Accounting for Freelancers

When you start out as a freelancer, the accounting requirements are usually pretty simple. You know your expenses and how much you are earning. However, as your business starts to grow so do your expenses and earnings, so it would be a good idea to take a look at software for accounting to take care of all your bookkeeping requirements.   Good accounting system software will help you keep track of your expenses and who owes you money.

Accounting Plan

The accounting plan for your business will take into consideration the following factors:

•    Will you hire an accountant to handle your money matters or would you purchase accounting software?
•    What type of bookkeeping system will you use?
•    What kind of business bank account would you open?
•    Will you use a business credit card? How will it be used?
•    How often do you plan to send out the invoices and what are the terms of payment?
•    What type of system will you use for filing receipts and recording deposits?

If your business has just started, you might not want to spend money hiring an accountant. What you can do is seek out advice on proper ways to set up your books. If the money is really tight, you can do the basic accounting yourself. Just collect all the receipts and paid invoices and remember to update your ledger on a weekly basis. Then at the end of the year you could hand over your ledger, receipts, and paid invoices to an accountant.

The major problem with doing the accounting yourself is that you would not know until the end of the year how your business is performing. You might be under the impression that you have been making a profit, while in reality you are taking a loss.

Accounting System Software

What you can do is invest in software for accounting to keep track of all your finances. Accounting system software will not only help you save time and money, but will also give you an insight into the true picture of your business.

Take A Class To Help You With Basic Accounting

There are many of us who do not know anything about accounting. Terms like cash flow, credits, debits, financial statement, etc. confuse us. It’s a good idea to join a class that would help you learn the basics about accounting. There are many simple accounting software programs that deal specifically with accounting for freelancers or small business accounting. Understanding the basics would help you maintain your bookkeeping the proper way.

Overall, without a proper accounting system in place, your business cannot expand. So setting up an accounting system should be your topmost priority.

Mariela Perez-Simons, provides  SEO (search engine optimization), Internet marketing, website design, and website translations in the Greensboro / High Point / Winston Salem area.
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We recommend Merchant’s Mirror accounting system software, the next evolution in accounting for many businesses. It breaks the mold of traditional accounting systems and challenges what we usually think of when we refer to bookkeeping software.

5 Good Reasons to File an Income Tax Extension

With not much time remaining until the April 15 IRS income tax deadline, many Americans are scrambling to finalize their income tax returns. This year, a growing percentage of taxpayers will choose to file an IRS income tax extension, which will postpone their tax deadline to October 15.

If you’re considering filing an income tax extension, you’re not alone. The IRS recently estimated that 10.2 million of the 140 million tax filers will file for a tax extension this year. What’s more, approximately 2 million of those extensions will be electronically filed online.

File Later tax extension service – a popular website where taxpayers can file their income tax extension – compiled the following list of reasons why taxpayers should consider joining the growing trend of taxpayers filing a tax ex tension rather than stress about getting their returns completed by April 15.

Although the IRS doesn’t care (or ask) why millions of taxpaying Americans file for extensions every year, you may find these valuable:

1. Accountants and tax professionals are much busier in April than they are in October. Getting the proper amount of time with an accountant gets harder and harder the longer you wait leading up to April 15. Extending your income tax deadline to October 15 will give your accountant or tax pro that extra time to focus on your tax return, which may mean extra tax savings in your pocket.

2. Filing an income tax extension may reduce your chance of audit. IRS auditors have quotas they need to meet every year on the number of returns audited. Returns are sorted for auditors by filing date, and most auditors will have met their quotas before they get to extended returns.

3. Getting paperwork together to complete your taxes isn’t easy. Organizing that shoebox of W2s, 1099s, mortgage interest statements, and receipts can take longer than you expect. Giving yourself the extra time needed will ensure you’re taxes are done right, and extending will give you extra time to track down any additional deductions so you’re getting the biggest tax return possible.

4. For business owners, funding retirement plans such as Simplified Employee Pensions (SEPs) or SIMPLE IRA’s can be expensive. Filing for an income tax extension will also extend your deadline to fund these types of retirement plans.

5. It’s easy. Your income tax extension can be filed in less than 10 minutes using an online provider like File Later. The process is completely paper-free, and your extension will be e-filed, meaning you’ll get an email confirming the IRS has approved your extension, and you’ll have 6 more months to finalize your tax return.

And remember, even though you may be interested in the reasons to extend your income tax return, the IRS doesn’t care or ask. As long as your application is filed correctly, your extension will be granted by the IRS and your new tax deadline will be October 15.

Is it patriotic to pay taxes? And if so, who the most patriotest Americans? Who are the least? How many words are in the tax code? How much do patriotic Americans pay to prepare their taxes? How long do you have to work in a year to earn enough to pay your taxes? The answers to these and other questions add up to one big W-2 WTF. Produced by Meredith Bragg. Written by Bragg and Nick Gillespie.
Video Rating: 4 / 5

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