It’s no secret that we’ve all been side hustling for a while now. However, did you know that 67.6 million Americans will be freelancing by the time all of the stats are compiled at the end of 2021? That's 42% of the American workforce.
With close to half of the country’s workforce working, at least in some capacity, as a self-employed individual, we’ll assume that nearly half of the population is also looking for tax and accounting solutions for their self-employed income. Ah, yes, taking care of your own accounting, invoicing, and tax stuff is one of the (many) joys of being self-employed!
Don’t worry, though. It doesn’t all have to be hard. In fact, there are tons of online accounting software and platforms available for freelancers to use (check out our list of the top financial tools you need here). Today, though, we’re going to be reviewing one of the top ones: Quickbooks Self-Employed.
What is the Quickbooks Self-Employed cost? Is it good for beginner freelancers? Looking for a Quickbooks Self-Employed review for 2022? We’ve got it here.
What is Quickbooks Self Employed?
If you’re a freelancer or sole proprietor, QuickBooks Self-Employed is a tool that can help you keep track of your self-employed income, expenses and tax obligations. Why would you need to do this?
As a freelancer or independent contractor (just other names for being self-employed), you have to file your own taxes. You obviously file your own taxes as a “regular” employee as well, but usually the company you work for has already done all of the calculations for you and you just have to enter a few simple numbers. As a freelancer, this isn’t the case!
If you’re a freelance DJ and graphic designer, for example, you need to keep track of exactly how much you earn from each client throughout the year. You’ll also need to keep track of the expenses you incur related to your work activity (as a designer, for example, this could be your laptop, design templates, a Photoshop license, etc.).
This sounds pretty daunting, right? It can be! That’s why there are platforms like Quickbooks Self-Employed that can help make everything easier to track, store, calculate, and export.
New to freelancing? Check out our guide to 1099 Employees: Self-Employed Taxes Explained here.
Is Quickbooks Self-Employed Right for Me?
If you’re a solopreneur or freelancer, then it can be very helpful, yes. However, if you’ve already scaled your side hustle to a full blown small business then it might be time to think about upgrading to Quickbooks Online.
With Quickbooks Online, there are more integrations for currency conversion, bill payments, payroll features, inventory tracking, and the reporting features are more advanced. We’d suggest scaling up to Quickbooks Online simply for the payroll features if you have at least one employee. Plus, Quickbooks Self-Employed only allows one user (you!), so once you scale past just employing yourself, you’ll need to upgrade anyway.
What Are the Features of Quickbooks Self Employed?
With Quickbooks Self-Employed, you’re getting all of the standard features and functions of an accounting software platform but with more integrations specifically for filing your taxes. Some of the coolest features of this platform include the ability to:
- Automate expense tracking straight from your bank account.
- Send email invites to your accountant so that they can access your tax information if needed.
- Organize and keep track of your business receipts.
- Log mileage driven if you use your car for work purposes.
Aside from that, though, the platform is pretty standard. You will create your Quickbooks Self-Employed account first. And, it’s important to note that this is different from using the regular version of Quickbooks.
After you have your account created, you’ll link your bank accounts (this can be credit cards, debit cards, bank accounts, or even payment websites such as PayPal if your clients pay you frequently through those platforms). Then, you’ll work to organize certain transactions and payments into business expenses and revenue. Note that this is where the ability to automate expenses comes in handy as it can save you quite a bit of time.
Struggling to stay productive as a freelancer? Here is a quick guide to the Best Productivity Tools for Freelancers.
How Much Does Quickbooks Self Employed Cost in 2022?
Quickbooks Self-Employed costs just $15 a month for the basic plan, which includes:
- Mileage tracking
- The ability to separate personal and business expenses
- Calculated quarterly taxes (but no ability to file)
- Expense organizing into the right categories needed when you file your taxes (Schedule C)
- Send and track invoices
However, if you’re looking to scale your operations just slightly and make life a little easier on yourself, you can upgrade to the Quickbooks Self-Employed Tax Bundle, which costs $25 a month and includes everything listed above, plus the ability to:
- Import all of your data straight into TurboTax when it’s time to pay your taxes
- Pay quarterly taxes online straight from the platform
- File your state and federal tax return for free (it’s included in the fee you pay monthly!)
Starting to think about your freelance taxes for 2022? Check out this article on How Tax Reforms Will Affect the Gig Economy.
Build Your Business with Wealth Stack
Is Quickbooks Self-Employed right for you? Ultimately, it comes down to what you’re looking for in your accounting and tax software. If you want to be on top of it all and ensure you don’t miss one single payment or expense, it’s a helpful tool for sure. And, the $15 a month fee is great compared to other platforms with similar features.
What about if you scale your side hustle to a business and now you’re employing a team of five great people helping you build your dream? You’re gonna wanna upgrade to the regular version. And, on top of that, you’re also gonna want to make sure you’re on the right track with your business growth.
When you reach that point, Wealth Stack is here for you. The Wealth Stack Growth Pack is designed to help you:
- Access the funding you need at the terms you want
- Learn how to use that cash to increase the value of your business
- Attract top talent
- Increase business productivity
- Retain your best employees
To start investing in yourself, your employees, and your business, learn more about the Wealth Stack Growth Pack here.