When you start freelancing, it comes with a range of challenges. Before – it used to be your manager or the company who took care of everything. Now, you are the one who is responsible for managing all of your business activities. When you work for a firm, you simply ask for a W-4 Form, fill in the details, and are done with taxes. But, as a freelancer, it is not that simple or easy. You need to learn what portion of your home’s rent and utility expenses you can write off, for example, and what expenses you are not eligible to deduct. Thus, you need an expert accountant for freelance workers to guide you through your taxes.
3 reasons why freelancers need an accountant for tax preparation:
1. They do not know how to prepare taxes
Freelancers may be highly skilled in their area(s) of work, but they might not be skilled in doing tax calculations, navigating through tax laws, and deciding the right form for filing taxes. Thus, they need an expert accountant for accurate tax preparation for freelance workers. An expert accountant knows how to prepare taxes in order to maximize tax savings.
2. They do not have the time to prepare taxes
You can prepare taxes on your own if you are well-aware of the tax forms, qualified business expenses, state tax rules, special tax exemptions for your industry, and other such tax know-hows. If you do not know these rules, then it might take you days (or more!) to learn them and to prepare taxes on your own. Not every freelancer has the time to prepare taxes on their own.
3. It is simply not worth preparing taxes on one’s own
If you charge $40 per hour and spend 20 hours doing your taxes on your own, then it would cost you $800 in lost work opportunity. At the same time, a CPA can prepare your taxes for $300. Thus, choosing a CPA is an affordable accounting option for freelance workers!
If you are looking for income tax services for freelancers, then get in touch with Agro Accounting CPA for tax preparation for freelance workers.
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