In a decade, half of the population of the United States will be freelancing if the current trend doesn’t change. While there are people that do freelancing at a side hassle, there are those that have chosen to assume control of their careers and do it 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.
A good number of people uses their personal account instead of having a separate business account because they are basically their own boss and this is not good. 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. 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 is software like the Intuit Quickbooks that can really help you keep track of things if this is not your strong suit, and there are those that help you create a paystub if you ever need to hire an indecent 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. The other accounting professionals hire an accounting professionals, no matter how unnecessary it may see. Accounting professionals will make sure that you are ready for the IRS auditing if it ever happens and get you the tax breaks that you never knew about, and then there will be less stress to deal with.
This is one of the jobs that requires you to have personal discipline and work ethics if you are to successes base to one will be on your shoulders with what to do. There are applications that can help you with the routine and the time managements. There is also lots of information online on how to do stuff like making more space for your home-office like the Simple DIY tips. 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.