Please can someone explain how to set a rule in QBSE (UK) that automatically categorises a transaction as 'Business Income'. I can only set as 'Other Business Income'

Hi JSSE Thanks for reaching out to us here on the Community. To confirm the issue that you're experiencing; when you're creating a rule, select the cog/gear icon and select the blue > create rules > create rule, you don't have the option for 'Other Business Income' when you select the blue wording under Category?

Hello John C,

Yes, I have the option for 'Other Business Income' - what I want is 'Business Income'

Likewise for expenses - I would like to create a rule to automate 'Business Expense' but can only select 'Other Business Expense'.

I don't need or want the 'Other' - just the Expense or Income.

Thanks.

Hi JSSE Apologies, the previous post should've read 'you don't have the option for 'Business Income'. We can see that you do have the option for 'Business income' within the category section, are you accessing your account via a browser/computer? Please note that there isn't a category named business expense only other business expense therefore you'd have to select one of the other categories. 

Hi John C,

If I don't set a rule, transactions do get marked as 'Business Income' - (without the 'Other')why is it not possible to select that option when setting a rule?

Why is there not a category 'Business Expense'?

Yes, - using a computer - I don't see anywhere to set rules on the app - can you explain how to set rules on the app? (android).

Thank you.

Hi John C,

If I don't set a rule, transactions do get marked as 'Business Income' - (without the 'Other')why is it not possible to select that option when setting a rule?

Why is there not a category 'Business Expense'?

Yes, - using a computer - I don't see anywhere to set rules on the app - can you explain how to set rules on the app? (android).

Thank you.

Thanks for coming back to this thread, JSSE. I'd be glad to provide the steps for creating a bank rule for Business Income and Expense.

You can go to the Gear icon of your QuickBooks Self-Employed (QBSE) account when creating a bank rule.

Here's how:

1. Go to the Gear icon beside your email address, then select Create rules.
2. Click Create rule.
3. You can now then enter any Description and tick the Match exactly box.
4. From the Account dropdown, select the account you want transactions to go into.
5. Under the Type dropdown, choose either Business, Personal or Split.
6. Select the Category link and choose a category.
7. If you want to apply to the previous categorized transactions, tick the Also apply to past transactions box.
8. Once done, select Save.

In addition, the option to choose a Business Expense category is unavailable. You can consider selecting a closest category for your transactions to be matched.

Also, you can refer to this article to learn how to create a bank rule in the app while using an android: Create bank rules to categorise banking transactions in QBSE.

Moreover, I'm adding these articles as guidance on how to manage your transactions in QBSE:

• Export transactions and get reports
• Exclude or delete transactions

If you have any more questions or need further assistance, feel free to ask. I'm here to help. Have a great day.

Hello RoiceW,

Thank you.

Can you please explain why it is not possible to add a rue for 'Business Expense' - why does it have to be 'Other Business Expense'

Thank you.

Hi JSSE The system has been created in accordance with HMRC's SA103F, in this instance we're referring to the 'Business expenses' section 17-46 and therefore if you're categorising a transaction and none apply you'd use 'other business expense' as there isn't a category called business expense. 

We've included a link to the HMRC SA103F for your reference: https://intuit.me/3BKNSPb

If you have any further questions please reach out to us and we'll be happy to assist you.

Hi John C,

Thanks for your explanation and the link.

Unfortunately, very few of the pre-set categories in QuickBooks Self Employed correspond with my self employed business, therefore most transactions end up as 'Other Business Expenses', which is far from ideal from an accounting point of view.

I have previously requested that Quickbooks gives the option of custom categories to users a number of times (as have other QBSE users) but these requests have so far been ignored.

Having the ability to customise categories which are relevant to our individual businesses would make QBSE a much more user friendly and satisfactory product.

At the moment is seems like a very simplified tax aid, rather than an accounting software - which is what it claims to be. Accounting software should have the ability to categorise income & expenses according to those used by the specific business.

I would like to request again that this is please considered and included in QBSE in future updates.

Thank you.

Hi JSSE, thanks for your feedback. We don't currently have any plans to introduce custom categories to QBSE and the product is designed to help customers complete their Self-Assessment tax return. 

As previously recommended, it would be advisable to switch to QuickBooks Online if you are in need of customisation for categories. Thanks for reaching Intuit support on the Community. We'll be here if you have any additional questions. 

Hello GeorgiaC,

Thanks for your message.

I was previously advised to request for the feature to be added - which I did - and that all requests would be considered once 50 votes were reached. However the system was not working and it took some months of communicating here before that fault was fully acknowledged and any improvements made to the feature request system. However it is still set up in such a way that very few users seems to see it or be aware of it - otherwise it is likely that more customers would be requesting this.

