In summary, if you prefer total simplicity and don’t keep track of your inventory, QBSE may be the way to go. If you use the accrual method of tracking your inventory (deducting when sold), you can still use work-around methods or track those things outside of the software, you just won’t have the full picture within QBSE. This is perfect if you are using the cash method of tracking inventory (deducting when purchased rather than when sold). In other words, QBSE can’t directly track your inventory.Įvery time you purchase inventory, your purchases will likely be categorized to the “cost of goods sold” expense account. QBSE has profit-and-loss account capabilities only, meaning sales and expenses. It includes accounts such as cash, accounts receivable, inventory, loans payable, owner’s distributions, etc. The Balance Sheet is a financial statement that shows you your assets, liabilities, and equity. One of the biggest differences between QBO and QBSE in my mind is the fact that QBSE does not have any Balance Sheet accounts. It also does a good job and helping you estimate what you should be setting aside and paying for your quarterly estimated tax payments. The main QBSE profit & loss report format is the same as what you’ll see on your tax form (Schedule C). It’s designed to make it easier for people whose main reason for bookkeeping is tax related. You should be continually assessing your profitability.īut for those who are more concerned with the tax aspect than they are with the profitability, QBSE might be a good option. That’s why I often tell resellers they should be tracking their business transactions. Paying your taxes is important, but it’s probably not the main reason you’re in business. For those who don’t follow that advice, QBSE makes it simple to separate out your business from your personal transactions. The first piece of advice I generally give to new small business owners is to open a separate business bank account. QBSE was designed with freelancers and independent contractors in mind. Those with fairly simple business structures might want to consider this option. Intuit has another cloud-based bookkeeping solution called QuickBooks Self-Employed (QBSE), which is totally separate from QuickBooks Online. But that comes with a learning curve and possibly a level of complexity that some people don’t want to deal with.

The bottom line is that QBO will be able to do what you need it to. Rather than describe each in detail, I’ll just say that the Simple Start package suffices for most beginning resellers. QuickBooks Online comes in 3 packages: Simple Start, Essentials, and Plus.

Many accountants have been stubborn about switching to QBO because it still lacks the robust capabilities of QuickBooks Desktop.īut QBO is continually quickly catching up, and one big advantage is the ability to log into your account from anywhere, at any time. QuickBooks Desktop requires installation on your computer. QBO is Intuit’s cloud-based version of their original desktop bookkeeping program (QuickBooks Desktop). Over the last few years, Intuit has been making a massive push to get users subscribed to QuickBooks Online (QBO). Here are the basics of what you should know. Even I (as a CPA) was a bit confused about what version of QuickBooks I should be using when I started looking into it for the first time. QuickBooks is made by Intuit, the same company who runs TurboTax and .īut that doesn’t all make it any less intimidating if bookkeeping is new to you. That’s because it’s the top rated small-business accounting software and is widely used by millions. If you have ever looked into the various bookkeeping options for your reselling business, you have likely heard about QuickBooks.

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