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A
accounts-2upc-co
September 23, 2022
Question

QBO as self employed?

  • September 23, 2022
  • 2 replies
  • 0 views
Hi, I have just setup QBO, although I am self employed. I am not a limited company and not VAT reg yet.
As a limited company tax's work different to being self employed will being on QBO calculate my tax, profit etc assuming I am a company, e.g. tax my profits. Also when I pay my self to my personel bank I would record under drawings , equity - will this effect my figures as I think currently it classes drawings as an expense and surely as self employed it can't be an expense?
So I am concered I am on wrong package,but I need the features of QBO.

Please advise. Many thanks

2 replies

T
TirzahC
September 23, 2022

Let me share information on the difference between QuickBooks Online and QuickBooks Self-Employed, accounts-2upc-co.

 

Every version of QuickBooks is designed to address specific business needs. This two have different platforms with varied functionalities. QBSE is for freelancers while QBO is best used for small businesses in general. 

 

If you need QuickBooks Online we have following features:

 

  • Payroll
  • Bills and Bill Payments
  • Quotes and invoicing
  • Track VAT
  • Multicurrency
  • Customized reports
  • Project profitability and budgeting
  • Cash and accrual accounting
  • Manage Construction Industry Scheme obligations

 

On the other hand, if you choose QuickBooks Self-Employed we have also this following features:

 

  • Track and claim allowable expenses
  • Manage business income and expenses
  • Prepare Self Assessment
  • Import bank transactions automatically
  • Invoicing

 

Once you decided which plan that's best for you and your business with the advise of your accountant, I'll help you with the process. 

 

First, we need to cancel your existing QBO and let's sign up for a new QBSE account.  

 

  1. Click the Gear icon and then select Account and settings.
  2. Go to the Billing & Subscription tab.
  3. Under the QuickBooks section, select Cancel subscription or Cancel online.
  4. Follow the on-screen instruction to complete the process. 

 

To sign up for QBSE:

 

  1. Go to the QuickBooks plan.
  2. Click the green radio button to toggle it to the Free trial option (the button should turn black, this indicates that you're going to sign up for a free 30 days trial).
  3. Tap the Select button under Self-Employed.
  4. Select Checkout and enter your Email and Password then Sign up With Email. (You may use the same email and password.)

 

We can go through these write-ups to know more about the difference between the two platforms as well as their features:

 

 

You can always get back to me if you have any other QuickBooks concerns. I'm always here to provide further guidance related to switching QuickBooks versions.

A
accounts-2upc-coAuthor
September 24, 2022

Hi,

Thanks for your reply however I stated I already am using QBO although I am self employed as I need the extra faetures.

 

Still not sure if QBO treats me as self employed as tax rules are different? And drawings I pay to my self seem to be recored as an expense.

 

Am I ok to use QBO being self employed? It won't effect how it treats figures, costs, income etc will it?

 

And why is it recording drawings as a business expense as its already had expenses calculated?

 

Ty

 

A
AbegailS_
September 24, 2022

Hello there, accounts-2upc-co.

 

You can use QuickBooks Online (QBO) to manage bill payments, send invoices, manage 1099 contractors, and much more depending on the plan you choose. 

 

In contrast, QuickBooks Self-Employed is focused on basic bookkeeping for freelancers and others who file their taxes as sole proprietors. Upon sharing this, I still recommend you to consult an accountant if QBO is the right version for you.

 

Additionally it's more appropriate for you to use QBSE since you're self-employed to get tailored features and tax forms. 

 

QBO doesn't prepare your Schedule C.

 

To learn more about self-employed taxes, you can check these articles to learn more: 

Thanks for being a part of our QuickBooks family. Please feel free to post again or leave a comment should you need anything else. I'll be happy to help.

R
ray fradge
September 24, 2022

Don’t waste your time with the feedback page , nothing gets fixed or updates on QB, also I would check with your customers that they are receiving invoices , a lot of users can’t even send invoices on here , been on going for nearly 8 month ,

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