Tax Planning Strategies for Startups to Gear Up for Tax Filing in 2024!

Are you a newbie entrepreneur with an innovativе idеa that will launch your startup? Sounds great! Sеtting up your business is indееd еxciting and challenging. Efficient handling of thе kеy responsibilities is essential to kееp your newborn businеss on track. Instead of lеaving еvеrything to thе last minute, it's crucial to prepare well in advance for thе upcoming tax sеason. Tax planning for frееlancе workеrs can еasе your worries and save you big on taxes. But, why еxactly does a startup ownеr nееd to plan for taxеs? Let's find out:

Why Does a Newbie Startup Ownеr Nееd to Plan For Taxеs?

Planning for taxes bеforе tax season lowers the tax burdеn of a startup ownеr. It hеlps sеlf-еmployеd individuals to stay compliant with statе and fеdеral tax rеgulations. Staying up-to-date with thе currеnt tax laws can save your startup from penalties or fines that the IRS imposes. Also, careful tax planning hеlps rеducе your annual taxеs by deducting thе expenses and taking the credits that collectively reduce your tax.

Kickstart Your Startup with Tax Planning Strategies in 2024!

Dealing with taxes can sееm complеx and strеssful for a startup ownеr. But, you can makе things еasiеr! An еxpеrt tax consultant for frееlancе workеrs can provide guidancе and support to help dеal with taxes bеforеhand. Let's look at some tax planning strategies that can simplify your tax filing work in 2024:

Sеlеct an Ideal Businеss Structurе

Basеd on thе type of businеss you'rе managing, you can sеlеct a suitable businеss structure for your startup. You can choose from businеss structurеs likе small businеss corporations, limited liability companies (LLCs), and solе propriеtorships. Each of these businesses offer diffеrеnt tax bеnеfits to thеir ownеr. If you want a simple tax filing process, a solе propriеtorship can be a good choice.

Maximizе Your Dеductions

Another tax planning strategy is understanding your tax crеdits or dеductions. Taking thе bеnеfit of deductions can help reduce your taxеs in 2024. As a sеlf-еmployеd individual, dеducting your eligible expenses can hеlp rеducе your quartеrly taxеs. It's best to classify your deductions undеr separate catеgoriеs for morе tax savings. You can prеparе a list of your dеductions, lіkе marketing expenses and office supplies.

Offеr Bеnеfits to Employееs

Providing benefits to employees is a great way to boost their satisfaction and to rеtain thеm. Startup owners can dеduct cеrtain employee bеnеfits from their incomе. Employее bеnеfits can include parking costs, еmployее stock options, and group-tеrm lifе insurancе.

Get Smooth Tax Prеparation for Entrеprеnеurs from Agro Accounting CPA!

Even though you might havе a grеat businеss idеa, undеrstanding your taxеs is nеcеssary. Thеsе tax planning strategies can reduce your tax burdеn and improve your business's profitability. Agro Accounting CPA has a team of skillеd tax professionals who can assist you with a smooth and hasslе-frее tax preparation for entrepreneurs. For more information, fееl frее to visit agroaccounting.com!

Top 3 Reasons Startups Should Hire Income Tax Services

Starting a new business can be a daunting task.  You’ll have to look after various business tasks, and managing your finances and taxes is one of them.  As this is an important aspect of running a business, it is recommended that you hire professional services for tax preparation for entrepreneurs.  Below, we share the top three reasons why startups should hire income tax services.

1. Professionals are specialized in handling tax-related issues.  They can help you understand the tax requirements of your business, so that you can comply with them.

2. Hiring income tax services can save startups time and money.  It helps avoid the cost of hiring and training an in-house tax professional and lets you focus on core business tasks.

3. A lack of tax knowledge can lead to mistakes and penalties.  Hiring professionals is wise, as it helps startups avoid such mistakes and penalties – by ensuring compliance with the tax laws and regulations.

When looking for professional tax preparation services, reach out to Agro Accounting CPA.  Visit our website, agroaccounting.com, to learn more today!

Mastering Bookkeeping: Best Practices for Business Success and Affordable Accounting for Freelancers

Bookkeeping is an essential part of running a successful business.  Proper bookkeeping practices can help entrepreneurs and freelancers keep track of their finances, monitor their cash flow, and make informed decisions about their business operations.  This post will explore some of the best bookkeeping practices to help you succeed in your business.  We will also cover some key topics, including affordable accounting for freelancers, income taxes for freelance workers, and tax preparation for entrepreneurs.

