of their business checking account, but an IRS audit will go much smoother 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 Top 9 Bookkeeping Tips.
Example of QuickBooks Self-Employed Transactions on Mobile App (Source: Intuit)
Receipt Capture
The QuickBooks Self-Employed mobile app for iPhone 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 provide the necessary documentation required by the IRS to deduct an expense.
Labs
Added in 2018, 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 “About You.” 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 it will allow you to 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.
Income and 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 out some of the guesswork when 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.
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 into TurboTax to complete your tax return. You should choose this plan if you prepare your own taxes.
Example of QuickBooks Self-Employed’s Integration with TurboTax (Source: Intuit)
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 does not 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 as a result of not making the required quarterly estimated tax payments. Be sure to stay up-to-date on categorizing your transactions and inputting your business income.
It is important to note that QuickBooks Self-Employed only offers federal quarterly tax estimates, so if your state collects income tax and also requires estimated quarterly payments, you will need to calculate that on your own:
Example of QuickBooks Self-Employed Quarterly Tax Calculation (Source: Intuit)
Quarterly Federal Tax Online Payment
While QuickBooks Self-Employed will calculate your quarterly tax liability, the Tax Bundle allows you to pay the quarterly tax online. QuickBooks Self-Employed Tax Bundle may help avoid a federal underpayment penalty but does not 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).
Customer Service and Ease of Use
QuickBooks Self-Employed has a newly-designed dashboard that is easy to navigate. It displays six charts that give you an instant view of your financial data. The tabs on the left side of the dashboard make it easy to explore the other features. Overall it is intuitive and not cluttered with unnecessary information, making it approachable for accounting novices.
Meanwhile, QuickBooks offers multiple customer support options, including a built-in live chat, video tutorials, a help center called Learn & Support, an in-software automated assistant, QuickBooks blogs, and a community forum.
QuickBooks Self-Employed Alternatives
Best for: Growing businesses that are looking for a scalable option | Best for: Creating professional-looking invoices | Best for: Entrepreneurs with multiple companies who are looking for a free option |
Software from: $25 | Software from: $15 | Software from: $0 |
Bottom Line
If you are a freelancer or solopreneur with no employees or contractors, QuickBooks Self-Employed was made for you. The ability to keep track of your deductions and use that information to complete your tax return is one of its many benefits. Instead of searching for receipts or brainstorming other potential tax write-offs, it provides all of your deduction data and removes the guesswork. The tax bundle plans allow you to file your state and local tax returns and also your quarterly estimated taxes.
QuickBooks Self-Employed is also an important tool if you’re looking to keep better track of your finances overall. If you are ready to ditch that Excel spreadsheet and get your income and expenses organized, sign up and receive 50% off the first three months.
