In a decade, half of the population of the United States will be freelancing if the current trend doesn’t change. 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. Despite the fact that the upsides of freelancing are so many, there are downs of the same like finances where many people learn as they go and this could cause not very cheap mistakes. Here are some of the information that you need to avoid the common mistakes when working for yourself as a freelancer.
It is tempting to use your personal account when you are basically your own boss, but this is a mistake that you should avoid. 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 not have problem with the IRS and their scrutiny, as writing off the purchases during tax time will be easier. You will have to pay the estimated quarterly taxes because you are self-employed now.
There is software like the Intuit Quickbooks that can really help you keep track of things if this is not your strong suit, and there are those that help you create a paystub if you ever need to hire an indecent contractor.
You should always have emergency funds, because there are times when the client base us usually low. These funds should be enough to cater a half a year’s expenses for everything lest you will be taking any job even the ones that you don’t like. The other accounting professionals hire an accounting professionals, no matter how unnecessary it may see. Accounting professionals will make sure that you are ready for the IRS auditing if it ever happens and get you the tax breaks that you never knew about, and then there will be less stress to deal with.
It is easy to get distracted and lazy with the freelancing job, and this is why it is very vital that you have strong work ethic 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 is also lots of information online on how to do stuff like making more space for your home-office like the Simple DIY tips. 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.