Finance Tips For the Freelancers.
In a decade, half of the population of the United States will be freelancing if the current trend doesn’t change. 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. There are so many advantages of working as a freelancer, but with the finances a good number of people are forced to acquire knowledge and know stuff along the way and this can cause some pretty expensive mistake. 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. You will be wasting unnecessary time and energy trying to figure out which of the transactions are businesses related and which ones are actually personal transactions. You will also not have problem with the IRS and their scrutiny, as writing off the purchases during tax time will be easier. On the taxes, apart from the annual income return, you will also have to pay the estimated quarterly estimated returns because you are running a business now and are self-employed.
There are software like the Intuit Quickbooks that can help you keep up if you are having issues with that, and others that can help you create a paystub that will come in handy should you ever wat to hire an independent contractor.
There will be low seasons her too, and this is why you should have an emergency fund. These funds should be enough to cater a half a year’s expenses for everything lest you will be taking any job even the ones that you don’t like. 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.
It is easy to get distracted and lazy with the freelancing job, and this is why it is very vital that you have strong work ethic and discipline. There are applications that can help you with the routine and the time managements. There are also the simple DIY tips that will help you with the many issues like home-office space that you should make use of. 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.