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Quick Tips Tuesday: QuickBooks Self-Employed

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Hello, friends! I’m excited to share that today we’re launching a new series in the Community called
Quick Tips Tuesday with QuickBooks. The series will cover a range of QuickBooks Online related topics and questions that we see come up in the Community. Today, we will be covering QuickBooks Self-Employed. If you’re a new subscriber, this article is for you. Follow along below for a list of fast and helpful tips.

Quick Tip #1

Save time by connecting your bank account

Every business owner has heard the phrase “time is money”, and we agree. One of QuickBooks Self-Employed’s most time-saving features is Online Banking. When you connect your accounts to your bank feed, your recent transactions download automatically. This lets you skip manual data entry, which saves you time. QuickBooks even categorizes the transactions for you. All you have to do is approve the work. It’s that easy. 🤯
Follow the steps below to connect your bank feed:
  1. Select the profile ⚙ icon and then select Bank accounts.
  2. In the search box, enter the name or URL of your bank. Then select Continue. If you've already connected an account before, select Connect another.
  3. Enter the sign-in info you use for your bank's website.
  4. When you’re ready, select Connect securely.
You can also connect your bank account via mobile app or tablet. Check out more on Connecting bank and credit card accounts to QuickBooks Self-Employed.

Quick Tip #2

Automatically track your mileage when working on the go
Being self-employed allows you to deduct business travel expenses. The QuickBooks Self-Employed App makes tracking mileage a breeze. QuickBooks automatically detects and tracks everything from start to finish. Just take your mobile device with you and open the QuickBooks Self-Employed mobile app when you start driving -we take care of the rest! From there, you will want to categorize your trip expense. Once you’ve reached your destination, here’s how to do that:
  1. Select Mileage on the menu.
  2. Find and categorize your trip. To categorize it as Business, swipe left. For Personal, swipe right.
  3. If this was a business trip, add a business purpose. You can also tag a vehicle, but this is optional.
  4. When you’re done, select Save.
QuickBooks moves your reviewed trips to the Reviewed tab. Pretty awesome, right? Click here to learn more about how to automatically track mileage.

Quick Tip #3

Automatically estimate your income tax

If you're self-employed, you probably need to pay federal self-employment taxes. Fortunately, QuickBooks Self-Employed helps you estimate your income tax automatically.
QuickBooks gives you an estimate for federal income and self-employment tax. This is calculated by applying income tax rates to your total self-employment taxable profit from your business plus any personal income you entered from outside your business. Self-employment tax is calculated by applying Social Security and Medicare tax rates to your business taxable profit.
Here’s what you can do to get a more accurate estimate:
  • Add all of your business income and expenses and categorize them in QuickBooks.
  • QuickBooks adds up your self-employed income. Then it subtracts any expenses and deductions you can write off. This gives you your business's profit. Plus, QuickBooks uses your current profits to estimate your income for the rest of the year.
  • Fill out your tax profile on the Tax Estimate page. Here, you can add up and enter any income from outside of your business that is taxed at ordinary income rates (such as wages, salary, etc). Don't include income from more complex tax situations where income might be taxed at different rates (such as long-term capital gains from the sale of stock, certain retirement income, etc.). The tool doesn't currently support estimating tax on income outside of your business that could be taxed at different rates.
Review the IRS website for the most up-to-date quarter schedule and payment deadlines. When you're ready, QuickBooks can help you make estimated quarterly tax payments. Click here for more about estimating your income tax in QuickBooks Self-Employed.

That does it, folks. This was our very first Quick Tips Tuesday article, thank you for joining us! We hope you found this to be helpful. We want to create these articles to be as tailored to your questions as possible, so join the conversation below and let us know what you think. For more resources on this topic, take a look at our QuickBooks Self-Employed Overview. Until next time, I’ll see you in the Community

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