4 Best Tax-Saving Strategies for Freelancers

 Working as a freelancer and handling everything on your own is challenging!  Managing your financial accounts and filing taxes is like getting a major headache.  So, that is why hiring an experienced tax consultant for freelance workers is a good choice to make.  They offer many strategies to reduce your taxes.  Some of the main strategies are: 

1. File your taxes on time.  With the help of good tax filing software, you can accurately prepare and file your tax forms online.

2. Always keep track of your receipts.  It can help you better understand how you have spent your money throughout the year.

3. Hire family members and relatives as employees to reduce your taxes significantly.  Thus, you can get business tax deductions for reasonable compensation paid to family help.

4. It's best to determine what records you need in order to deduct all the expenses related to your business.

To hire professional income tax services for freelancers, get in touch with Agro Accounting CPA today.

Top 2 Reasons Why Freelancers Need a Professional Accountant

 Freelancing is a great job opportunity that allows you to manage your time, earn income on your terms, and get maximum returns on your labor.  However, it might be stressful and troublesome to do your own bookkeeping and accounting work.  So, it’s a good idea to hire a professional accounting firm to keep track of your finances.

This said, let’s take a look at the top two reasons why freelancers need a professional accountant:

 Time-Saving

Hiring a professional accounting firm that renders affordable accounting for freelancers can help you devote more time to earning money and honing your skills, instead of burdening yourself with accounting tasks.

Tax Preparation

Filing your taxes without any professional assistance can increase your chances of errors.  So, it’s good to hire a professional accounting firm that can make tax preparation for freelance workers hassle-free and smooth for you.

Wrapping Up

Experienced accounting professionals can not only guide you in managing your financial accounts and filing your taxes, but they can also guide you in making important business decisions in complex situations.

Agro Accounting CPA is one of the most renowned online accounting firms, providing affordable professional accounting services and guiding you in filing your tax returns in a way that will save you money on taxes.  Visit agroaccounting.com today!

Things Artists Should Know Before Filing Their Taxes

Like any other freelancer, an artist who has the intent to make a profit from their products or services is considered to be a business.  This means they are eligible to report earnings and losses and to deduct expenses.

1. Behave Like a Business

When artists report their income on Schedule C, they are agreeing with the IRS that they operate like a business, meaning they run the business to make profits.  However, people who make art without a profit are considered hobbyists and cannot deduct their expenses.

Keeping track of expenses can benefit artists.  These expenses can include things like studio rent or home studio space; art supplies, internet and phone bills, and more.  So, you can also include museum trips, research expenses, and travel expenses.  As an artist, you can even deduct travel expenses from visiting art fairs!

2. Use a Separate Bank Account for Your Art Activity

The IRS expects you to operate like a business, so you should refrain from mixing your personal and professional expenses under a single bank account or credit card.  This will also help you to calculate your taxes much more easily.  PS: Purchases you make on your business credit cards are a deductible business expense.

3. Find an Accountant Who is a Good Communicator

Finding a good accountant who helps with company income taxes for artists that won't leave you in the dark.  An accountant or tax advisor ensures that you don’t miss out on any deductions and also adhere to the tax code.

Agro Accounting is a trusted name in doing accounting for artists, freelancers, and small businesses.  You can contact us for tax preparation, accounting and business consulting, sales tax, bookkeeping, estimated tax calculations, tax relief options, and more.

2 Bookkeeping & Accounting Tips for Small Business Owners

You might be a small business owner that takes charge of various business operations.  However, keeping an accurate record of your finances and maintaining your accounts can be burdensome.  So, it's crucial to get affordable accounting for freelance workers to organize your financial accounts, whether you are keeping track of your monthly expenses, preparing your tax documentation, or paying your bills.

Let's explore two bookkeeping and accounting tips for small business owners.

1. Keep Business and Personal Finances Separate

As a freelancer, it's good to keep your personal bank and credit card accounts separate from your business ones.  Removing personal transactions from your business accounts can help reduce the number of transactions your bookkeeper needs to categorize and reconcile, for one :)

 

2. Get Reimbursed for Paid Business Expenses

 

You might face a difficult situation where you need to use your personal funds to pay for business expenses.  The company will then need to prepare a check to reimburse you for the expenses that you paid with your personal funds.

Wrapping Up

Managing your startup can be challenging, but you can reduce the workload by maintaining an accurate record of your finances from the very beginning.  Agro Accounting CPA is a renowned online accounting firm offering affordable accounting for freelancers.  Visit agroaccounting.com today for more details!

The Difference Between a CPA and an Accountant

 A CPA is a licensed accountant that has passed the CPA licensing examination, the latter which requires an accountant to meet certain eligibility conditions in order to even sit for the exam – such as work experience and education.  Concurrently, an accountant is an individual with a bachelor's degree in accounting.  CPA credentials are the main difference between a CPA and an accountant.  Not all accountants are CPAs, but all CPAs are accountants.

All 50 states require a bachelor's degree with at least 150 credit hours of coursework in order to become a licensed CPA.  Some states have minimum work requirements as well.  Generally, you should have one to two years of work experience to sit for the CPA examination.

If you are looking to hire an accountant for freelance workers to prepare your income tax returns, then it is always a good idea to hire a CPA.  A CPA is more skilled, qualified, and capable than a regular accountant.