As a new tax season approaches, freelancers should start maintaining their financial accounting records for their annual tax filing. But, filing taxes can be burdensome. Hiring an accountant for freelance workers is a wise step to save money on taxes. An accountant can simplify your tax filing process while allowing you to focus on other business tasks.
So, these are the must-have documents that a freelancer should provide their accountant for seamless tax preparation:
Profit and Loss Report
The profit and loss report compares all your business's revenues to your business's expenses in a particular year. This report helps you know your business's net profit or loss.
Expense Report
The IRS requires freelancers to keep a detailed record of their business expenses. An expense report is documentation that records your expenses with totals for each expense category for the year. You can provide this report to your accountant to reduce your tax burden.
Mileage Report
You can deduct the miles that you drive in your car, for business purposes, from your total income. You can create a mileage report, which organizes and maintains these records, for your accountant.
Tax Summary Report
You can prepare a tax summary report to provide relevant information to your accountant and tax consultant for freelance workers. This report is crucial if you collect client taxes on your invoices.
Wrapping Up
As a freelancer, you need expert financial accounting and tax filing knowledge. Agro Accounting CPA follows effective practices for tax filing and helps you with tax documentation to ease your stress during tax preparation for freelance workers. Consult with us at agroaccounting.com today to learn more!