Are you eligible for QuickBooks self employed software? How does the self-employed work in QuickBooks? What are its benefits? And how can it help you manage your QuickBooks accounts?
You need to know all these details if you are using QuickBooks. However, first of all, you need to know whether you are an intuit self employed eligible candidate? The rules to becoming self-employed are simple. You can find it in the guide.
Further, in this blog QuickBooks self employed review, we’ll discuss its utility in detail. Moreover about the self-employed app and other significant details.
What Does It Mean by QuickBooks Self-Employed?
The software Intuit self employed is another version of QuickBooks online. It’s a cloud-based accounting software. Talking about features, it streamlines your accounting data and tracks your income, expenses, mileage, and tax info.
Moreover, it is specifically designed for freelancers, real estate agents, user drivers, and independent consultants. You can access the software through the web or your mobile app.
First, let’s understand if you’re eligible for QuickBooks self employed software:
- Running a business as a sole owner or an independent contractor.
- A member partner of a business.
- Own a business of your own.
- File a Schedule C and business taxes with 1040
If you come under any of the above categories, you are eligible for self employed QuickBooks.
Significant Features Of QuickBooks Self Employed Software
QuickBooks offers the most comfortable tools in accounting software. Whether it is QuickBooks for self-employed app or software, the features are amazing. It helps you manage your income and records business mileage.
- Tracks your business income and expenses and manage them as well.
- Helps maximize the business deductions.
- It assists you to find the correct Schedule C categories for your expenses.
- It lets you enter data quickly in online banking.
- Helps you find the business profit by providing Reports of it.
Before you opt for QuickBooks for self employed, know if it is a good fit for you.
Also Read: How To Fix QuickBooks Error 6000
QuickBooks Self-Employed Works For You
If you’re a start-up business owner or a freelancer, QuickBooks self employed software is for you. Should you opt for it and in what circumstances?
For Freelancers:
Case 1. If you need a mobile bookkeeping app:
The self employed QuickBooks software allows you to categorize transactions. It lets you segregate bills and expenses based on customers’ needs. Further, QuickBooks self employed software lets you file a federal tax return easily. You can do it directly from its app.
Case 2: wants to track Profit, expenses and file a federal tax return
The self employed QuickBooks software allows you to categorize transactions. It lets you segregate bills and expenses based on customers’ needs. Further, QuickBooks self employed software lets you file a federal tax return easily. You can do it directly from its app.
For Businesses:
Businesses get equal benefit from the software. With self employed QuickBooks software, you can track your business mileage. The best part is it can be used for automatic mileage tracking. In addition to that, it helps you with potential tax deductions.
Also Read: QuickBooks Balance Sheet
QuickBooks Self-Employed Doesn’t Work For You
Undoubtedly, QuickBooks self employed software is a fantastic software. This is why users are always curious about using it. However, the software has its limitations. What are those?
Let’s understand here:
1. Entrepreneurs Owning Multiple Companies
Primarily, the QuickBooks self employed is designed for freelancers and entrepreneurs with one company. Hence, if you’re an entrepreneur with more than one company, this is not for you. Instead, you can try another multi-company accounting software.
2. Growing Businesses
If you are a growing business, QuickBooks for self employed software is not enough for you. You will have multiple entries to store, but the software is not capable of it. With QuickBooks self employed you cannot roll over double-entries like QuickBooks online. It’s a single-entry accounting system. Thus, we will suggest you prefer QuickBooks Online.
3. Companies with a Large Number of Employees
Since the number of your companies is growing, payroll also increases. In that case, QuickBooks self employed is not suitable. Because it doesn’t have any in-built or integrated payroll processing system. Hence, you can try other versions of QuickBooks that offer a multi-payroll feature.
4. Need Frequent Invoices
You can create a receipt in QuickBooks self employed. But, you have to enter details mainly each time for a receipt. That will be cumbersome. Because self employed QuickBooks can’t store details of customers, products, and services.
Therefore, if you wish to store customer details, product information, or service details, try something else. You can opt for QuickBooks Online, which features storing data.
Measure Pros and Cons of Self Employed QuickBooks
Here is an overview of QuickBooks self employed pros and cons. This is to ensure you of the benefits and limitations followed while using the software.
Let’s refresh our understanding:
Pros of QuickBooks Self Employed:
- Designed for freelancers and independent contractors
- Interactive interface and navigation panel
- Segregates personal and business expenses transacted from the same account
- Tracks business mileage and expenses
- Every quarterly calculate estimated tax
- Automatically transfers information to correct schedule C report
Cons of QuickBooks Self Employed:
- Not meant for growing/multiple businesses and entrepreneurs
- Can’t use to store customer, product, or service detail for creating receipts.
- Doesn’t maintain balance sheet
- Unable to track unpaid bills
- Doesn’t integrate payroll of multiple employees
- Limited invoices can be created
Understand The QuickBooks Self-Employed Interface
Here is a summary of the QuickBooks self-employed dashboard. While going through this, you can learn about its interface.
Left panel: On the left of the QuickBooks self employed is a menu bar. Using it you can navigate to each program.
Profit and Loss section: Learn about the total income and expenses made in a specified period (month, year, etc.).
Expenses: Get details of total expenses made in a specified time.
Accounts: Get the latest balance information of all banks, and credit cards linked to your account.
Invoices: Learn about the customer invoices owned by you.
Mileage: Provides total mileage recorded by QuickBooks for self employed app.
Estimated tax: The software Self-employed QuickBooks performs automatic calculations. It reviews the estimated tax you are responsible for in reference to your income and expenses recorded.
Significant Features of QuickBooks Self Employed
Mileage tracking app:
QuickBooks features a mileage tracking app. You can use the app to record your drive for business. It creates entries for all your business drivers automatically. In addition, both Android and iOS phones support the app.
Get bank feeds online:
By following the QuickBooks for self employed app or software, you can perform the tasks mentioned below:
- Download your bank and credit card transactions into your QB self-employed account.
- Categories business and personal transactions. Places each transaction into its appropriate expense category.
Generate, track & attach invoices:
With self employed QuickBooks, you can generate and track invoices. Further, you can create an invoice payable online. Though bank transactions are free, transaction fees on a credit card are chargeable.
Thus, once you have created invoices, you can send them to your customer via email. Also, can use the QuickBooks self employed app to send it via phone.
Besides that, you can also capture pictures of receipts. Then, attach them directly from your mobile app.
QuickBooks Labs:
Labs in QuickBooks for the self-employed serve for Intuit’s new features experiments. Here, you can explore the latest features developed by intuit for you, for example, an integration with Google Pay.
Summary printing:
The software allows you to print a summary of income and expenses. You can even classify income and expenses and align them with schedule C.
Other features:
- When preparing your own tax: You can transfer all your schedule C data to TurboTax and complete your return.
- Federal and state tax filing: Feature to purchase a Tax Bundle separately for federal and state tax returns.
- Protects from underpayment penalties: Calculate annual profit, estimated tax payment, and alert you of your tax due.
- Pay federal tax online through the Electronic Federal Tax Payment System (EFTPS).
- Integration: It lets you connect with third-party payment software like PayPal, Amazon Pay, etc. however, the number of third-party programs is limited.
Read Also: How to Resolve QuickBooks Error PS038
Winding Up:
Undoubtedly, the QuickBooks self-employed is an excellent software for freelancers. Also, for users who have started their business afresh. You can track, manage and deal with your transactions anytime. Moreover, file tax returns without any hassle. Lastly, it reminds you of penalties and saves you from underpayment. Overall, the self-employed software allows complete control of the business.