QuickBooks is a commonly used accounting system for small businesses. There are several options when considering QuickBooks.

QB Self-Employed. The least expensive is QB Self-Employed. This is a single entry accounting systems which means is not easily upgraded to other versions later because it does not retain all the same data as a full, or double entry accounting system. You cannot obtain a Balance Sheet with this version, nor can you create your own account names, but you can run a Profit and Loss statement. For many small business, this option can work well but Quickbooks online is also a good option due to the extra functions.

QB Online: QuickBooks Online is a cloud based, double entry system that meets the needs of most small businesses. The Simple Start version will produce all needed accounting reports. You can create your own accounts and easily upgrade to Essentials or Plus versions later if you need multiple users or additional features.

QB Desktop:  QuickBooks Desktop version is a software that loads on your computer and is not cloud based. This avoids the monthly fee for the service and instead you can upgrade when needed by buying a new package.

QuickBooks often runs promotional pricing for their Self-Employed and Online products, but pay attention to the price you will pay once the promotion ends. This is the amount you want to ensure you can afford monthly.

An accounting system does not need to be accounting software. You can use a spreadsheet, either one you create yourself or one someone else created for you. 

It's best to have a spreadsheet that includes the revenue and expenses on one page, and shows the totals for each month. 

Simple Profit has two spreadsheets you can download. One is a basic spreadsheet that is simple and easy to use. The other is an advanced version where you take a download from your bank and assign categories to each transaction, that will automatically populate on a profit and loss statement. Both come with video instructions and support if you have problems.

Join the membership to get access to both spreadsheets. 

There are a number of other choices for accounting software.

Wave apps is a free accounting software that works well. It does more than Quickbooks self-employed but has fewer reporting options than Quickbooks Online or Desktop. 

Xero is an accounting system used by accountants and business users. It is a full accounting system and works well.

Freshbooks is a user friendly system well liked by some business users but not often used by accountants. 

If you want to have a tax professional have access to your accounting system, they most often will use Quickbooks or Xero. 

Although QuickBooks has a good reputation for accounting software, they do not have a good reputation for payroll service. Thankfully many other payroll service providers will interface with QuickBooks and other accounting software. 

Commonly used and well liked payroll service providers include Gusto, Square Payroll and Patriot Payroll. ADP and Paychex are also popular but can be pricey; you may be able to get a discount going through your accountant. 

If your business is a sole proprietor or LLC, you will NOT use a payroll service for the owners pay. If your business is an S-Corp you will need payroll for the owners pay. 

If you are looking to hire employees, the Simple Profit Hiring Blog. 

Estimated taxes are due if you expect to owe over $1,000 in tax that won't be withheld from a paycheck. This means most self-employed individuals and partnerships will need to pay estimated taxes. 

When we work for an employer they withhold tax from each paycheck, and the employer has to pay the money in each quarter. A self-employed business owner does the same thing via estimated taxes.

Typically federal estimated taxes are due on the following dates:

• April 15th (Jan-Mar estimate)
• June 15th (Apr-May estimate)
• September 15th (Jun-Aug estimate)
• January 15th (Sep-Dec estimate)

These dates can change if the date falls on a weekend or holiday. For example, January 15, 2022 falls on a Sunday and Monday is Martin Luther King, Jr. Day so the final estimated tax payment for 2021 is due Tuesday, January 18, 2022.

The dates can also change if the government decides to change the date, as happened several times during the pandemic. 

Most states follow the federal estimated tax dates, but they can differ so check your state government website for estimated tax deadlines. If you owe local income tax, estimated taxes may be due for those as well. 

Possibly. The IRS does not give taxpayers a pass on paying estimated tax just because it is their first year in business. However, if you did not have any business, job or other income in the prior year, you may not need to pay estimated tax. It's still a good idea anyway.

If you traded a W2 job for a self-employed business, the IRS may expect you pay in at least as much as you paid last year if your income will be as high or higher. However, you may not have any tax due if you made very little and if your income is lower you can pay a lower amount in estimated tax.

Look at your prior year tax filing and see if the total tax line is $0, not the refund or amount owed, but the total tax line. If total tax is $0, you do not have to pay estimated taxes this year. However, you may still get a large tax bill and so you are encouraged to save and/or pay estimates EVEN IF not required.

Many recommend saving 30% of your net income from business (revenue less expenses x 30%) for taxes. That may work out fine but the challenge is that it's too high for many and too low for some. 

Federal taxes can range from 15% to over 30%. State and local income taxes can range from 0% to over 12%. You can imagine that someone who needs to pay 17% will not want to save the same amount as someone who needs to pay 33%.

To know what you actually need to save requires a tax analysis. You can do this yourself if you are savvy with your taxes, you can pay a professional to help you or you can go through the Simple Profit estimated tax tutorial and get tools and information to help you determine your tax estimate. This option has the advantage of being able to update your analysis whenever you need to, and not waiting to talk to your accountant every time your income projection shifts.  

Understanding your tax situation can be extremely helpful since much of this is not very complicated once you know a few basics.