Hi everyone. Are you trying to decide whether QuickBooks Online or QuickBooks Self Employed is right for you?
No worries, I’ll show you my expert comparison of QuickBooks Online vs QuickBooks Self Employed. I have updated this comparison as of January 2017 with all of the latest features.
QuickBooks Online vs QuickBooks Self-Employed comparison chart
Here is a comparison chart I put together to show you the main features of each product and how they compare:
Who should use QuickBooks Online?
Small business owners who pay employees or contractors, who need to track accounts receivable, accounts payable, and view extensive reports about their business.
With QuickBooks Online – the goal is to manage the financial aspects of your business. You can get up to 65 built-in business reports. Here is a link showing all of the features of QuickBooks Online.
Ready to buy QuickBooks Online? Buy QuickBooks Online here.
Who should use QuickBooks Self Employed?
People who work for themselves as freelancers and who receive payments electronically or who take payment via Stripe or PayPal. A good example would be Uber drivers, Etsy sellers, Upwork freelancers, etc.
QuickBooks Self Employed would not be the best fit for people who receive payment from a customer via check – such as a landscaper or handyman. It would not be good for people who track time and who invoice clients for their time.
With QuickBooks Self Employed – the goal is to track freelance business income and expenses, capture all expense deductions for tax time, track business mileage, estimate quarterly tax payments, and make tax time simple.
With QuickBooks Self Employed – you categorize income and expenses using “Schedule C” categories. That means that everything is getting categorized to make filing your taxes simpler. QBSE offers limited reporting capabilities.
Not sure yet?
If you plan to stay a freelancer – use QuickBooks Self Employed
If you plan to hire employees – use QuickBooks Online Simple Start or QuickBooks Online Essentials.
If you plan to grow your freelancing business – I recommend using QuickBooks Online Simple Start.
Can I convert from QuickBooks Self Employed to QuickBooks Online?
No, right now you cannot convert from QuickBooks Self Employed to QuickBooks Online.
I really like the mileage tracking feature in QuickBooks Self Employed. Does QuickBooks Online track business mileage?
No, right now QuickBooks Online does not track business mileage. Why not try a phone app to track your business mileage like MileIQ?
I’m a freelancer and I track billable hours and invoice clients for my time? Which product should I use?
You should use QuickBooks Online. Right now QuickBooks Self Employed does not track billable hours (however, you can create invoices in QuickBooks Self Employed).
Can I invoice customers with QuickBooks Self Employed?
Yes, you can. You can get paid online by connecting QBSE to QuickBooks Payments.
What if I plan to hire employees in the future?
You should use QuickBooks Online. QuickBooks Self Employed does not include a payroll feature.
Does QuickBooks Self Employed track sales tax?
No, QuickBooks Self Employed does not track sales tax.
How can I test drive QuickBooks Online or QuickBooks Self Employed?
You can test drive a sample QuickBooks Online company here. Just enter the security verification.
To test drive QuickBooks Self Employed, sign up for a free trial here.
What is a Schedule C?
It is an IRS form that most self-employed people file to report their business income and expenses to the IRS. With QuickBooks Self Employed, you categorize income and expenses according to categories on Schedule C.
What if I am using QuickBooks Online, can I convert to QuickBooks Self Employed?
There is not a way to convert from QuickBooks Online to QuickBooks Self Employed. If QuickBooks Self Employed is a better fit for your business, then wait until the beginning of the calendar year and start using QuickBooks Self Employed as of the first of January.
I hope that my comparison of QuickBooks Online vs QuickBooks Self Employed has given you more confidence in choosing the right product for your personal situation. Do me a favor, will you share this post on social media? This would really help me and I’m sure there are others who are confused about which product to choose.
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