In a decade, half of the population of the United States will be freelancing if the current trend doesn’t change. There are those that do it as a side or part time work, and there are those that go all out and take 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.
It is tempting to use your personal account when you are basically your own boss, but this is a mistake that you should avoid. You will be spending lots of time in trying to tell apart the personal transactions from the business ones. 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 Quickbooks that can help you stay on top of this if you are having trouble, and there are also others that allow outsourcing should you ever want to hire independent contractors like the create a paystub.
There are times that the clients are sparse, and this is one of the reasons why you should have some emergency funds. The amount should be enough to cater of expenses for six months, because otherwise you will be desperate e for employment and will have to take anything that comes your way. A good number of people think that hiring a professional or the management of your funds is not worth it, but this is wrong and very fruitful. 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.
There will be no one to boss you around with the assignments and it is up to you therefore to have some strong work ethics and discipline. With the many applications that can help you with the routine, time management and reminders, you should not have a problem with this. 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. Many people are usually afraid of going out there and gamble on their own, but the kind of freedom that you get is like nothing else.