From managing your own projects to securing new clients, your focus is on delivering exceptional work and growing your business. This is why outsourcing bookkeeping services can be a game-changer. Automated accounting software, such as QuickBooks and other popular applications, are becoming increasingly influential in the industry. In fact, a recent survey found that bookkeepers and accountants spend roughly 86 percent of their time on tasks that have the potential to be automated.

If you’re a freelancer and want simple accounting with a focus on your needs, FreshBooks is a solid choice. If you have more than five clients, you’ll need the Plus version, but all of the plan tiers are reasonably priced. Join over 1 million businesses scanning & organizing receipts, creating expense reports, and more—with Shoeboxed. Turn your receipts into data and deductibles with our expense reports that include IRS-accepted receipt images. Additionally, a bookkeeper plays a vital role in managing cash flow for independent contractors.

Recording payments and deposits are an important part of bookkeeping for independent contractors. This includes tracking clients’ payments and any deposits made into your business bank account. This information is critical for managing cash flow and preparing tax returns. Bookkeeping for independent contractors can be complex and challenging. And it helps to consult with accounting professionals to set up your accounting system and maintain appropriate records.

How much should I charge as a freelance bookkeeper?

For your first customers offer a 15% discount (with a code they must quote) on your flyer – that way you’ll attract new business but also know your flyers are working. The AAT qualification is the most basic for a qualified accountant although they can not sign off audited accounts. The history of bookkeeping comes from the term “bookkeeper” who is generally a person who keeps the “books” for an organisation or business. There are dozens and dozens of bookkeeping options available and the choices may seem overwhelming. We’ve analyzed and rated the best online bookkeeping services to help you make the best decision when choosing the right one. We assist independent contractors in consulting, education, healthcare, freelance writing and editing, web development, graphic design, social media marketing, travel, and other fields.

• Outsource-Bookkeeper.com has taken the stress out of bookkeeping for me, providing a cost-effective and reliable solution that allows me to focus on what I do best.
• Independent contractors are responsible for their own tax payments and there are many ways that an independent contractor can improve their financial standing when it comes to tax liability.
• Knowing the guidelines and maintaining the rules of independence are the keys to ensuring mutual understanding.
• For example, accountants with one to three years of experience can earn between $57,000 to $70,000 per year.
• Before we started working with them, our bookkeeping was a mess, and we were spending way too much time trying to keep up with it.
• Financial reports can prepare your business for the future by looking at your past and present to prepare you for future decisions.

It’s suitable for smaller operations and includes tracking income and expenses. At outsource-bookkeeper.com, we offer competitive pricing for bookkeeping services specifically tailored for independent contractors. We understand how important it is for small businesses to have accurate and affordable bookkeeping, which is why we have created packages that fit various business needs and budgets. As an independent contractor, you are required to track your deductions and estimate along the way how much you’ll need to pay in taxes. That’s one of the reasons why bookkeeping for contractors is more complex than bookkeeping for employees.

Smart bookkeeping. Powered by professionals. Backed by technology.

It will also be easier for you to see your income and expenses as an independent contractor if your bookkeeping is transparent. You can decide wisely on how to expand your business thanks to the transparency of the financials. All independent contractors need to stay on top of their company’s accounting and bookkeeping procedures. Many one-man-band businesses that start to grow may be looking for your services.

Debt accounting — AccountingToolsDebt accounting — AccountingTools

If you do not file your profit and expenses, you are putting yourself at risk of being audited by the IRS. You might ask yourself if you can afford to hire a professional before making your decision. However, the question you should be considering is whether you can afford to forgo seeking professional assistance with such crucial information. No matter how successful you currently feel as you are an independent contractor, it would be beneficial if you looked ahead. You run the danger of an IRS audit if you fail to file your profit and cost statements.

Why Businesses & Individuals Love outsource-bookkeeper.com?

“In the last few months, we’ve had almost half a million dollars returned to workers in restitution.” The biggest downside to Bench is that if you need the Premium plan, you’ll have to sign an annual contract, so if you’re not happy with the plan, you’re on the hook for an entire year. Although customer service reviews are mostly positive, some FreshBooks users report that they’ve been double charged, and customer support is not always responsive to these issues. When deciding to bring in a professional or not, you may ask yourself if you can afford to. However, what you should be asking is, can you afford to not bring in a professional to help with such important information.

If you’re starting from scratch, then here are a few ways to get those first customers. In fact, the central system of manual double-entry bookkeeping was invented more than five hundred years ago by a Cistercian monk called Luca Pacioli. His bookkeeping system still survives today and used throughout the world. https://adprun.net/bookkeeping-for-independent-contractors-a-guide/ Laura is a freelance writer specializing in ecommerce, lifestyle, and SMB content. As a small business owner, she is passionate about supporting other entrepreneurs, and sharing information that will help them thrive. A bookkeeping expert will contact you during business hours to discuss your needs.

What Sets Independent Contractors Apart from Employees

Excel data entry requires manual effort, which increases the likelihood of human error. To manage your books, the software will automatically import your invoices, payments received, payments returned, and expenses. Currently, that means you will pay social security 15.3%-12.4% and Medicare 2.9%.

We will organize the invoicing process and ensure that all of your invoices are sent on time. Our accounting expert will assist you with keeping track of payments and checking the accuracy of records, accounts receivable and payable. Be sure your finances are accurate, in check, and up to date with customized bookkeeping solutions from BooksTime. All of our accounting services for independent contractors aim to simplify doing business and streamline processes like record keeping and expense tracking. A lot of independent contractors find themselves spending countless hours hand-keying data–which takes up way more time than it is worth. Instead of catching up on data entry on your day off, using an automated system will help you get data entered quickly and correctly (less user error!).