If you are an entrepreneur looking for a tool to manage your taxes and expenses through accounting software, QuickBooks Self-Employed is one of the best accounting software developed by Intuit. Businesses of all sizes can utilise it, and it is specifically made for independent contractors, freelancers, and sole proprietors. QuickBooks software not only manages your bills and spending but also automatically logs your mileage, makes it simple to pay taxes on a quarterly basis, creates financial reports, and even classify your expenses into Schedule C categories.
There has been a notable increase in the number of QuickBooks Self-Employed users, surpassing 360,000. Compared to the previous quarter’s 180000 growth, this one is substantially higher. In this article we understand QuickBooks Desktop Self-Employed: what it is, its features, its plans & cost, its pros and cons.
What is QuickBooks Self-Employed
QuickBooks Self-Employed has been simplified for business owners, freelancers, and contractors. Especially for those who include Schedule C with their income tax form, it focuses on fundamental accounting duties like keeping track of earnings and expenses, controlling mileage, and tax preparation. It’s a simpler, more streamlined version of QuickBooks Online, focusing on the core needs of a single-person business.
Features of QuickBooks Self-Employed
There are many types of features of QuickBooks Self-Employed which will help you to do the solo business:
Monitoring mileage: Business mileage is a significant, tax-deductible expense that is frequently not accurately reported. By simply clicking this feature a few times, users can monitor the tax and track mileage. To improve the accuracy of tracking, journeys can also be categorised as personal or business. This may have an impact on your tax deductions, especially if you are a delivery driver or ridesharing service employee.
Execute reports: Your tax summary and a list of your current tax information are both available on the report page. Your “Profit and Loss” report, which provides a thorough analysis of your earnings, outlays, assets, liabilities, and profit, can also be found here.
Invoicing: QuickBooks Self-Employed makes it easy to bill your clients.Users can create invoices easily from their laptop or phone with the help of this feature. They can directly send them from QuickBooks Self-Employed to text message or email. But the main issue with invoicing is that it can take a lot of time, and if you’re not careful, you might forget.
Plans and Pricing Of QuickBooks Self-Employed
There are basically three types of plans available:
- QuickBooks Self-Employed
- QuickBooks Self-Employed Tax Bundle
- QuickBooks Self-Employed LiveTax Bundle
| QuickBooks Self-Employed | QuickBooks Self-Employed Tax Bundle | QuickBooks Self-Employed LiveTax Bundle |
| $10 per month. | $15 per month | $20 per month |
| Help in calculating quarterly taxes. | Ability to pay taxes directly from QuickBooks. | Live, individualised guidance from Enrolled Agents (EAs) and Certified Public Accountants (CPAs) at TurboTax |
| Sort transactions into tax categories automatically. | Accurate estimates of quarterly taxes. | Unrestricted access to tax professionals with 15 years of experience throughout the year |
| Discover who you are each quarter before taxes are due. | Export Schedule C directly into the Turbo tax. | A CPA or EA to review your tax return and sign it |
QuickBooks Self-Employed Taxes
Freelancers and independent contractors use QuickBooks Self-Employed Taxes, which simplifies tax calculations and filing as well as cost monitoring. There are some self-employed
taxes:
Tax Forms: At the beginning of the year, the majority of businesses send out the tax form for the previous year to all employees. This principle also applies to individuals and independent contractors.
- 1099-MISC
- Form 1040( Schedule SE)
- Tax Form 1040
- Form 1040 ES
- Schedule C
Self-Employed Tax: It is determined by their annual Social Security and Medicare income. You are required to pay 17% of your income if you are working for yourself, and 7.9% of your income if you are an employee, with the employer covering the remaining 7.9%.
Deduction of taxes:
- Examples of tax deductions include the following:
- Auto Expenses
- Internet
- Utility Bills
- Marketing Expenses
- Office Supplies
Pros and Cons Of QuickBooks Self-Employed
Pros:
- User-friendly
- It helps in tracking mileage
- The software automatically syncs credit cards that are attached to it.
- Manage income and expenses for Schedule C
- Different options for pricing according to the plan
Cons:
- Invoices without your name, address, logo, etc. cannot be accommodated.
- It must be used as a separate tool for time-tracking because there isn’t an option for it.
Conclusion
For single proprietors, contractors, and independent contractors in need of a straightforward and user-friendly accounting software program, QuickBooks Self-Employed is a fantastic choice. It helps distinguish between personal and company accounts and streamlines chores like mileage tracking, cost tracking, and invoicing.Remember that QuickBooks Self-Employed is not a complete accounting program.