QuickBooks Online vs. QuickBooks Self-Employed for personal bookkeeping (and other alternatives)

QuickBooks Online (QBO) and QuickBooks Self-Employed (QBSE) have long been go-to options for freelancers, side hustlers, and self-employed professionals to manage their finances. 

However, we have a bit of unfortunate news: As of May 2024, QuickBooks Self-Employed is no longer accepting new sign-ups^[1].

That means if you were thinking of joining QBSE, you’ll need to explore other options. But don’t worry—this blog will still provide you with a detailed breakdown of both QBO and QBSE (for those who are still using it or just curious) while also introducing some great alternatives that can help you manage your personal and business finances just as effectively.

A simple overview: QuickBooks Online vs. QuickBooks Self-Employed

QuickBooks Online is a cloud-based accounting software designed to help small business owners streamline their financial management. QBO makes it easy to track income, manage expenses, and create invoices—all from one platform. 

Its user-friendly design and intuitive interface guide you through tasks like tracking expenses, creating invoices, and generating reports, ensuring you can stay organized. QBO also has built-in features like automatic categorization of expenses and real-time transaction tracking to help minimize human error, ensuring your financial records are accurate.

On the other hand, QuickBooks Self-Employed (QBSE) is an ideal solution for freelancers, independent contractors, and solopreneurs who need a simple, easy-to-use tool to manage their personal and business finances.

Unlike traditional accounting and bookkeeping software that require extensive setup, deep financial expertise, and manual input, QBSE’s simple dashboard provides a straightforward view of your finances.

Features and tools offered by QuickBooks Online

1. Bank reconciliation: It automatically syncs your business bank and credit card accounts, so you can track transactions in real-time without manual entry and fear of misplaced transactions. 

2. Invoicing: QBO helps create and send professional-looking invoices, set up recurring payments, and track when your clients view them. It even creates estimates, sends them to clients, and turns them into final invoices once the client agrees. 

3. Expense tracking: It categorizes your transactions based on common expense types like travel, supplies, or advertising, helping you organize your spending without constant manual sorting. With QBO, you can also upload and store receipts directly into their system, attach them to transactions, and store them securely for future reference.

4. Comprehensive financial reporting: With access to detailed cash flow reports, profit and loss statements, and balance sheets, QBO provides a clear financial picture that allows you to make smarter, data-driven decisions for your business.

5. Scalability: QBO grows with your business, offering different plans that cater to varying business sizes and needs. For example, you can start with a simple plan ^[2] and switch to their plus or advanced plan ^[3] as your financial management needs grow.

6. Integration Options: Seamlessly integrates with payment processors like PayPal, Square, Stripe, and QuickBooks Payments. QBO also works with QuickBooks Payroll, as well as third-party payroll systems like Gusto and ADP. 

Also read: 8 ways up-to-date bookkeeping prevents financial statement errors

Features and tools offered by QuickBooks Self-Employed

1. Tax tools: This accounting software uses machine learning to automatically sort your transactions into deductible and non-deductible categories. It helps ensure you’re capturing every possible business-related expense for tax deductions, preventing costly errors at tax time. 

With other features like tax reminders and suggested deductions, QBSE removes much of the guesswork around taxes, helping you stay compliant without needing an accountant.

2. Estimated tax calculations: QBSE estimates your annual tax obligations by analyzing your income and expenses throughout the year. It takes into account your freelance income, deductions, expenses, and taxable earnings to give you real-time insights into how much tax you may owe at the end of the year.

You can view these estimated tax payments monthly, quarterly, and annually, helping you plan your cash flow and set aside money accordingly to avoid tax surprises.

3. Income and expense tracking: It automatically categorizes your expenses based on common business categories like supplies, travel, marketing, or services. You can also add custom categories for specific spending, helping you separate personal from business expenses.

4. Mileage tracking: For business owners and freelancers who use their vehicles for work, QBSE includes automatic mileage tracking. You can set it up to log your miles driven, whether you’re meeting clients, attending events, or running errands for your business.