Keep Accurate Records: Keep track of all your financial transactions, including income and expenses, in a clear and organized manner.  It will help you monitor your cash flow, identify trends, and make informed financial decisions.

Follow Internal Controls: To minimize business fraud or negligence, you should include internal controls in your small business bookkeeping.  Establishing internal controls involves controlling financial processes, such as giving or receiving payments.  For example, you can allow one employee to create a check, ask one for bank reconciliation, and ask another to sign it for payment.

Separate Business and Personal Finances: Keep your business and personal finances separate.  It will help you avoid confusion and make it easier to track your business expenses for tax purposes.

Plan for Taxes: Tax preparation for entrepreneurs can be challenging, so you should plan for your income taxes throughout the year, setting aside money to cover your tax obligations.  Freelancers and entrepreneurs should also consider working with a tax professional to ensure they take advantage of all available deductions and credits.

Reconcile Your Accounts: Reconcile your bank and credit card accounts regularly to ensure that your records are accurate and up-to-date.  It will help you avoid errors and catch any discrepancies early on.

At Agro Accounting, we offer affordable accounting services for freelancers and entrepreneurs.  We can help you with income tax preparation, bookkeeping, and other financial services to ensure that your business is on track for success.  Contact us today to learn more about how we can help you achieve your business goals.

Bookkeeping Best Practices for Entrepreneurs

Bookkeeping is a crucial part of the accounting process that refers to recording a business’s financial transactions in organized financial accounts.  Although you can hire professionals for bookkeeping and tax preparation for entrepreneurs, here are some bookkeeping best practices you must know:

• Keep your personal and business finances separate and avoid using your business funds for personal use.

• Take the help of a professional to choose the right accounting method for your business and let them handle the accounts-related tasks of the business.

• Using good accounting software can also help make bookkeeping hassle-free.  So, take advantage of advanced technology to manage your business’s bookkeeping tasks.

Managing accounting and bookkeeping efficiently is crucial for the success of a small business.  You can reach out to Agro Accounting CPA to hire CPAs who can help manage the bookkeeping, accounting, and tax-related tasks of your business. 

Visit the website, agroaccounting.com, to learn more.

How to Make Accounting Affordable as a Freelancer

The best way to make accounting affordable for freelancers is to follow the hybrid approach. There are a few accounting tasks that you can do by yourself. But some tasks are best performed by software and, for other tasks, you need the support of a Certified Public Accountant. For example, bookkeeping is an integral part of conveyancing. Using bookkeeping software is the best way to manage it.

Similarly, for optimizing income tax returns, you need an expert accountant who can calculate, prepare, and report business tax deductions accurately. On the other hand, if your freelance business is not yet “on the map,” you can prepare your income tax returns yourself with the help of a tax preparation guide for freelancers. Nevertheless, when it comes to complex accounting tasks such as tax planning and financial planning, you should hire a professional accountant for freelancers.

Top Tips to Stay in Control of Your Business Accounts

As an entrepreneur or a freelancer, you might find yourself overwhelmed by the different aspects of managing your company. Unfortunately, bookkeeping, invoicing, and accounting have a poor reputation as being one of the most time-consuming and monotonous parts of running a business. However, with the help of a few tips and an accountant specializing in income tax services for the self-employed, these tedious tasks can become well-managed.

Tips for Staying on Top of Your Business Accounts

1. Get your invoicing down

Invoicing is important for running a business. Ensure that you develop a business that works in the best ways for you. Take time out to evaluate the invoicing system that will be effective for your business.

2. Set up a different business bank account

Separating your business bank account from your personal one is an easy process. By doing this, you will be able to protect your accounts, and it will make it easy to manage the finances of your company.

3. Keep your income and finances up-to-date

It can take some time for business owners and freelancers to input all of their expenses. However, taking this simple step can help you stay away from countless headaches down the road.

4. Follow up with your customers

One of the biggest issues for small business owners is not receiving payments from their customers. For this, gently remind your customers that their payment is still pending.

5. Create a bad debt reserve or allowance

The unfortunate part of running a business is that you might come across a customer(s) who is unwilling to pay for your service/product! In such times, having a backup or a bad debt reserve will disallow this fact of life from having a larger impact on your overall business.

