It doesn’t matter what type or size of business you run. To be successful, you need to be on top of your accounts. Nowadays, there are a myriad of different bookkeeping options available. They all do the basics and plenty of useful extras. Not only can you keep track of revenue, but you can manage inventory, track expenses, manage tax liabilities, and much much more.
With so many different packages out there, it’s hard to know which one is best for your business. You need a product that works for your business as it stands today, as well as how it will develop tomorrow. A scalable product will make it easier for your accounting capabilities to grow with your business. Besides, you won’t be hindered by switching to a new product or paying for features you no longer require.
Quickbooks Accounting Software
One company that offers two practical accounting solutions, depending on your needs, is Quickbooks. They offer two products Quickbooks Self-Employed and Quickbooks Online. Quickbooks also offers a desktop version, Quickbooks Enterprise. But, today, we are only looking at fully mobile app-based options.
Quickbooks Self-Employed
Quickbooks Self-Employed falls under the Quickbooks online banner but is a stand-alone product. That means, unlike the other Quickbooks online products, it is not scalable. There is only one option, and you cannot easily upgrade it to Quickbooks online. Quickbooks Self-Employed is targeted at Solopreneurs and is more of a tax management tool than an accounting tool. Quickbooks Self-Employed allows you to easily manage personal and business expenses and estimate and pay your taxes.
Typical Self-Employed users fall into the following categories:
- Uber/Ola Drivers or other gig economy workers
- Independent contractors or consultants
- Sole proprietors
- Freelancers
- Realtors
Quickbooks Self Employed is a streamlined tool designed to provide cost-effective tax and account management. It costs more than an excel spreadsheet but is far, far easier to use and more productive.
QuickBooks Self-Employed Restrictions
Quickbooks Self-Employed works for a business with a simple structure. As a result, Self-Employed is not an option if you have employees because there is no payroll function. Also, it doesn’t work if you pay a high volume of invoices. That’s because invoices have a cap of 10 per month. Quickbooks Self-Employed also doesn’t allow you to customise your invoices. What’s more, there are a limited number of apps you can integrate with Self Employed.
Another restriction to be aware of with Quickbooks Self-employed is it doesn’t allow for multiple income streams or businesses. If you work as an Uber driver and Freelance writer, you would need to run two distinct accounts and pay subscriptions for both options.
Quickbooks Self-Employed Benefits
Quick books Self-Employed is a popular program, especially within its niche market. You can easily track mileage, scan receipts to transactions, connect to your bank account, and automate transactions. The biggest asset is how much easier it makes your tax return. You will be reminded of tax due dates and can easily separate business and personal expenses. Generating P&L reports for your account, or giving your accountant access to your data, is also really straightforward.
Before selecting Quickbooks Self-Employed, you need to be sure it is the right tool. If you hope to grow your business and expect to hire staff in the future, Self-Employed is probably not the best option. It would be better to consider Quickbooks Online as it can grow along with your business.
Quickbooks Online
Quickbooks Online is another small business accounting package that is extremely popular. It offers more advanced features than Self-Employed and is much more than a tax tool. The aim of Quickbook online is to track business transactions. Unlike Self-Employed, you can do product sales and purchases, accounts payable, employee records, and hire contractors. That makes it an ideal tool for e-commerce stores such as Shopify.
Just as Self-Employed has its fans, so does Quickbooks online. Owners love its ability to send automatic invoices, statements and reports, daily bank transaction downloads, and mobile accessibility. Quickbooks online offers all these essential services for small businesses without over-complicating the tool or have you pay for things your business doesn’t need. Additional features include providing access for multiple users, importing information from other Quickbooks products, and tracking inventory. There are also optional add-ons to expand functionality on an as needs basis.
Quickbooks Self-Employed and Quickbooks Online target two different small business models. Quickbooks Self-Employed is a more straightforward tool. Its price reflects this. Self-Employed is 40% cheaper than the basic Quickbooks online subscription. If you don’t need the additional services and future scalability, then Quickbooks Self-Employed is. A straightforward and reliable tool to add to your business.
