Launching a Side Hustle: Choosing the Right QuickBooks Product and Payment Processor
Hello fellow entrepreneurs!
I’m reaching out for some expert advice as I dive into a new venture. Allow me to provide a brief overview and then outline my main queries.
Business Background
I’m taking over a well-established window screen repair business, handed down from a friend who is relocating. With my LLC incorporation completed, I am the sole operator. The business is relatively low-cost, being run from my garage with materials ordered as needed. It predominantly operates on a drop-off basis, eliminating any need for travel. As for payment methods, I’m considering the option to accept credit card payments in person.
The clientele consists of about 80% new customers and 20% returning, the latter mostly being contractors. With revenue projections between $2,000 and $4,000 per month based on historical data, the business has thrived primarily through word-of-mouth without significant marketing efforts. Our online presence is minimal, limited to a basic Facebook page and a few Yelp and Google reviews.
Choosing a QuickBooks Product
I’m inclined toward QuickBooks Solopreneur (QBSolo) because it integrates seamlessly with TurboTax, which I already use for personal taxes. This could simplify the tax filing process each year. My wife, who is a self-employed hair stylist, uses QuickBooks Self-Employed, and her account conveniently connects to our family’s TurboTax for tax filing. Thus, I would set up a separate QBSolo account for my business.
Here are my requirements:
– Filing quarterly self-employment taxes
– Sending electronic invoices to clients
– Capturing receipts
Additionally, while integrated payment processing would be ideal, it’s not a necessity. QBSolo’s pricing starts at $10 monthly for the first year and increases to $20 thereafter, which seems reasonable.
Question: Is QB Solopreneur the right choice for me? I’m open to alternatives, particularly if they integrate well with TurboTax.
Selecting a Payment Processor
The previous business owner accepted only cash, checks, and Venmo to avoid processing fees, so navigating this aspect is new territory for me.
Criteria:
1. A payment processor that can seamlessly transfer processing fees to customers would be beneficial. I’m aware of QB Payments but am under the impression it’s not mandatory with QBSolo.
2. My understanding is that a payment processor interacts directly with my bank account and
One Comment
Hi there!
It’s exciting to hear about your new venture in the window screen repair business! Transitioning ownership can be a significant step, and it’s great that you’re seeking advice on essential tools to manage your operations effectively.
Regarding your question on QuickBooks Solopreneur (QBSolo), it seems like a suitable option for your needs, especially since you value the integration with TurboTax. The capability to file quarterly self-employment taxes, send electronic invoices, and capture receipts are all essential functionalities that QBSolo offers. Just ensure that you look into its reporting features as well; they can be quite helpful for financial tracking and making informed business decisions.
As for payment processing, you might also consider Square or PayPal as alternatives. Both platforms offer user-friendly integrations and can seamlessly process credit card transactions with minimal setup. They also generally allow you to pass on processing fees to customers, which aligns with your criteria. Another aspect to explore is contactless payments, which have become increasingly popular, especially for local businesses focusing on convenience.
Lastly, since your business has thrived primarily on word-of-mouth, you may want to think about ways to enhance your online presence. A simple website or an updated social media strategy could help attract more clients and showcase customer testimonials.
Best of luck with your side hustle! It sounds like you’re on the right track, and I look forward to hearing more about your progress!