This article was produced independently by our editorial team. Intuit QuickBooks provided a partnership fee to support our coverage; however, all opinions, research, and recommendations are our own.
Being a solo business owner is a lot of work. Not only are you trying to build up your business and attract new clientele or customers, but you’re also on your own for the back-end financial tasks. Monitoring cash flow, managing expenses, invoicing clients, accepting payments, and keeping detailed records for your tax filing are all important, but you’re not exactly a CPA.
That’s why many solopreneurs turn to accounting software to do most of the heavy lifting (and save them from spreadsheet overload). QuickBooks is a well-known name when it comes to smart and simple accounting tools, and there are a few options specifically designed for those who are self-employed or just getting a new business off the ground.
Your main options include QuickBooks Free, and two different tier levels of QuickBooks Solopreneur. This guide offers a breakdown of what tools and features each of these account types offer, examples of businesses that are a good fit for each, and specific questions to ask yourself to help you target the right account type for your solo business.
What is QuickBooks Free?
QuickBooks Free
Subscription cost
User access
Features
QuickBooks Free is the entry level, $0 version of the online accounting software. It is very basic with just a few simple features, but for some solopreneurs, that could be enough. The people most likely to find this account suitable are self-employed people, freelancers, or anyone just starting a new business who wants to remove some of the manual bookkeeping tasks from their plate.
Among the basic functions you’ll get with QuickBooks Free include income and expense tracking, simple reports, and the ability to send out up to two invoices per month.
What is QuickBooks Solopreneur?
QuickBooks Solopreneur
Subscription cost
User access
Features
For solo business owners who need a bit more support than is offered with QuickBooks Free, but who don’t need all of the bells and whistles of a full-fledged accounting program, QuickBooks Solopreneur can provide a happy medium.
In fact, there are two account levels so that business owners can select the right account based on their everyday operational finances and workflow.
The first tier is QuickBooks Solopreneur Lite. This level, priced at $20 per month as of this writing, upgrades the Free account by adding on a mobile app, allowing for unlimited invoicing, receipt capture and mileage tracking, and a few other tools.
If you find that your business has needs beyond the Lite account, then you can move to QuickBooks Solopreneur Simple Start. For $38 per month (as of this writing), you’ll have more automated functionality, advanced reporting, and can manage an unlimited number of contractors, among other features.
Head-to-head: QuickBooks Free vs. QuickBooks Solopreneur
Here’s a quick glance of what each account level has to offer.
QuickBooks Free vs. QuickBooks Solopreneur by business type
Which QuickBooks account is best for you? Let’s consider three hypothetical scenarios to see which one matches up most closely to your business.
Business 1
George just began a side gig building sets for community theater performances in his town. He works a few shows per year, but rarely has to send out more than one invoice per month. On occasion, he purchases equipment or tools and likes to be able to track those expenses and keep them separate from his personal finances, and he sometimes pays an assistant to help.
Best fit: QuickBooks Free
Business 2
Laura has a freelance graphic design business. She has several anchor clients and sends out an average of 8 to 10 invoices per month. She does not often have travel for work, and doesn’t use any contractors. She prefers to manage her own finances, only leaning on her accountant at tax time, but she prefers being able to take care of tasks via her mobile device.
Best fit: QuickBooks Solopreneur Lite
Business 3
Michael runs a solo business offering lawn care services. He has built up to 30 clients who are contracted for regular monthly maintenance, and he works with a handful of contract workers from time to time when he needs help with larger jobs. He has to keep track of equipment expenses and maintenance costs. Having accounting software that can help him set up recurring invoices and accept payment would allow him to replace the current system of handwritten invoices and in-person payment collection, as well as process payments and tax records for his 1099 workers.
Best fit: QuickBooks Solopreneur Simple Start
6 questions to help you choose the best version of QuickBooks for your business
The good news is that once you set up an account with QuickBooks, if you need to upgrade, you can do so at any time. But here are some questions that can help direct you to the appropriate level to start with.
How many invoices do you send out (or plan to send out) every month?
The QuickBooks Free level limits you to just two invoices per month, so if you already know that you have more than two regular clients you need to bill, that could be a key reason to start with the Lite version or higher.
Do you have contractors working for you?
A good accounting software can help you set up 1099s and pay contractors, but the number that you work with is another factor to consider when signing up for QuickBooks. QuickBooks Free can help you manage one contractor, Lite allows up to three, and Simple Start has no limit.
What type of business expenses do you have?
If you do the type of work in which you are constantly piling up paper or digital receipts to keep track of expenses, then it’s likely that you’ll want to look beyond the QuickBooks Free level and go for one of the Solopreneur accounts. On the other hand, if you basically run your whole business from your laptop and don’t have equipment or physical inventory to track, then the basic version may be adequate.
Do you track mileage for tax purposes?
If you provide ride or delivery services from your own vehicle, or say you run a pet grooming service out of a van, being able to track your mileage accurately can help lower your tax bill. In those cases, you’ll want to consider one of the Solopreneur accounts versus a QuickBooks Free account.
Would recurring payments be a helpful feature for you?
If you’ve built up a roster of regular clients and provide a monthly service, or if you work on retainer, accounting software that lets you set up recurring payments can save you lots of time. This feature is available with QuickBooks Solopreneur Simple Start.
Do you work regularly with an accountant?
If the only time you talk to your accountant is when you file your taxes, you might find that QuickBooks Free is perfect for you. However, if you prefer to loop in accounting guidance on a more frequent basis, you’ll need to go with a higher tier that allows an accountant access.
The takeaway
QuickBooks has a plan level suitable for just about every type of business. If you’re someone with very simple accounting needs looking to make a transition away from manual spreadsheets, you can try QuickBooks Free to see if the features are enough for your business.
If the nature of your business is that you work with outside contractors, have multiple clients, buy a lot of equipment, or need to track mileage regularly, then a more advanced, paid version of accounting software could be warranted. The good thing about QuickBooks Solopreneur is that there are two options—Lite and Simple Start—so you can find that “just right” level for your needs.
Frequently asked questions
Can the cost of QuickBooks be written off as a business expense?
Yes, if you pay for accounting software such as QuickBooks Solopreneur, it should qualify as a tax-deductible business expense.
Does QuickBooks Free have a mobile app?
No, you are not able to use QuickBooks Free via a mobile app. If you upgrade to a QuickBooks Solopreneur account, then there is an app that lets you access your account and manage finances via your mobile device.
Is it worth it to pay for QuickBooks Solopreneur?
Depending on the size and scope of your solo business and the financial bookkeeping it requires, it can be a worthwhile investment in your business to pay for QuickBooks Solopreneur. It can help simplify expense tracking for your Schedule C tax filing, let you send out invoices, and provide other features to cut down on your manual bookkeeping.
What type of businesses might be a good fit for QuickBooks Solopreneur?
One-person businesses and freelancers are the key target audience for QuickBooks Solopreneur. This can include a variety of business types including gig workers, delivery drivers, tutors, consultants, freelance writers, and Etsy sellers.
Can QuickBooks Solopreneur support S-corp businesses?
QuickBooks Solopreneur is designed for sole proprietors and LLCs, not for S-corp businesses. If you have an S-corp business model, work with business partners, hire employees, or maintain a full inventory of products, you will likely need a higher level of software, such as the QuickBooks Plus.