This version of QuickBooks is ideal for managing tax reporting and business expenses for sole proprietors, the self-employed, freelancers, contract workers, or anyone who’s part of the on-demand economy. People who use Schedule C / 1040 may also find it helpful in writing off business expenses when filing their personal taxes.
Perhaps the main reason to use it is that the program separates business expenses from personal ones – especially important for protecting your assets in the event of a legal action against you or your business. That being said, it doesn’t offer invoicing, digital receipts, or automatic mileage tracking, making it difficult to distinguish from all the other expense trackers out there.
QuickBooks Self-Employed offers a mobile app with basic accounting tools like a mileage tracker, integration with online banking, invoicing, transaction categorization, tax reports, receipt tracking, and syncing with Turbo Tax (it doesn’t address payroll). Its main benefits are:
- Separating business and personal expenses to protect your assets
- Mileage tracking using the current IRS mileage rate to calculate an accurate tax deduction
- Categorizing business income and expenses for easier tax reporting
- Integration with Schedule C and Turbo Tax: After inputting expenses by category, you can either download a Schedule C breakdown of income and expenses, or export to Turbo Tax.
- Estimated tax payment: Tracks how much you should pay in quarterly taxes, warns you when to pay taxes, and automatically syncs info into 1040-ES