I am not financially in a position to pay the extra for Quickbooks online - and while Quickbooks continue to market and advertise QBSE as accounting software I think it is perfectly reasonable for customers to expect the features of accounting software.

If / when Quickbooks change their marketing to reflect that it is a basic tax aid software, not accounting software than it would be understandable that it doesn't offer the features that customers would expect from accounting software.

At the moment, it is still marketed and advertised as accounting software, therefore I am requesting that the features which would make it a more effective accounting software are provided.

Hi JSSE Thanks for your comments, we sincerely appreciate them. As we've previously mentioned the self-employed product is designed specifically to reflect the requirements of the HMRC SA103F, there are no plans to introduce custom categories and if our customers require such customisation they would have to change their product. We have however submitted your valued feedback to our developers for their consideration. 

Hello JohnC,

Thanks - yes, this has been previously mentioned. However as I mentioned above, Quickbooks continues to market and advertise the product as Accounting Software - despite you and others confirming several times that it is actually tax aid software - and that you have no intention of adding features that would make it proper accounting software.

I'm sure that the Trading Standards & Advertising Standards Authorities would agree that the marketing and advertising is therefore currently misleading to customers.

Please give this feedback to the product developers and to those in charge of marketing and advertising the QBSE product.

I believe that in the interest of transparency, honesty and integrity,  Quickbooks should either change their marketing of the product to reflect accurately what you are willing and prepared to provide to customers - or develop the product itself to provide an effective accounting software which it currently claims to be in the marketing and advertising, but does not actually provide in the product itself.

Hi JSSE All our products fall within the definition of an accounting software 'a system that is employed in a company to organize financial information'. The self-employed product is specifically designed to mirror and set out in accordance with the fields/requirements of HMRC/the SA103F. We have as you've requested submitted your latest comments to the relevant departments.

Hi JohnC,

Thanks - I guess that depends on whose definition you use.  The first definition that I found from an online search was "Accounting software is a computer program that assists bookkeepers and accountants in recording and reporting a firm’s financial transactions." By this definition I think that Quickbooks SE would fall short unless it adds more flexibility with custom categories. 

What you have described does fall within a definition of a tax return aid software - more than an accounting software.

Quick Books Self Employed is being advertised as an accounting software for self employed businesses - this does suggest that it would be suitable for keeping proper and full accounts for self employed businesses - in which it falls short. It does not offer the categories required to be an effective accounting software in that respect.

As a basic tax return calculator it works reasonably well and can be used for that purpose - but that is not how it is being advertised.

Since it is being advertised as Self Employed Business Accounting Software it would be nice if it provided the functions to do that job more effectively. Adding custom categories would improve its usefulness for this.

Hi JohnC,

Thanks - I guess that depends on whose definition you use.  The first definition that I found from an online search was "Accounting software is a computer program that assists bookkeepers and accountants in recording and reporting a firm’s financial transactions." By this definition I think that Quickbooks SE would fall short unless it adds more flexibility with custom categories. 

What you have described does fall within a definition of a tax return aid software - more than an accounting software.

Quick Books Self Employed is being advertised as an accounting software for self employed businesses - this does suggest that it would be suitable for keeping proper and full accounts for self employed businesses - in which it falls short. It does not offer the categories required to be an effective accounting software in that respect.

As a basic tax return calculator it works reasonably well and can be used for that purpose - but that is not how it is being advertised.

Since it is being advertised as Self Employed Business Accounting Software it would be nice if it provided the functions to do that job more effectively. Adding custom categories would improve its usefulness for this.

Both JohnC and GeorgiaC have described QBSE as a tax return aid rather than an accounting software.

Neither seem willing to recognise or acknowledge the difference between the two - other than to provide a loose 'definition' of an accounting software, and now seemingly ignore any further comments here.

Other definitions would state more specifically that ""Accounting software is a computer program that assists bookkeepers and accountants in recording and reporting a firm’s financial transactions." - QBSE does not currently fulfil this without providing users the ability to create proper categories relevant to their businesses.

Is anyone from Quickbooks Support able or willing to recognise and acknowledge the difference between the two?

QBSE does work as a basic tax return aid - it can add up income and expenses and can calculate a profit/loss  balance - but that seems to be all it is currently able to do.

If HMRC were to request to see a business's Self Employed Accounts - do you believe that what QBSE currently provides would be detailed enough and sufficient?

Or is it, in fact not actually a proper accounting software, and is actually just a tax return aid?

I understand your concerns regarding the certain features in QuickBooks Self-Employed (QBSE) and the definition of accounting software, JSSE. I'm here to provide a comprehensive answer to your questions and clarify any doubts that you may have.

QBSE is advertised as accounting software for self-employed individuals because it contains many of the essential features they need to manage their finances effectively. Although the program has limited features compared to QBO, it is designed to cater to the specific needs of self-employed individuals.