6. Connect with a professional accountant

It is important to get a professional overview of your business accounts. It ensures that they are all balanced and ready for tax reporting. In addition, an accountant can help you with tax preparation for entrepreneurs for you to stay ahead with the accounting, bookkeeping, and invoicing aspects of your business.

Conclusion

With these tips, you will be able to quickly and easily keep track of your business expenses and accounting. Plus, you will have extra time that you can use to focus on the more exciting parts of your business. For professional help, get in touch with Agro Accounting CPA.

How Artists can Benefit from Doing Income Taxes with Online Accounting

Online accounting or e-accounting is the application of internet technologies to the business accounting function. Everything is the same in online accounting: the entire process has simply moved online. Many well-reputed income tax service firms for the self-employed have shifted to online accounting. Have a look at the five main benefits of online accounting for artists.

1. Get Rid of Paperwork

Online accounting reduces your reliance on paperwork. It eliminates the need to print information on physical sheets, store it, and deal with a bundle of paperwork. You can access all of your information online and download digital documents by logging into your account.

2. Affordable

Online accounting companies have online platforms that allow them to directly transfer documents to their clients, which removes the costs of printing and postage. This eventually reduces the price of online accounting services and offers affordable accounting for artists.

3. Mobile Access

You can access key accounting information anytime, anywhere. Online accounting uses cloud servers to safely store data and records in encrypted form. You can easily access all your information by using your smartphone or laptop.

4. Secure Document Transfer

You can send all of your documents to your accountant online, through a secured exchange portal. You get all the accounting services from the comfort of your home! Accounting firms that do income taxes for artists have document exchange portals fully compliant with IRS security requirements.

5. Easy Tracking

You can easily track your expenses and income with online accounting. All of your information is available on easy-to-read sheets where you can easily go through all your financial information for the last months. For example, you have all information about your outstanding debts and a clear breakdown of how much you owe in taxes. This helps give you improved control of your core finances and taxes.

What Happens If You Fail to Pay Your Taxes

The Internal Revenue Service will not let you off the hook if you fail to pay your taxes! You can avoid a situation like this if you pay your taxes timely throughout the year instead of waiting for April 15. Generally, employees have taxes withheld from their salaries. However, freelancers or self-employed people can pay taxes every three months directly to the IRS.

If you need more information on income taxes, consult with the Agro Accounting CPA experts or hire our income tax services for the self-employed. Here, let’s start with the possible outcomes of not paying your taxes on time:

Pay a Penalty Fee

Are you failing to file your taxes or failing to pay your taxes? There’s a huge difference between the two.

If you fail to file your taxes by the due date, there will be a penalty of 5% of the tax owed for up to five months. If you take longer than 60 days after the due date, then you will get hit with a minimum penalty of $210 or 100% of the tax owed, whichever is lower. For example, if the tax owed is $210 or less, the penalty will be the same as the total tax amount due. If the tax amount exceeds $210, the penalty will be at least $210.

Warning Letters from the IRS

Nobody wants mail from the Internal Revenue Service. It's not like the IRS doesn't give you a chance - it gives many. But before taking any strict legal action, they send you a warning letter.

The best thing to do after getting a letter is to reach out to the IRS office. The authorities might look kindly on you as you admit your carelessness, unlike those who have been lining their cat’s litter box with the IRS’ letters. You may get a chance to negotiate a payment plan or even reduce the total tax amount due.

Can’t Apply for a Loan

If you fail to pay your income taxes, you might get into a lot of trouble. You may not be able to apply for a home loan, business loan, or vehicle loan. Banks or lenders need to see copies of your most recent tax returns before giving you a loan. Nobody gives a loan to someone who isn't consistent with filing or paying their tax returns.

The IRS Can Seize Your Property

In Publication 594, the IRS has made it clear that the agency can sell your car or property in order to clear out your outstanding tax in some scenarios. The publication also states that if there is money left after the sale of your property, you will get a refund of it.

To learn more about taxes or to obtain a tax preparation guide for artists and entrepreneurs, feel free to connect with Agro Accounting CPA.

