When it comes to personal finances and budgeting, Mint.com is without a doubt one of my faves. But it’s not really tailored for small business accounting, calculating quarterly taxes, monitoring your cash flow, or for viewing year-end tax reports.
That’s when I turn to GoDaddy Online Bookkeeping (previously called Outright) because it hits all those points for my freelance business.
It’s a simple, and secure, online program that allows small biz owners, who are freelancers, or run shops on Etsy, eBay, or Amazon. I’ve been a customer for over 3 years, and because of this I’ve added it my top 5 must-have online tools and apps for freelancers.
What is GoDaddy Online Bookkeeping?
GoDaddy Bookkeeping is a bit simpler to use and more convenient than an accounting program like QuickBooks. Which is why I prefer to use GoDaddy’s software over QuickBooks. If you run an online or ecommerce business, with an employee of one, you don’t need the added features and expense that QuickBooks provides.
GoDaddy Bookkeeping is more simplified, because it syncs with your bank account, and the transactions are automatically pulled in to your account, so there’s no complex adding or importing transactions. And it comes with bank-level security so your accounts are completely safe.
You can’t make transfers in and out of your GoDaddy Bookkeeping account, so no money moves around. It simply downloads your income and expenses, calculates your net profit, and produces tax reports based on your expense classification.
Here are the details:
- Costs less than $10 a month
- Safe and secure to use
- Tracks business expenses
- Prepare reports for estimated taxes
- Send invoices and collect payments
- Links to thousands of bank accounts
- Keep track of tax-deductible expenses (like; mileage, sales tax, subscriptions, licenses, office supplies)
If you sell a lot of goods or products via PayPal, it’s very helpful because it separates shipping fees/costs from selling and listing fees. Then at the end of each day, or month, it totals the income and shows your profit or loss.
How I use GoDaddy Bookkeeping for my biz
Upon linking ecommerce store, credit cards, or checking accounts, it will import transactions from the past few months. So you don’t have to go back and manually input anything, you’ll just have to make sure everything is categorized properly.
Verify profit and loss
As I mentioned, it’s easy to see profit and loss at a glance, every time you log into your account (or log into the mobile app, which is super convenient too). You can change the date to view income or expenses by year, month, or week.
Estimate and pay quarterly taxes
If your business is more than just a hobby, you have to calculate and submit quarterly estimated taxes (QETs). If you’re a sole-proprietor, generally you take your gross income for the past 3 months and multiply it times your income tax rate (which is usually 15-30%).
But if you have to pay state taxes this figure could be higher. So that’s why I use this program to calculate it for me.
Create and send invoices
In addition to managing your bank accounts, accounting info, and taxes, GoDaddy Bookkeeping allows you to sync an invoicing program, like Freshbooks or Harvest, or create your own invoices to get paid faster. They offer a handful of invoice templates built right in, and you can upload your own logo for even more customization.
Track clients and get paid
Track how much money you’re owed, what invoices have been paid, and who your best customers are. Link up your invoices to be paid via PayPal, Stripe (for credit cards), or Dwolla.
Check the box to have your clients automatically notified when an invoice is past due, so you can avoid that hassle. This feature even adds client/vendor contact information to your account so you can keep it for future use.
Create end-of-year tax reports
Every transaction within your GoDaddy account is categorized according to IRS approved Schedule C tax lines. This info will populate onto year-end reports, like a Schedule C, so as your transactions are being recorded your taxes are getting done at the same time.
GoDaddy pricing plans
Until a couple years ago, GoDaddy Bookkeeping was called Outright, and they offered a free version of the service. However, now you can only access the software via one of their paid plans, starting at $3.99 a month.
Here’s how the pricing breaks down.
What would make GoDaddy Bookkeeping better?
Well obviously having the free version back would allow you to test out the program without committing to anything. That’s how I first started using Outright (back when it was called that) and decided I liked it so much that I wanted to upgrade to premium.
Ultimately though, paying $120 or so each year is minimal compared to what other big accounting software programs charge. Or what paying an accountant to simply calculate your quarterly taxes might cost. So consider this before making your decision.
Another thing that this software doesn’t offer is the ability to track your time for the projects you do. Basically you create the invoices based on time you’ve clocked elsewhere, or you can use it for specific product sales.
In my personal experience, the online and app versions of GoDaddy Online Bookkeeping have been instrumental in keeping my business on track these past few years, and I plan to continue using their service.
The tax calculation features, and year-end tax reports are my secret weapon for making tax season such a breeze. I also like that I can manage my clients and invoices for projects, and see who still needs to pay me.