Self-employed individuals tax center Internal Revenue Service

accountant for self employed

QuickBooks Self-Employed tracks your miles for easier tax reimbursement at the end of the year. Its expense categorization also simplifies tax deductions, and the software’s quarterly tax estimates keep you on top of fees so you aren’t caught off guard come April. If you’re searching for accounting software that’s user-friendly, full of smart features, and scales with your business, Quickbooks is a great option. The onboarding process is also a good time to lay out how you plan on measuring your accountant’s performance to ensure you’re both on the same page. Lastly, make your new accountant feel at home and introduce them to the people they will be working with.

Ellen Chang is a freelance journalist who is based in Houston and writes articles for U.S. Chang previously covered investing, retirement and personal finance for TheStreet. She focuses her articles on stocks, personal finance, energy and cybersecurity. Her byline has appeared in national business accountant for self employed publications, including USA Today, CBS News, Yahoo Finance MSN Money, Bankrate, Kiplinger and Fox Business. She is a proud graduate of Purdue University and a lover of random acts of kindness, volunteering and cats and dogs. Follow her on Twitter at @ellenychang and Instagram at @ellenyinchang.

Best Small Business Accounting Software

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes. If you’re looking for good accounting capability at a price you can afford, look no further than Wave Accounting. A perfect choice for self-employed individuals and sole proprietors, Wave is 100% free, with no costly plan you need to upgrade to in order to access additional features. Once you sign up for Wave, you have complete access to all of its features.

It also lets you manage 1099 contractors, so if you subcontract out any of your business’s services, QuickBooks Online is a good pick. If you sell handmade products on Etsy or plumbing supplies out of your home, try Xero. It’s one of the only accounting software providers to offer inventory tracking with each plan. Xero also helps sales-based businesses stay afloat with features like customized purchase orders for fast, clear communication with suppliers.

Credits & Deductions

If you’re looking for the best accounting software for sole proprietors and the self-employed, there are a few features you should pay particular attention to. For example, if you sell products, you’ll want an application that offers inventory management, while those that offer services will find time-tracking capability a major plus. Intuit QuickBooks Self-Employed ($15 per month) is a good choice for a self-employed individual or freelancer who needs to separate business and personal expenses, send invoices, and track mileage. It also has useful mobile apps and helps you estimate your quarterly taxes based on your income and expenses. As I mentioned earlier, it can also track your mileage, using your phone’s location services. AccountingSuite is not as well-known as its competitors, but it offers many of the same features designed for the small business owner, including self-employed individuals and sole proprietors.

  • You do this by subtracting your business expenses from your business income.
  • A Form 1040 return with limited credits is one that’s filed using IRS Form 1040 only (with the exception of the specific covered situations described below).
  • Even if you work solo and have no employees to pay, accounting software is still important.
  • At, our research is meant to offer general product and service recommendations.
  • The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation.
  • They can help you with all aspects of accounting including cash flow management, business planning and budgeting, and tax returns for small businesses.
  • If you sell handmade products on Etsy or plumbing supplies out of your home, try Xero.

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