In my previous post I gave you my top 3 choices for How to Choose the Right Accounting Solution for a NEW Service-Based Sole Proprietorship. Now we’re going to look at QuickBooks Self Employed.
QuickBooks Self Employed (QBSE) is an Intuit Solution built specifically with the 1099 Independent Contractor in mind. This means QuickBooks Self Employed truly understands the immediate concerns and needs of a newly formed service-based business. QuickBooks Self Employed is a web-based solution that can be purchased for a monthly subscription of only $4/month. QuickBooks Self Employed solution focused on what is commonly considered the most complex area of becoming a self-employed individual. Self-Employment Taxes. QuickBooks Self Employed also provides very cool self-employed features including:
- Automated mileage tracking and
- Separating personal from business expenses (no more commingling).
These are the 3 VERY COOL QBSE features we will cover here.
Quarterly Taxes Done Right ~
Quarterly taxes allows for the user to project self-employment income throughout the year. It calculates federal quarterly estimated taxes (commonly referred to as SE Tax). Since the US has a “pay-as-you-earn” tax system, self-employed individuals should be paying their taxes throughout the year. This feature encourages good habits. It also provides a constant reminder to self-employed individuals that they should be paying or at least saving towards their tax obligations.
Automated Mileage Magic ~
The mileage expense feature allows users to keep track of “actual expenses” vs “standard mileage” expenses. Then it creates the REQUIRED mileage log in a spreadsheet format that can be used at tax time. Even MORE exciting, the mileage app tracks the user’s mileage automatically. This means its actually running“ in the background” on his/her phone – no more paper & pen! Works on I Phone & Androids.
Keeping Business & Personal Separate ~
Newly self-employed individuals may not have opened a separate business account yet. We’re still getting used to using the business account for only business purposes. The ability to separate business vs personal transactions is an awesome solution for this common newbie dilemma.
My Final Thoughts on QBSE
QuickBooks Self Employed has created an online accounting solution that Keeps Things Simple for the new small business owner. This software focuses on tracking your business’s accounting data in an automated manner. Then it allows for mobile-access so that users can stay organized from anywhere on any device. The ability to project your self-employment income and calculate quarterly estimated taxes is my favorite software feature. This feature encourages self-employed individuals to stay on top of their tax obligations. Staying on top of your tax obligations will most definitely make year-end accounting and their Tax Time a much more pleasant one!