When I Awakened my W2 Project to freelance Whole time, QuickBooks Self-Employed was the only way I knew how and when to pay my taxes
Once I stopped my W2 project to freelance whole time, it was frightful at the simplest way possible. With one exception: taxation. Figuring out how to do my taxes as a freelancer was daunting. And of course I had to thoroughly monitor all income and expenses for the very first time.
I began with PayPal invoicing, another checking accounts, and a spreadsheet I would use to create a profit and loss statement and monitor my earnings. When the initial round of quarterly taxation was coming thanks, I immediately understood that doing all of my own monitoring was taking up way too a lot of the time. Time that could be spent working on customer projects.
Like many new salespeople, I was not prepared to employ an accountant to help me but I had to create this portion of conducting my business simpler. A buddy of mine suggested I try out QuickBooks Self-Employed, so I signed up to the 30-day free trial and immediately realized I could bid farewell to time-consuming manual data entry indefinitely.
QuickBooks Self-Employed is a software that unites tax applications and cloud-based accounting applications. It automatically monitors my earnings and expenses and quotes my own quarterly tax payments.
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I began by connecting all my company accounts in 1 location — my checking account, PayPal accounts, and company credit cards all connected up. I reviewed all my trades and marked them as company or private. I certainly had a couple of lattes and dinner dates which had to be discounted as private.
From hereI concentrated on the company trades and picked exactly what kind the trade fell into for taxation purposes. Some common classes for me personally are:
- Estimated taxes
- Apps/software/web providers
- Legal and professional services
I spent a couple of hours digging through each and every trade and ensuring that they were categorized correctly.
When I’d made a company buy with money or on a private card, then QuickBooks made it simple for me to account to this. I just snapped a photograph of this reception and dropped it to the computer system. You might even add transactions manually when desired.
The final step was to make a couple rules for things such as my Adobe Suite subscription for layout work. Each time I’m charged for this company expenditure, QuickBooks automatically categorizes it for me personally.
Following the initial setup, today it takes me a few minutes every week to experience my trades. I will also do it in my cellphone — that the QuickBooks Self-Employed program is user friendly and simple to navigate.
There are two or three plans it is possible to select from with QuickBooks Self-Employed. The first is your normal self-employment program, which enables me to categorize and track income and expenses, keep tabs on my Schedule C deductions, send bills, and get mechanically calculated quarterly tax estimates. That last feature is really well worth it for me to understand just what I want to ship around to the IRS annually.
The next choice is your QuickBooks Self-Employed Tax Bundle, including all the above and also two handy features: I could pay my quarterly estimated taxes directly from the QuickBooks portalsite, and that I have easy access to TurboTax, such as one nation and one federal return as it is tax time.
These developments were too great for me to pass up, so I chose this particular subscription. It costs $5 12 a month to the first few months. There is also a third party plan which includes assistance from a CPA, but I do not think I am quite there yet.
To cover my annual earnings throughout the QuickBooks portalsite, I needed to join to my Electronic Federal Tax Payment System (EFTPS) and stipulate that the accounts I needed the money to come out of. This procedure was relatively painless and I had it setup in 15 minutes.
QuickBooks sends me a reminder a week or so before taxes are due and that I will log into cover. It follows up with a reception and retains a list of the payment.
That which is completed in a few clicks, and getting my own taxes sorted out feels like such a relief.
It is not all rainbows and roses in regards to this cloud-based accounting program. Listed below are my two big complaints:
- The invoicing process is constrained. I can not set up recurring statements or program bills for a future
- QuickBooks does not provide any way to handle customers. I track all customer work, including hours and projects on another spreadsheet
That said, it is a very simple system that’s saved me time and addressed my concerns about filing taxes as a freelancer. Having my taxation summary file, all Schedule C deductions, along with my estimated quarterly taxes done is just what I need.
In case you are a single proprietor/LLC like me, then QuickBooks Self-Employed would be the ideal answer to getting organized and ready to file your taxes this past year.