Bookkeeping and tax software for US self-employed sellers and small businesses.
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Why we pick it
- Works with
Suits you if your reselling has become a business and you want income, costs and a running tax estimate in one place. It pulls in your bank and card transactions and sorts them into Schedule C categories.
Our approved alternative for the same job: QuickBooks
The guide
Each step in the order you'll need it.
Self-employed sellers on several platforms
Your reselling has become a side business or a full-time one, you sell on several platforms, and you want income, costs and taxes in one place. QuickBooks has plans for solo sellers and for small businesses with staff.
It suits you if you want an estimate of your quarterly taxes through the year instead of a surprise in April.
You probably sell on two or more platforms, have a separate business bank account and process enough transactions that a spreadsheet can't keep up.
Bank feeds, receipts and Schedule C
QuickBooks connects to your business bank and cards, sorts transactions into categories, and captures receipts from your phone. Its solo plans group costs the way the IRS Schedule C does, which saves a step at tax time.
Plans differ in invoicing, inventory tracking and users; the QuickBooks US site lists current pricing and the features on each plan.
Try the mobile app too. If you source at thrift stores, estate sales or garage sales, snap each receipt on the spot so your costs stay complete.
Getting your shop into QuickBooks
Link your business bank account and any payout accounts. Create categories that match your selling: inventory bought, shipping, packaging, platform fees and equipment such as your label printer.
Tag each sale and cost as it arrives. At the end of each quarter, review the summary and set money aside for the estimated tax payment.
Set up rules for repeat transactions, such as monthly platform subscriptions or regular packaging orders, and QuickBooks will categorize them as they arrive.
Xero, a spreadsheet and your tax preparer
Xero suits a growing business that wants a large app marketplace and unlimited users on every plan.
A well-kept spreadsheet plus each marketplace's annual sales report still works under a few hundred orders a year, and costs nothing.
Ask your accountant or tax preparer which software they use before you choose. If you use the same software, they can log in to your file instead of asking you for exports.
Kit for this step
Records the IRS expects
Keep records of your sales, fees and costs and the receipts behind them. Marketplaces and payment apps send a Form 1099-K once your payments pass the federal reporting threshold, and the IRS gets a copy, so your books should match it; irs.gov has the current threshold.
Record inventory purchases as you go, and you can work out profit per item and see which categories earn their shelf space.
Keep a mileage log too if you drive to estate sales, auctions or the post office. The IRS standard mileage rate may let you deduct those miles; its guidance on business expenses sets out the rules.
Common mistakes
Each one costs you money or reviews, and each has a fix.
- Split each marketplace payout into sales and fees. If you book a payout as one lump of income, you can't see what you pay the platform.
- If you pay cash at a garage sale, photograph the receipt or write one on the spot, or the cost drops out of your books.
- Keep a separate business account: business purchases on your personal card clutter the bank feed.
- Tag transactions weekly. If you leave the books until March, tax season gets stressful.
- If family use takes half the home printer's output, deduct only the business share; the full cost overstates expenses.
Guides that use it
Step-by-step help where this product does a job.
Questions
Straight answers to what sellers ask about this.
Does QuickBooks file my taxes?
QuickBooks keeps the books and estimates what you owe. You still file your return yourself, with tax software or through a preparer, using the figures it produces.
Can a sole proprietor use QuickBooks?
Yes. QuickBooks offers solo plans aimed at the self-employed as well as plans for companies.
Does it track inventory?
Some plans include inventory tracking; the plan details on the QuickBooks US site show which.
How much does QuickBooks cost?
Pricing changes with plans and offers. The QuickBooks US site has the current figures.
Can QuickBooks estimate my quarterly taxes?
QuickBooks shows a running estimate based on the records you keep, which helps you set money aside for each quarterly payment.
Can I move from QuickBooks to other software later?
You can export your data, though switching mid-year means extra work. A change on January 1 keeps it simpler.
Alternatives
Other picks for the same job, cheaper and pricier.
FreeAgent
FreeAgent files UK returns only, so it does not suit a US seller. For US books, use the Sage pick on this page, or any app that exports a Schedule C summary for your tax preparer.
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Sage
Sage sells an accounting plan in the US, but its free starter plan is a UK product. For a US seller we point to QuickBooks, which more US tax preparers use and which groups costs the way Schedule C does.
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Xero
Suits you once your shop has inventory, invoices and maybe a helper. It pulls details from receipts you photograph, and your accountant can see the books live.
Typical priceCheck current pricing
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