Save Money and Pay Less Taxes

Most people envy a freelancer's life: it seems unrestricted, commute-free and business attire -free. Also, freelancers get plenty of time to do the things they love. We think there is nothing that bothers them, and that simply isn’t true. There is at least one thing that bothers them: taxes!

During the first year, taxes seem so effortless to the uninitiated freelancer. There is no pressure to make any payment as it’s all presumably done after year-end, in the next spring. It would behoove such freelancer to seek the assistance of a professional who offers tax preparation to entrepreneurs as soon as possible. Let us go through the ways in which a freelancer can save money on taxes.

• Work with a Tax Professional. Freelancers should always have an accountant by their side. Hire one that deals with freelancers and small business owners. Having an accountant that can perform tax preparation for entrepreneurs can seem expensive versus DIY software, but it is an investment that will save you money, time and headaches in the long run. Someone who is not good with numbers and doesn’t want to pay more in taxes than necessary should get the help of such a tax professional.

• Know what you need to Pay and how much. Know the type of taxes you are required to pay along with their amounts. A full-time salaried person would have taxes deducted automatically from their pay-check. On the other hand, if you own a home, are married and have children, and/or you have income-related expenses the way a freelancer does, then you will be able to maximize your deductions and reduce your tax bill greatly.

• Keep Track of your Receipts. Keep email and digital receipts, and make a spreadsheet for each of your expense categories. A freelancer can easily track and provide, when needed, deductions in this manner. If you don’t have time to look after these things, then hire a bookkeeper who will work with your accounting expert in tax preparation for entrepreneurs.

Follow these tips and save your hard-earned money from overpaying on taxes. It would be best to consult with someone who does tax preparation for entrepreneurs in order to make this happen flawlessly.

Four Quick Accounting Tips for Success-bound Freelancers

Messes in your accounting can precipitate your business to go down the drain.  If you are a freelancer and work hard to manage your income, even a little error in recording your financial activity can cost you.  Connect with an efficient service that offers affordable accounting for freelancers to ensure errors don't occur.

There are numerous issues concerning accounting.  Below are some tips that can help you stay safe with all of your accounting and avoid any problems.

1. Keep your business records separate.  Mixing up your personal and professional records can go wrong in many ways.  Maintain your business bank account separately and manage your business expenses from that fund only.

2. Keep track of your transactions.  Whether it is incoming payments or expenses, make sure you are aware of it all.  Keep track of where your money goes and how much you have been saving.

3. Consider outsourcing the bookkeeping work.  Bookkeeping can be a time-consuming and complicated process.  Most freelancers don’t have enough time, or have a lack of understanding about how to manage their bank accounts.  Outsourcing your bookkeeping needs could be a good approach, making accounting and tax preparation for freelancers easier and error-free.

4. Get organized and establish a budget.  Accounting is easier when you have your expense budget maintained. Without a planned budget, there is always the chance that you'll end up exceeding available funds for business operations.

Business accounting often leaves the impression of being a complicated task, but freelancers don’t have to face that difficulty when they acquire help from accounting experts.  It will not only save you time, it will also allow you to be more focused on your business growth.