An important aspect is to make sure you categorize your expenses properly so they line up. That way, you won’t have to worry when tax season rolls around. This will save you time and money when you are ready to file your taxes. But once you’ve got your software set up, your job isn’t done! The best way to keep your bookkeeping stress-free is to spend a few minutes a week managing your accounts (we’ll cover more in a moment). That means making sure your spending aligns with the proper tax bracket, staying on top of customer billing and payment processing, and updating your prices to reflect what you’re currently charging. A few minutes can save you having to spend hours at the end of the year doing all of this.
You may also be interested in: 5 tools for billing freelancers without headaches Hire an accountant Owning an accountant may seem like. A luxury your freelance business can’t afford. But you’d be surprised how affordable one can be. Because. You don’t need 40 hours Dominica Email List a week of bookkeeping assistance. Can hire the services of a small business accountant for a few hours a month. What you get during those hours is up to you. But can include: billing customers Overdue Payment. Tracking Pay your business expenses Correctly categorize expenses Review of accounting reports. tax return If you still prefer to do your own bookkeeping, working with an accountant, at least temporarily, can still help.
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She can teach you the ins and outs of your accounting software and help you set it up to make sure you have your expense categories and sales tax entry correct. If you’re having a hard time doing your own bookkeeping, hiring help could be the best investment you could make for your business. And the biggest bonus? An accountant will be able to take the headache out of filing your taxes in April. If you’ve ever tried to file your own taxes, you know that feeling of insecurity that you might be doing it wrong or that you’ll end up being audited. While an accountant or CPA cannot guarantee that he or she will not be audited, they are aware of recent tax laws and can help you make sure your taxes are filed correctly. 3. Get paid faster No one knows better than freelancers how stressful it is not to get paid on time.
You have your own invoices and you need your clients to pay you as soon as possible. There are several communication tactics you can take with customers to handle late payment and/or non-payment. Instead of sending multiple follow-up emails that go unanswered, you can try invoice factoring as a viable option. Factoring works like this: When you have unpaid bills. You can get financing up to the amount customers owe you. With a factoring company. A factoring company will advance you the full amount or a percentage owed by your customer. And then collect payment once your customer has paid the invoice. The benefit of invoice factoring is that you can get cash when you need it. Instead of waiting until your customers are up to paying you.
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Some invoice factoring companies integrate with accounting software, making it easy to manage. It may be worth the fee you pay to access cash, but ideally you’ll learn how to manage your finances so you always have money in the bank and don’t have to borrow. Still, knowing you can access cash at any time can give you peace of mind during tough times. 4. Keep your records up to date It may seem like a hassle to continually review your accounting, update your records, and properly categorize your expenses. But trust me, in the long run you’ll be glad you did. Like I said before, it’s much easier to spend 10 minutes a month doing this than hours at the end of the year. There are a few logs you should be aware of: Bank and company information.