How to Compare the Costs of Different Tax Preparation Options

Almost everyone who is making money in the U.S. has to pay taxes. The thing with taxes is they are a little complex to prepare, calculate, and file. Some people do their taxes by themselves, some people use tax preparation software, and others hire professional accountants or income tax services to prepare their taxes. All of these options are fine. However, each has its own pros and cons, and you have to choose the right option for you. For example, if you are a salaried employee who is earning income from a single source, you need to file your taxes using a W-2 form. There is no need to hire an accounting firm. On the other hand, if you are a freelancer who is earning income from multiple sources and needs to prepare a tax return with itemized deductions, it is a good idea to hire a specialized accountant for freelancers to prepare your tax returns. Similarly, some DIY taxpayers with reasonable knowledge of tax laws can easily prepare their taxes using tax preparation software.

Have a look at the cost comparison of tax preparation under all three options:

1. Hiring an Accountant for Tax Preparation

According to Investopedia, the average cost of hiring a Certified Public Accountant (CPA) to prepare and submit a Form 1040 and State tax return with no itemized deductions is $176, while the average fee for an itemized Form 1040 and a State tax return is $273. If you are a self-employed individual and need to hire a CPA to prepare an itemized Form 1040 with a Schedule C and a State tax return form, the average fee increases to $457. So you can expect to pay $146 to $457 for your tax preparation.

2. Using Accounting Software

The cost to prepare taxes using accounting software varies from $0 to $130. Some accounting software are free but provide only basic features. For complex tax preparation, you need a premium version.

3. DIY Tax Preparation

DIY tax preparation is almost free. It only costs you time! The IRS estimates that individuals will need to spend approximately 11 hours preparing their own returns in 2022.

Which option(s) do you prefer? Let us know in the comments section below.

Benefits of Hiring a Tax Consultant for Freelance Workers

Tax consultants are professional Certified Public Accountants who are experts in tax preparation. Many small businesses, freelancers, and independent artists hire specialized tax consultants for freelance workers to prepare and report taxes for them.

Hiring a professional accountant has a wide range of benefits that includes:

Reducing Taxable Income

Professional accountants know the intricacies of tax laws, allowing them to find business deductions that reduce your taxable income and save you money on taxes. Additionally, they also help in tax planning for freelance workers.

Flawless Tax Preparation and Reporting

Professionals have the right tools, skills, and knowledge, and apply attention to detail to accurately calculate, report, and file taxes. They know how to do taxes correctly the first time.

Audit Representation

Your professional accountant can also help you with audit representation in case your tax return is audited. This helps you to defend your rights when necessary.

Because of the reasons listed above, it would be a good idea to hire a tax consultant for preparing and planning your taxes.

Bookkeeping Suggestions from an Accountant for Freelancers

You have recently been introduced to the world of freelancing and you are bound to commit some silly mistakes at first. The faster you learn, you will see, the better chances you will have at gaining success in your line of business. When you finally come across a large and continuous inflow of cash, it is likely that you will have a tough time keeping track of it! You would then realize how essential it is for you to level up your bookkeeping skills to meet the challenge at par. The following is a short list of cornerstone suggestions from a seasoned accountant for freelancers, to help you streamline your bookkeeping effectively and easily. Read on, as we get into the details: 

• Always have backup 

There always is a risk of losing data in the event of a hardware failure. Make sure that you have a backup of all essential data. 

• Online ledgers 

Offline records can not only be clumsy, but inaccurate as well. It is essential that you make use of various online applications and platforms to help you track your finances in the most reliable and efficient manner. 

Hopefully, the two pointers mentioned in this article will make your professional life a bit easier, as a freelancer. If you ever feel a need for expert support in streamlining your finances and accounting, reach out to Agro Accounting CPA with no hesitation. This is because their online CPA platform has been serving freelancers for nearly a decade. Hence, it can offer you the leverage of working in a new ‘way of work-life’ that you are not quite familiar with. Use the skills of a highly experienced accountant for freelancers to help your business grow. Connect with the official website of Agro Accounting CPA in order to learn more.

6 Expenses You Can Add to Your Tax Preparation for Freelancers

When you are a freelancer or small business owner, you might assemble people to help you in your work and, in this way, you lead your business as an entrepreneur. You can add the following expenses to your tax preparation for Freelancers in order to get “tax perks.” 

1. Write-Off the Cost of Inventories - When you write off the cost of inventories (whether you sell goods online or offline), these items get deducted from your total revenues. Your total taxable revenues are decreased, then. So, when you write off inventory costs, you pay taxes only on your profit and not on your entire revenues. Basic enough, yet it will save you a big chunk of money! 

