When it comes to personal finances and budgeting, Personal Capital is a very popular favorite. And with good reason!
But what about managing your business finances?
Personal Capital isn’t tailored for small business accounting, calculating quarterly taxes, monitoring your cash flow, or for viewing year-end tax reports.
That’s when to GoDaddy Bookkeeping (previously called Outright) comes in, because it hits all those points for any 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.
When looking for the best online accounting systems you can’t go wrong with GoDaddy Online Bookkeeping. It offers excellent features for any kind of online business, from freelancing to selling products or digital courses.
What is GoDaddy Bookkeeping?
GoDaddy Bookkeeping is a bit easier to use and more convenient than an accounting program like QuickBooks Self-Employed. Which is why I prefer to use GoDaddy’s software over QBSE.
GoDaddy Bookkeeping is more simplified, because it syncs with your bank account, PayPal or Amazon 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 or Etsy, 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 to use GoDaddy Bookkeeping
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 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. It’s simple to use GoDaddy Bookkeeping to calculate quarterly taxes.
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.
Track time on multiple projects
If you’re a business owner who works on various projects at once, or a freelancer who has to manage multiple clients, you’ll love the Timesheet feature.
Simply add a time entry to the calendar and then check the “billable” box if it applies to a specific client. You can then use this information to export to a new invoice and send the client your bill.
You can keep track of projects monthly or weekly,so you can be sure you’re earning enough to pay the bills during each period.
Think of it as a cash flow projection for your business!
The GoDaddy Bookkeeping mobile app
One of the main reasons you’ll enjoy using GoDaddy Bookkeeping is because of their mobile app. It’s seriously all encompassing and allows you to manage your freelance or business finances on the go.
At first, when you download the GDB app from the app store you’re probably shocked at how “simple” the app design and logo is.
It’s amazing once you get into it!
Link invoice payments
By far one of the most amazing features on the GDB mobile app is the “Add Payment” feature under the “Invoices” section.
When someone pays your invoice using PayPal or direct deposit, you can use the “Link Payment” button which then searches through all of your recent deposit transactions.
You can then click the “Link” button and it will confirm payment for that invoice from that linked transaction.
See the below screenshots from my own mobile app Invoicing section.
Enter transactions once
Likewise, you can choose to enter a payment manually, like when you receive cash or a check in the mail.
The program then pays this specific invoice and and creates a deposit transactions for you!
Most invoicing programs force you to create two transactions, one for the invoice payment and one for the account listing transaction. But with GoDaddy Bookkeeping you can avoid the additional transaction and streamline it with just one.
It’s soooooooo nice for saving time!
You can also track your mileage, view customized graphs for expenses or income, or even invoicing (outstanding, paid, etc). And all of these transactions can be edited and categorized on the go.
Again, you’ll really, really love the app!
GoDaddy Bookkeeping pricing plans
Until a few 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.
I personally pay for the premium version, which I pay all at once annually (so it costs me $124 a year with tax).
Totally worth it to have all the features including invoicing, tax estimates, Schedule C and graphs for reporting.
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 it used to be back when it was called Outright but today, in order to use GoDaddy Bookkeeping you’ll have to upgrade. 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. On the flip side, if your business picks up significantly you may want to contact an accountant.
“It pays to seek professional advice, particularly early on” says Moswen James, an IRS-authorized tax professional with Get Help Tax and Bookkeeping.
“Many of our clients who are online business owners had their bookkeeping up-to-date but were unaware of strategies that could have saved them significantly in taxes.”
So consider this before making your decision!
The tax calculation features, and year-end tax reports are my secret weapon for making tax season such a breeze.
You can also manage client info, invoices and estimates for projects, and see who still needs to pay your invoices.
Click here to get started using GoDaddy Bookkeeping today!