“QuickBooks for Freelancers: A Comprehensive Guide”

quickbooks for freelancers

It lacks advanced functions like inventory management and project accounting but includes recurring invoices and billing, which are often present only in premium plans of paid software. Additionally, Wave charges minimal transaction fees for bank transactions and card payments. To be eligible for this offer you must be a new QBSE customer and sign quickbooks self employed login up for the monthly plan using the ‘Buy Now’ button. QuickBooks Online Payroll is not available with QuickBooks Self-Employed. QuickBooks is a software designed for small businesses and self-employed individuals to manage their finances. It allows you to track income, expenses, and invoices, as well as prepare financial reports and file taxes.

  • QuickBooks Self-Employed is intended for freelancers, contractors, and consultants.
  • Even the most basic QuickBooks account includes invoice creation, payment acceptance, expense tracking, mileage tracking, cash flow forecasting and basic reports.
  • Skip the self-employed version and go straight to QuickBooks Online if you think you’ll outgrow QuickBook Self-Employed’s basic reports and features.
  • This plan is ideal for those who want to integrate their tax filing with their accounting software.
  • We recommend choosing QuickBooks Online for a complete set of accounting features and access to ProAdvisors at an affordable price.

If you must track expenses and mileage so your clients can reimburse you later, then definitely look for accounting software that offers this feature. Some software confines this feature to more expensive plans or forces you to pay an extra fee for mobile receipt capture, so be sure to account for that in your budget. Keeping track of income, expenses, and taxes can be overwhelming, especially when you are juggling multiple clients and projects. This is where QuickBooks, an accounting software developed by Intuit, comes in handy. In this article, we will guide you on how to use QuickBooks as a freelancer to streamline your accounting process and save time.

Auto Payroll

In summary, QuickBooks provides freelancers with the tools they need to simplify their financial management. It streamlines expense tracking, makes invoicing effortless, and aids in tax preparation, ultimately allowing freelancers to focus on their work rather than wrestling with financial paperwork. It’s a crucial asset for anyone in the freelance world, enhancing financial control and peace of mind. While freelancers’ accounting may be less complex than that of a large corporation, it’s still important for them to have a clear picture of the financial health of their business.

It should also let users create a proposal or estimate, which they can then convert to an invoice after approval. General accounting features are still important, especially the software’s ability to manage accounts payable (A/P), accounts receivable (A/R), and cash. As much as possible, the software must-have features to track outstanding obligations and receivables. However, simple invoice and bill tracking will suffice for some freelancers.

Good Money Moves, LLC

QuickBooks Self-Employed’s invoicing feature allows you to generate and track invoices. If you choose this option, be aware that while bank transfer transactions are free, credit card payment rates are 2.99%. Once your invoice is completed, you can email it to your customer as a PDF attachment. QuickBooks can help by generating reports that show your income and expenses, making it easy to file your taxes accurately. You can even connect QuickBooks to popular tax preparation software like TurboTax, making the tax filing process even easier.

quickbooks for freelancers

When setting up your account for the first time, you can choose to connect your bank account or manually enter transactions. If you want to file one state and one federal tax return and pay quarterly estimated taxes online, you need at least the Self-Employed Tax Bundle. This tier also lets you get unlimited live help from TurboTax experts or talk to a real certified public accountant (CPA) when needed.

Best Accounting Software for Freelancers and Self-Employed

On the flip side, Zoho Books fell short in ease of use because of its limited support network of bookkeepers who provide bookkeeping assistance. Freelancers might have a hard time looking for Zoho Advisors as they’re not as accessible and popular as the QuickBooks ProAdvisor network. If you want a vast network of bookkeepers to help you, we recommend QuickBooks Online.

Let’s check out the features of QuickBooks Self-Employed and see if it can be beneficial to you as a freelancer. Creating Excel spreadsheets and storing thousands of receipts can become a jumbled mess when trying to keep your business finances in good order. Schedule C is an IRS form that accompanies Form 1040 to determine business net income (or loss). Receipts and expenses are stored, organized, and ready for when you need them.

QuickBooks Self-Employed does not offer double-entry accounting, which is more accurate and can help prevent accounting errors. If you anticipate your business will grow, consider starting with QuickBooks Online, which comes with this capability and is designed to be used by multiple people. The QuickBooks Self-Employed mobile companion apps works with iPhone, iPad, and Android phones and tablets. Not all features are available on the mobile apps and mobile browser. Data access is subject to cellular/internet provider network availability and occasional downtime due to system and server maintenance and events beyond your control. If you are a freelancer who needs help managing your income and expenses, don’t worry.

Not only can you keep track of your stock levels and see what’s selling, Xero will also automatically populate invoices and orders with items you sell. Xero’s pricing plans are also affordable, which will appeal to solo operations that won’t break the bank. FreshBooks is great for project or service-based freelancers while Wave is a totally free alternative. Finally, for freelancers who only want to compile their income and expenses and file a tax return, QuickBooks Self-Employed may be optimal.