Freelancer’s Finance Tips That You Should Know About.
Freelancing business trend is rising and if this trend doesn’t change, more than 50% of the United States population will in the freelancing business in a decade. There are people that take this as a part time job and others choose to take charge of their careers and do this full time. It is obvious that there are so many pros of being a freelancer, but the cons are also therefore and one of them is the finance where many people learn the hard way which can be lead to costly mistakes. Here some of the tips to make sure that this don’t happen to you.
A good number of people uses their personal account instead of having a separate business account because they are basically their own boss and this is not good. You will be wasting unnecessary time and energy trying to figure out which of the transactions are businesses related and which ones are actually personal transactions. You will also easily write off the purchases when that tax time comes, and you will get less scrutiny from the IRS. The taxes is the other thing that you should not forget, and part from the annual income return tax filing, there will also be the estimated quarterly taxes In additional to filing yearly income return.
There is software like the Intuit Quickbooks that can really help you keep track of things if this is not your strong suit, and there are those that help you create a paystub if you ever need to hire an indecent contractor.
There are times that the clients are sparse, and this is one of the reasons why you should have some emergency funds. These funds should be enough to cater a half a year’s expenses for everything lest you will be taking any job even the ones that you don’t like. You may not think that you need a finance manager to take care of your finances, but you won’t believe how wrong you are. these are the professionals that will help you get ready for any IURS scrutiny or audited, and also show you the tax breaks you didn’t know about.
It is easy to get distracted and lazy with the freelancing job, and this is why it is very vital that you have strong work ethic and discipline. There are applications that can help you with the routine and the time managements. There are also the simple DIT tips online, that can help you with things that you did not know and can handle yourself like making the most use of the available home-office space. You should not be afraid of venturing out on your own and taking charge of your career, because the freedom that you get will be second to none.
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