Also read: 5 best mileage tracker apps to track business travel miles in 2024

Strengths and weaknesses: Online vs. Self-Employed

Plans and pricing QuickBooks Online

QBO offers four main subscription plans:

Simple Start:

• Price: $30 per month.
• Features: Basic bookkeeping, income and expense tracking, invoicing, and receipt capture.

Essentials:

• Price: $60 per month.
• Features: Includes all Simple Start features plus bill management and time tracking.

Plus:

• Price: $90 per month.
• Features: Adds inventory tracking and project profitability to the Essentials features.

Advanced:

• Price: $200 per month.
• Features: Offers advanced reporting, dedicated account manager, and enhanced customizability.

Plans and pricing QuickBooks Self-Employed

QBSE offers three main subscription plans:

Self-Employed:

• Price: $15 per month.
• Features: Income and expense tracking, mileage tracking, and basic reporting.

Self-Employed Tax Bundle:

• Price: $25 per month.
• Features: Includes all Self-Employed features plus the ability to pay quarterly estimated taxes online.

Self-Employed Live Tax Bundle:

• Price: $35 per month.
• Features: Adds access to a CPA for live tax advice and a final review of your tax return.

Both versions of QuickBooks provide 50% off for the first three months if you buy directly instead of opting for a 30-day free trial.

Alternatives to QuickBooks Self-Employed 

1- CoCountant 

Since QuickBooks Self-Employed (QBSE) is no longer accepting new sign-ups, it’s important to explore other bookkeeping solutions. 

CoCountant is a premium accounting and bookkeeping service tailored for startups and small businesses. Unlike software solutions, CoCountant offers full-spectrum financial management, providing you with a dedicated team of QuickBooks-certified ProAdvisors to handle your financial management.

Key services:

• Full-service bookkeeping: Ensures your financial records are accurate and up-to-date.
• Accounting services: Offers comprehensive accounting solutions, including financial reporting and analysis.
• Controller services: Provides strategic financial planning and oversight.

Why choose CoCountant?

• Personalized service: Access to a dedicated team of professionals managing your finances.
• Multiple packages: CoCountant offers a range of plans, allowing businesses to choose the one that best fits their needs
• Fixed pricing: Transparent monthly fees with no hidden costs.

2. QuickBooks Solopreneur

QuickBooks Solopreneur is a tailored solution for one-person businesses seeking efficient financial management tools, a great alternative to QuickBooks Self-Employed.

Key features:

• Income and expense tracking: Automatically categorize transactions to simplify bookkeeping and maximize tax deductions.
• Invoicing and estimates: Create and send professional invoices and estimates directly from the platform.
• Mileage tracking: Utilize automatic GPS-based mileage tracking to log business trips effortlessly.
• Tax preparation integration: Seamlessly export expenses and prepare tax returns with access to expert help, powered by TurboTax.
• Mobile accessibility: Manage your finances on the go with user-friendly mobile apps for both iOS and Android devices.

Who it’s best for:

• Sole proprietors and single-member LLCs.
• Freelancers and independent contractors.
• Entrepreneurs seeking an all-in-one solution for business finances and tax preparation.

Pricing plans:

• Monthly subscription: Priced at $20 per month, offering a comprehensive suite of features tailored for solopreneurs.
• Annual subscription: Discounted rates are available for annual commitments, providing cost savings over the monthly plan.

The bottom line

Which QuickBooks version is “the one” for you?

With QuickBooks Self-Employed (QBSE) no longer accepting new sign-ups, you might be wondering what the best alternative is for managing your finances. While QuickBooks Online (QBO) remains a top choice, QuickBooks Solopreneur has emerged as a new option tailored specifically for one-person businesses.

• If you need flexibility and advanced features, Go with QuickBooks Online.
• QuickBooks Solopreneur is your best choice for bookkeeping for sole proprietorships, freelancers, and gig workers, offering easy bookkeeping and tax tracking.
• And if you’re looking for fully managed bookkeeping services, CoCountant offers hands-off financial management so you can focus on your business.

At CoCountant, we provide personalized bookkeeping services designed for small business owners like you. With real-time cash accounting and detailed monthly reports, we help you stay on top of your financial health and make smarter business decisions.

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