Additionally, QBSE offers several features that allow users to track their income, expenses, and tax deductions. It also enables users to estimate their quarterly taxes, import their transactions automatically and separate business and personal expenses. These features are particularly useful for self-employed individuals who want to keep track of their finances without the complexity of more advanced accounting solutions. 

However, if you require more detailed financial information or statements, such as cash flow statements and balance sheets, switching to QBO may be a better option for your business. QBO offers a free trial that you can use to test its features and see if they meet your requirements. Discounts are also available for first-time subscribers to QBO.

To know more about QBSE and QBO, you can visit these articles:

• QuickBooks Self-Employed Overview 
• Get started with QuickBooks Online

Please let me know if you have additional questions regarding QBSE, JSSE. We'll be around to help you further.  

Hi IrizA,

Thanks for your message.

While lengthier and more detailed that the contributions from the other 'support' staff, this does all still point to QBSE being a tax return aid, not actual Accounting Software.

You all seem to be saying that if users want the features that would make it actual Accounting Software we have to pay extra for a different product.

I still believe that because QBSE is advertised and marketed as Accounting Software, it should be providing those features already - without them it is merely a tax return aid.

My questions, which you didn't answer is still:

If HMRC were to request to see a business's Self Employed Accounts - do you believe that what QBSE currently provides would be detailed enough and sufficient?

Or is it, in fact not actually a proper accounting software, and is actually just a tax return aid?

Thanks for going back to this thread, JSSE. Allow me to answer question about the overview of QuickBooks Self-employed (QBSE).

QBSE product provides basic accounting features such as tracking income and expenses, invoicing and receipt capturing. This helps them in preparing tax returns. But this will not fully satisfy or provides HRMC request for more detailed financial information if your business needs complex accounting features since QBSE only has basic features.

However, if you wish to have a fully compliance accounting features, you can consider upgrading to our QuickBooks Online (QBO) products depending on what you need. For detailed and comprehensive accounting requirements, especially if HMRC were to request a thorough examination of your business’s accounts, QBO is the solution. QBO provides a full suite of accounting features including balance sheets, profit and loss statements, detailed transaction reports, and more which comply with HMRC's Making Tax Digital (MTD) regulations.

Additionally, you can run a report to have overview on your company's financial status.

Comment back to this post if you still have concerns about QBSE. I'm here to help. 

Hi RhoiceW,

Thanks for your message and finally getting closer to the facts and truth of the conversation.

I do appreciate that you have confirmed and acknowledged that QBSE would not be suitable to use as an accounting software if HMRC were to request accounts from a self employed business.

What you describe again confirms that QBSE is a Tax Return aid, not Accounting Software.

The features that you are calling 'advanced' are actually standard features of proper accounting software - the kind of features any self employed business would require in its accounting.

Again you are saying that users will need to pay more for software that has the features required for self employed accounting - therefore confirming that QBSE as it currently stands is not accounting software, but Tax Return aid software.

I don't need anyone to spell out again what QBSE does - I am familiar with its features and limitations, but it would appreciated if someone could give a clear and straight yes/no answer to the following question:

Is QBSE a software that can honestly fit this definition "Accounting software is a computer program that assists bookkeepers and accountants in recording and reporting a firm’s financial transactions."?

Thank you.

It would appreciated if someone could give a clear and straight yes/no answer to the following question:

Is QBSE a software that can honestly fit this definition "Accounting software is a computer program that assists bookkeepers and accountants in recording and reporting a firm’s financial transactions."?

Thank you.

Can someone from Quick Books please give a clear and straight yes/no answer to the following question:

Is QBSE a software that can honestly fit this definition "Accounting software is a computer program that assists bookkeepers and accountants in recording and reporting a firm’s financial transactions."?

Thank you.

Yes, JSSE. QuickBooks Self-Employed (QBSE) is an accounting software that assists bookkeepers and accountants in managing financial transactions and generating reports. However, certain limitations affect its suitability for more complex accounting needs.

QBSE excels in providing features such as income tracking, expense categorization, and tax preparation. While it operates on a single-entry bookkeeping model compared to more comprehensive accounting software, it still fulfills the functions of recording and reporting financial transactions that align with your definition.

For more information about our program, I encourage you to explore this valuable resource that provides a comprehensive overview: QuickBooks Self-Employed Overview.

Additionally, I'll provide an article with step-by-step instructions to help you effectively maximize the software’s functionalities: QuickBooks Self-Employed Guide.

I appreciate your insights and understand the importance of having tools that meet diverse business needs. We welcome you to use the Reply button for additional questions or concerns about specific features of our applications. My team and I are always available to provide the information and assistance you need.