http://www.dyernews.com/quickbooks-self-employed-review/ If you’re a freelancer, Uber driver, or self-employed in some other capacity, one thing you might not be prepared for is keeping track of your business finances. While the day to day might seem easy enough — money comes in, money goes out — being unorganized can come back to bite you hard come tax time. That’s what I signed up for Quickbooks Self-Employed (QBSE) about a year ago and am here to share my full review.
Quickbooks Self-Employed Review http://www.dyernews.com/quickbooks-self-employed-review/
Should You Be Paying Quarterly Estimated Taxes?
Note: the sale mentioned in this video was accurate as of publication but is subject to change.
Quickbooks Self-Employed includes five main sections:
In Transactions, you can review all of your purchases via various debit, credit cards, or even add in cash payments. From there, you can denote whether each purchase was personal or for business. Additionally, you can transaction between multiple codes. On the Quickbooks app, you can even do this on the go, categorizing transactions by swiping left or right.
For business transactions, you can further categorize your spending. This will come in handy when you’re itemizing your tax deductions. If you really want to get organized, you can even attach photos of receipts so that you have all of your documentation in one place.
Since going through each individual transaction can be tedious, Quickbooks allows you to set rules. For example, the software can be taught that any transactions from Staples should be filed under Business — Office Supplies. If you’re new to the program, you’ll also be happy to know that rules can be instated retroactively, saving you a ton of time.
Mileage is another extremely helpful section of Quickbooks Self-Employed. Again, you have multiple documentation options including the ability to enter the reason for the mileage as well as the start and end point for the trip. Using the Quickbooks app, you can also turn on an auto-tracker that will save your trips and allow you to label them after the fact.
Of course, taxes are one of the main reasons many freelancers and entrepreneurs get Quickbooks Self-Employed. Beyond the helpful itemization advantages, QBSE will also estimate your quarterly tax payments, which often plague new freelancers. In the event you’re not required to pay quarterly taxes, there are support options for annual taxes as well.
Ever get tired of generating invoices in spreadsheets and keeping track of what’s been paid and what hasn’t? Then you’ll want to check out Quickbooks Self-Employed’s invoices section. With just a few clicks, you can create and send invoices to your client. Additionally, you’ll be able to keep track of these invoices all in one place so you don’t miss a payment.
Even better, you can sign up for Payments through Quickbooks, allowing your clients to pay you via credit card or debit cart. While bank transfers are free, fees on the seller’s end do apply credit card transactions. However, at 2.9% + $.25 for each transaction, it may be worth the convenience.
Finally, the reports section will make doing your taxes a breeze. You can generate a spreadsheet or in-browser report giving you an overview of your business spending or a more detailed tax report. Another available report is a profit vs loss statement.
One minor gripe I have with Quickbooks Self-Employed was that sending these reports to my tax preparer and having them upload them to TurboTax didn’t seem to be an option. It may be easier if you purchase a Quickbooks/TurboTax combo package yourself, but it seemed I was only able to send out a spreadsheet. Granted, this still saved a ton of time and hassle at tax time, but it could have been even easier.
Overall, I would recommend Quickbooks Self-Employed to any freelancer, 1099er, or gig worker who, like me, needs help organizing their business finances. At about $10 (or less — a current sale is offering 50% off for the first six months), it’s also very affordable. And, it should be mentioned, your monthly fee is tax deductible!
A tip I’d give you about using the software is to keep up with your transactions. Even if you set a ton of rules, you’ll likely still have a few outliers that need to be categorized. I’d recommend review these weekly or at least monthly — along with your mileage and income — to ensure that you’re estimated tax payments are more accurate.
Best of luck on all of your adventures in freelancing!