If the current trend doesn’t change, half of the America’s population will be in the freelancing. 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. It is obvious that there are so many pros of being a freelancer, but the cons are also therefore and one of them is the finance where many people learn the hard way which can be lead to costly mistakes. Here are some of the information that you need to avoid the common mistakes when working for yourself as a freelancer.
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 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 are times that the clients are sparse, and this is one of the reasons why you should have some emergency funds. These funds should be enough to cater a half a year’s expenses for everything lest you will be taking any … Read More..