2. Work Trips - When you take work trips, in your own car or by many other means, you are allowed to write off the allocable cost of your business trips. To find out more, you should consider talking to an accountant for Freelancers and obtain their professional advice. 

3. Home Office - As a freelancer, in general, you start off by working from home. If you dedicate a place in your house completely to work, then you can write off the allocable cost of your house - after evaluating the square footage of your office in relation to the size of your [entire] home. 

4. Utilities you Use at Home - More ways to save on income taxes for freelance workers! When you use utilities like electricity and water - also your telephone and Internet, your Netflix (for creative inspiration) and other things too - then a part of these expenses can be written off. After all, you are using them for work purposes too! 

5. Insurance - When you are not working for an employer and are consequently not covered by anyone else’s insurance policies, if you pay insurance for your work (business liability insurance) and yourself (health insurance), then you can write them all off. 

6. Other Freelancers’ Hiring Costs - So, you started off as a freelancer and now run your business and are a successful entrepreneur, right? Well, when you hire [other] freelancers to help you in your work, according to our accountant for Freelancers, you can write off the costs of your freelancers’ help too. If you pay them more than $600, make sure to issue them a Form 1099-NEC at year-end.

How Much Income Tax Do Freelancers Have to Pay?

In 2019, 57 million people in the US indulged in freelancing work, and most of them reported earning handsome amounts. Everything is good as a freelancer: no boss, no timing restrictions, no extra expenses, no office, etc. The only thing that can trouble freelancers is income taxes for freelance workers, which sometimes seem unfair. If your net income during the year, as a freelancer, is more than just $400, you are liable to pay tax. So, it can be tough being a freelancer in the US! 

Recently, President Trump issued an executive order guiding the US Department of the Treasury to defer payroll taxes from September 1, 2020, to December 31, 2020. The executive order announced a deferral on the 6.2% employee’s share of Social Security tax, but it does not clearly say anything about self-employed or freelance workers. 

Today, in this blog post, we will discuss how much income tax a freelancer has to pay, typical deduction categories for freelancers and, first of all, discuss, how US tax law sees a freelancer. 

Employed vs. Self-Employed 

There is no such term as “freelancer” existing in the eyes of the law. Workers are primarily divided into two categories: Employed and Self-Employed. 

Employed workers are regularly salaried people employed by an employer. The employer manages taxes for its employees. 

Self-employed workers are those people that are self-employed and work directly for clients. They are their own boss and manage their own taxes, usually by themselves or with the help of a specialized accountant for freelance workers. Freelancers and business owners fall into this category. 

Now, let's find out how much income tax freelancers have to pay. 

Taxes Paid by a Freelancer 

A freelancer has to pay two types of tax: regular income tax and self-employment tax. All workers pay (“regular”) income tax, but freelancers are also liable to pay self-employment tax. Freelancers have to pay 15.3% of self-employment tax, which includes Social Security tax and Medicare tax. To follow, a regularly salaried person who works for an employer is also liable to pay a payroll tax, which is usually shared by both employer and employee. An employee pays a 6.2% Social Security tax and 1.45% Medicare tax, and an equal share is paid by his or her employer. However, as a freelancer is considered both an employee and an employer, a freelancer has to pay both parts. 

Deduction Categories for Freelancers 

Tax laws may seem a little unfair toward freelancers, yet there are many deductions available for them as well, which a regular employee cannot avail. Here are four primary tax deduction categories for freelancers:

Home Office 

If you are working as a freelancer, most probably, you have a home office. The IRS allows you to write off the expenses related to your home office, such as rent and cost of utilities. Nonetheless, it is your responsibility to ensure you are not using home office space or utilities for personal use. Writing off personal expenses may incur penalties. For this reason, it is advisable to hire an accountant for freelance workers while filing your income taxes, to become familiar with specific IRS rules and to avoid making important mistakes. 

Equipment 

If you are purchasing equipment for work purposes, then it is eligible for tax deductions. Such tax benefits are not available to regular employees. 

Education 

The IRS also allows you to write off the education costs incurred in upskilling to meet your business’ requirements. Your continuing education and certification costs are tax-deductible! 

Travel and Meal Expenses 

Lastly for this blog, you can also include business-related food and travel expenses at a rate of 50% in your tax deductions. However, it is strictly advised to separate your personal and business expenses in order to avoid any potential conflict with the IRS. As it is actually quite easy to make mistakes while filing your taxes when freelancing, experts advocate hiring an accountant consultant for freelancers to avoid any surprises.

