Quickbooks is an awarded accounting application that makes accounting for your company much easier. Yet, Intuit (the company that creates Quickbooks) provide so many Quickbooks versions that it is difficult for you to choose the right version. Each package provides a different list of features and benefits, so choosing the right plan depends on your business goals and operation. In this article, we will help you to compare Quickbooks versions and choose the best Quickbooks package for your business.
There are three main categories of Quickbooks products, along with several add-ons that add more function to the base Quickbooks app. These include Quickbooks Self employed, Quickbooks Online, Quickbooks Desktop, and services such as Quickbooks Payment, Quickbooks Payroll, etc.
Quickbooks self employed review (QBSE)
QuickBooks Self employed is an online edition that’s designed for freelancers and independent contractors. It helps you pay to create professional invoices to send to your customers, estimated quarterly taxes, categorize your expenses to match those on your Schedule C tax form, and track your self-employment income and expenses.
+ Send professional invoices to customers anywhere you go: With Quickbooks Self employed, you can easily prepare a professional looking invoice with proper layout and format in just a few steps. Send it to your clients on the go with your smart phone. No need to turn on your desktop computer or anything.
+ Track and manage invoices: you can easily track your invoices, see which invoices have been sent, which ones are still open and send customers overdue notifications.
+ Get paid fast with Quickbooks Payment: You can easily invoice your customers and give them multiple options to pay you – through ACH transfer, debit cards or credit cards.
+ Auto import bank transactions: QBSE will automatically import transactions from bank account or credit cards for you. Freelancers and sole proprietors are too busy working with different customers, and lack the time to keep track of payments. Quickbooks helps you to record all bank transactions, helping save a ton of time.
+ Keep personal and business transactions separated: Once transactions are imported to your account, you need to categorize them. Since self employed individuals mix their business and personal transactions, it is hard for them to keep track of their cash flows. Quickbooks Self employed is built to help you easily divide your transactions between personal and business activities. Just click either button “Personal” or “Business” and you’re ready to go. You can create rules so Quickbooks will help you perform this task for later transactions. For example, you can always include “Health & Fitness” expenses into personal expense group.
+ Auto-categorize transaction: Quickbooks Self employed is smart enough to recognize which category your expenses belong to (based on the description of the transactions and the vendors and customers in Quickbooks’s database). The app will group your transactions according to categories in Schedule C. You can create Transaction Rules so when any transaction is made, it will be auto grouped into the preset category. Therefore, the more transactions you have, the more time you will be able to save.
+ Easy tax tracking and calculation: Quickbooks Self employed offers you to set up your own tax profile. You just need to fill it out once so that Quickbooks will calculate quarter taxes for you more accurately. For example, tax calculation will change based on your Marital Status: Single or Married, the number of dependents in your family, etc. With QBSE, you no longer need to ask for advice from an accountant to get an accurate calculation of your taxes
+ Mileage tracking: This feature is useful for freelancers that travel a great distance for their projects, or hold a lot of offline meeting with their clients. QBSE will help you to log your travel miles and categorize them into different trips. You can add your mileage based on your vehicle’s odometer or use the iOS for automatic tracking and logging.
+ Prepare reports and export transactions to file: Once you have categorized you revenues and costs, set up your tax profile, added your mileage, you are ready to prepare a report to see how you are doing financially. QBSE allows you to print out financial reports or exports your transaction to a spreadsheet. Currently, you can create three types of reports with QBSE:
– Income Statement: This reports will list out all your revenues and expenses and calculate your bottom line to see if you are making a profit or making a loss.
– Tax summary: This report will summarize your revenues and deductions to come up with your taxable profit. It also provides you with a total of your spending and deductions in Schedule C and healthcare categories. The summary is in PDF form.
– Tax detail: This report offers more detail than the tax summary, with detailed transactions in different categories.
Tax bundle: This is an additional feature that helps customers to pay their taxes even more easily! With tax bundle, customers will be able to pay their quarterly taxes online and submit the Schedule C form online for free. It saves you all the hassle at a really small cost.
Quickbooks Self Employed Pricing
Quickbooks Self employed: for $5 a month, you get access to all the function above – keeping track of your personal and business incomes and expenses, categorize your revenues and expenses, auto fill in your Schedule C tax form and calculate your taxable profit, prepare profit reports and tax reports.
Quickbooks Self employed Tax Bundle: for $12 a month, you will gain additional access to TurboTax service, which allow you to file in your tax form even faster by doing it online, and pay your quarter taxes online.
Should i use Quickbooks Self Employed?
Of courses, there are several limitations that come with Quickbooks Self Employed:
- You cannot sell physical products since it does not support inventory management.
- Only allow 1 user account access at a time.
Despite some limitations, with so many features that help you work clients on the go, manage your personal and business taxes, Quickbooks Self Employed is a must have tool for Freelancers and One Man Businesses
To sum up , using Quickbooks Self employed allows you to:
- Easily invoices customer on the go
- Track and manage your invoice
- Get paid faster with Quickbooks payment
- Auto import transaction
- Track and calculate your taxes
- Track your mileage
- Prepare income statements and tax reports
On the next part, we will give you a Quickbooks Online review, the pros and cons of using it.