Freelancing business trend is rising and if this trend doesn’t change, more than 50% of the United States population will in the freelancing business in a decade. There are people that take this as a part time job and others choose to take charge of their careers and do this full time. Despite the fact that the upsides of freelancing are so many, there are downs of the same like finances where many people learn as they go and this could cause not very cheap mistakes. Here some of the tips to make sure that this don’t happen to you.
Since you are the boss, you might be tempted to use your personal account as the business account and this is not advisable. The lasts thing that you need is wasting time and energy trying to figure out which transactions are personal and which ones are businesses related. You will also easily write off the purchases when that tax time comes, and you will get less scrutiny from the IRS. The taxes is the other thing that you should not forget, and part from the annual income return tax filing, there will also be the estimated quarterly taxes In additional to filing yearly income return.
There are software like the Quickbooks that can help you stay on top of this if you are having trouble, and there are also others that allow outsourcing should you ever want to hire independent contractors like the create a paystub.
There are times that the clients are sparse, and this is one of the reasons why you should have some emergency funds. The amount should be enough to cater of expenses for six months, because otherwise you will be desperate e for employment and will have to take anything that comes your way. You may not think that you need a finance manager to take care of your finances, but you won’t believe how wrong you are. these are the professionals that will help you get ready for any IURS scrutiny or audited, and also show you the tax breaks you didn’t know about.
There will be no one to boss you around with the assignments and it is up to you therefore to have some strong work ethics and discipline. There are apps that help you keep time and schedule the routine will come in handy here. There are also the simple DIT tips online, that can help you with things that you did not know and can handle yourself like making the most use of the available home-office space. You should not be afraid of venturing out on your own and taking charge of your career, because the freedom that you get will be second to none.