A Few Tax-Simplifying Tips for Freelancers

Any growing business is easy to run when you have professional help, from managing cash flow and planning personal finances, to finding insurance.

While becoming your own boss is exciting, the extra work that you have during tax season can crush that excitement. If you are a full-time freelancer or are starting a side gig, the three tips listed below can help you get prepared for tax season.

1. Be Ready for More Forms

Be aware of the fact that your net profits are taxable. Get familiar with Schedule C—the form where sole proprietors report their business income and expenses. Also, keep in mind that you might need Schedule S.E. to calculate your self-employment taxes.

Hiring a professional accountant for freelancers is a great way to alleviate your tax hassles. However, if you are willing to do it yourself, then you need to be organized, confident, and operational in your specific business.

2. Get Organized

With self-employment, while you experience the excitement of managing your own business, you should also understand that your income is never constant, and often fluctuates. So, to avoid surprises during the year, estimate your tax liability. This way, if you are ever audited, you will be forced to prove the income and expenses on your tax return. To avoid such troubles, keep consistent records and save your financial documentation for at least three years.

Tip: If you feel helpless or stuck with your taxes, then employ income tax services for the self-employed from reliable professionals.

3. Understand 1099-NEC Forms

If your client pays you $600 or more during the year, you should probably get a 1099-NEC Form from them in January or February. This form demonstrates how much your client paid you over the tax year, for which you are required to report. Be as transparent as you can, because your client has the power to send a copy to the IRS, and the IRS will know what they paid you… even if you don't report that income on your tax return.

These are a few tips for freelancers in order to avoid further stress during tax season.

Common Questions that Arise Regarding Airbnb Tax Preparation

One of the most important questions that new Airbnb hosts face is how to report Airbnb income on your tax return. The professional Airbnb hosts that are earning a significant amount of money from the platform need to be proactive about Airbnb tax preparation. Here are a few questions and Airbnb tax preparation tips that can clarify any confusion you have regarding the process.

Do I have to pay Airbnb taxes on Airbnb income? 

Unless you rented your house out for less than 14 days and used it for more than 14 days yourself, you would have to pay Airbnb taxes on Airbnb income. And if you rent it out for less than 14 days and don't pay taxes on it, then you are not eligible for any deductions. 

What are the Airbnb taxes for a private room? 

If you don't rent out the entire property and instead rent private rooms for more than 14 days, you will have to calculate how to share the expenses with your personal use. This is when having an accountant can be beneficial for you. Hire someone who can calculate Airbnb tax deductions for you. 

Should I attempt to do my own Airbnb tax preparation? 

In every tax preparation guide for artists and entrepreneurs, it is recommended that you do not do your own Airbnb tax preparation unless you only have one property. But even then, it would be comparatively easier to submit all your income and deductions to an online tax preparation service. We cannot stress how important it is to hire a professional for Airbnb tax preparation! 

These are some of the common questions that might spring up while tackling your Airbnb tax preparation. Get in touch with Agro Accounting CPA at agroaccounting.com to learn about the process in detail.

How Agro Accounting CPA Has Simplified Company Income Taxes for Artists

Company income taxes for artists have always been a volatile topic of discussion. Whereas an artist tries to dedicate a considerable amount of time towards honing his/her skills, there is no possible excuse that, in order to do so, their company income taxes have to take a back seat. In such a situation, the ideal thing to do is to reach out to an online CPA platform that can offer accounting services to streamline your finances in the most efficient and stress-free manner. If you find yourself swarmed in a similar circumstance, then it is strongly recommended that you reach out to the official website of Agro Accounting CPA. The following is a list of points to support this emphatic recommendation. Read on in order to get the details. 

• Experience 

The online CPA platform has considerable experience in offering accounting services to artists, freelancers and creative entrepreneurs. This makes the online CPA platform well-versed in various creative industries, so it can provide you with the right accounting professionals to get the job done for you and to streamline your accounting well. 

• Budget-Friendly 

The accredited services offered by the online CPA platform are easy to fit within most people’s budget. You will be very impressed with the services you obtain, and you will find that they are worth every single penny that you spend with Agro Accounting CPA. 

• Easy Accessibility 

Agro Accounting CPA is an online CPA platform, which makes it easy for you to access the services they offer year-round, 24/7. 

Hopefully, all of the points presented in this article will persuade you to reach out to, and connect with, Agro Accounting CPA. Their online CPA platform can present you with a full-fledged tax preparation guide for entrepreneurs, freelance workers and artists. Connect with the official platform at agroaccounting.com in order to become familiar with the full details.

How to Stay on Top of Your Accounting During the Holiday Season

Irrespective of what the nature of your freelancing business is, the Holiday Season can significantly take a toll on your organizational skills. It is quite common for things to get a little chaotic when the Holiday Season knocks at your door. Thus, our esteemed accountant for freelance workers recommends that you make every possible effort to ensure your accounting is streamlined. The following is a distinctive list of tips that can help you stay on top of your accounting during the Holiday Season. Read on and acquire more details from us. 

  

● Start Early 

The most effective way in which you can help yourself stay sorted during the Holiday Season is by starting early. Provide yourself with the appropriate time to get the job done. 

● Speed Things Up with Software 

There are many softwares available online that you can use to catch up with the Holiday Season. 

● Hire an expert 

Nothing can speed things up like the assistance of an expert! 

Hopefully, the points discussed in this article will help you greatly with the management of your accounting. When you begin to realize that you are too swamped with work, such that you are having a tough time taking care of your bookkeeping and other aspects of your finances, it then is strongly suggested that you reach out to Agro Accounting CPA. Through a proprietary, online CPA platform, the firm has been offering clients the reliable services of a top accountant for freelance workers to take good care of your accounting. The accounting services rendered at Agro Accounting CPA are deemed to be some of the best across the United States! Connect with Agro Accounting CPA at agroaccounting.com to learn more.

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.

Tips to Help Small Businesses with Tax Preparation

The year 2020 can be labeled as a year of major change for the market. There have been many significant changes introduced by the IRS for businesses in order to help them survive the catastrophes of this… centennial year. The tax laws for income taxes for freelance workers and small businesses have been modified to a great extent. In order to save a significant amount of money through tax deductions and reporting them well, suspicion-free, it is important to familiarize yourself with these changes. The following is a list of helpful tips to support small-scale businesses in their tax filing endeavors. Go on and learn more. 

● Stay Organized 

To take good care of your accounting, it is essential that you make the best out of your organization skills. Whereas the market is chaotic in our unprecedented times, the more organized that you are, the more likely it is that you will find a way out of this chaos. 

● Use Accounting Software(s) 

There are multiple softwares available online for you to download your transactions into, so that you can keep a good track of your accounting. 

● Hire a Professional 

Simply put, a professional can guide you in the right manner to help your business grow well.

Sadly, there are many businesses that have succumbed to the economic atrocities brought by the Coronavirus pandemic. Also, there is a large number of businesses that are only hanging by a thread. Framed in this context, it is imperative that you make every effort possible to streamline your finances, such that your business can survive and succeed in these difficult times. It follows, experts strongly recommend that one reach out to an online CPA platform that can offer assistance with filing income taxes for freelance workers and for small businesses. Agro Accounting CPA is one such online CPA platform that can assist you through these tough times. Visit the official website of Agro Accounting CPA in order to get more details.

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.