In this month’s video, I shared some strategies for getting organized with your tax records. One of the most common groups of clients that seem to have trouble getting and staying organized are those that have 1099 income. The main reason for this is that some additional deductions are now available to you. If you find yourself in that situation, I may have a solution for you. QuickBooks offers a couple of services that help you track your income and expenses.
QuickBooks Self-Employed vs. QuickBooks Online
Both of these services are web-based and have an accompanying app. They give you more flexibility on access than the desktop software. They allow you to track income and expenses and attach receipts to transactions. They will both connect with your bank accounts, and you can create and send invoices. They are both monthly subscriptions.
Who should use QB Self-Employed?
QB Self-Employed is perfect for individuals that report their 1099 income on a Schedule C. The reports track the information into the same categories that are reported on your tax return. It also tracks expenses for your home office, auto, and depreciable assets. You can connect a bank account to the system that is used for both business and personal charges and easily sort the two.
Who should use QB Online?
If you are looking for something that is more of a traditional bookkeeping system, then this service may offer the features you want. You can print traditional financial reports, such as a Balance Sheet or Profit & Loss. If you have 1099 income for which you have elected S-Corporation status, then this will be better for you. It also allows you to have multiple users and print checks from the system. You can add payroll to this service as well.
Depending on your circumstances, one of the QuickBooks systems may be perfect for helping you keep track of your records. If you want to take your manual or spreadsheet system to the next level, give these two a look. Our team of ProAdvisors is happy to answer any questions that you may have.