Self-Employed Accounting Software
If your monthly workload and expenses are higher than that, you’ll have to scale all the way up to Xero’s Growing plan, which includes unlimited invoices at $37 a month. 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. One of the benefits of using Sage Business Cloud Accounting is that it provides access to Sage Marketplace, which offers apps in a variety of categories. Another benefit is the ability to accept online payments and pay vendor bills electronically, an option many competitors don’t offer. If you’re looking for accounting software for your small business, remember that not all software applications are created equal.
If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in Form 1040 and 1040-SR. However, if you choose to use Wave Payments, you’ll have to pay a small fee for credit card processing, which is the same fee you’d pay with any application. You’ll also have to pay if you use the payroll option, but that’s not an issue if you’re self-employed. If you’re looking for good accounting capability at a price you can afford, look no further than Wave Accounting.
Wave Accounting: Most affordable
Also available are the Premium plan, which is $45/month and supports up to 500 clients, and the Select plan with custom pricing for more than 500 clients. The cost of hiring a CPA also increases the more complicated your return is and the more accountant for self employed time that person will spend on your return. The same study from the NSA found if you are self-employed and need to hire a CPA to prepare an itemized Form 1040 with a Schedule C and a state tax return form, the average fee increases to $457.
A 401(k) loan lets you borrow money from your own retirement savings without incurring taxes or penalties, provided you pay the loan back within five years. 401(k) loans allow you to borrow up to the lesser of $50,000 or half the amount vested in the plan. Borrowing for some purposes, like a home down payment, may allow a longer repayment period. Tax software for the self-employed might also make sense if you receive 1099s from clients who pay you throughout the year but do not withhold any taxes on those payments. Like some other tax software, TaxSlayer designs its platform with a simple Q&A style format.