Tips to Help Business Continuity During a Pandemic

COVID—19 has successfully turned our lives upside down. No walk of life remains untouched by it, yet small businesses and freelance workers have been severely thrashed by the pandemic. Nonetheless, the government has made tremendous efforts to make it easier for small businesses and freelance workers to make it through the pandemic. It is up to entrepreneurs to make the best use of available assistance and resources at their disposal. The following is a list of tips by accountant consultants for freelance workers to help small scale businesses to continue as a going concern, as the pandemic pushes on. Read on, plunge into the details.

                                

Do a Business Impact Analysis

Before you can fix a problem, it is important to understand the intensity of the impact that, in this case, the COVID-19 has made on your business. Once you get the facts, you will be able to see the big picture more clearly and, after, you can start to deal with the concerns on hand.

Do Business Modeling

Business modeling is a great way to determine your plan of action in order to get yourself out of this mess. Create models of the various possible outcomes your business could consider.

                                   

Risk Analysis and Mapping

Once you are through with modeling your possible courses of action, move on to risk analysis in order to determine if your selected plan is good for your business or not.

The current times are extremely tough for freelance workers and small businesses, yet don’t have the misconception that this is “as bad as it gets.” If you do not get a hold of your business now, then things might catastrophically get out of hand sooner than later. That said, please make use of the abovementioned tips from accountant consultants for freelance workers in order to establish firm, steady ground for your business’ comeback.

Tips to Make Accounting for Freelancers a Smooth Process

As the concept of freelancing builds intrigue in the minds of people, people have started to consider it as a lucrative way to earn income. Though the idea initially seems exciting, it sure comes with a lot of challenges. The job of a freelancer isn’t easy. Handling everything on your own can be strenuous at times. And, with plenty already on your plate, managing your accounting can seem like a burden. We bring you a list of tips that can help you make tax preparation for entrepreneurs easy and hassle-free. Check these tips out.

• Don’t fall behind on financial recordkeeping

This is one of the most important things to consider during your initial time in the freelance niche. Do everything you can to not lose track of your financial records. If you are a new freelancer, then you need to be well-aware of the fact that... you are on your own now. And, you cannot afford to fall behind on your financial recordkeeping. You must at least periodically keep your records updated. 

• Don’t throw away your receipts

This is one of the most memorable pieces of advice professional income tax services for self-employed can give you. Every time you buy, say, a piece of equipment for your office, make sure to not throw out the receipt. It will act as proof, in the future, that you spent your business’ assets (funds) on the business itself. The tax authorities usually frown upon spending business funds on non-business items. So if you keep your receipts, then you’ll be able to prove what you bought with your business money. 

• Work with financial professionals

As a finance novice, you should always consult with professionals. No matter how proficient you are in your field, there is always room for improvement in things accounting and finance. Working with professional accounting services can help you gain knowledge on it to a great extent.

Managing income taxes for freelance workers can become a whole lot easier with these “tricks.” Try them out and let us know how they work out for you!

Pave your Way to Business Success with an Accountant

Financial planning is one of the most critical skill-sets to possess as an entrepreneur. It’s important to know where your money is going and to find out ways to save it for rainy days.

Emphasis is always on business growth. It is also good to hire an accountant that can come up with ways to save your company money on income taxes for self-employed. Let us see how hiring an accountant will help your business flourish in the years to come:

• Get all relevant Deductions. All people in business want to save money on taxes. An accountant will identify potential applicable deductions for you and will offer advice on those deductions. Also, it is difficult for a person in business to stay up-to-date with tax laws when they are continually changing. All of these things are taken care of by a good accountant.

• Save Time, Energy and your Sanity. Entrepreneurs sometimes think that due to a tight budget, they are unable to afford an accountant. However, they actually would save a lot of money by not getting into the accounting themselves. Instead, spend all of your time and energy on your business!

• Plan for the Future. An accountant can offer you advice for future tax and financial planning. Together, you can pull your reports from past months and examine any seasonal changes in your business.

Accounting isn’t just about taking care of receipts and invoices that have piled up at the end of the year. Hiring someone who has hands-on experience in handling company income taxes of self-employed individuals can result in business success in the long run.

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.