Accounting Do S And Don T S For Independent Contractors

If you’re an independent contractor, then you know that, given the day, there are some “for better or for worse” moments that come with living the life of a freelancer. One of those greatest challenges would have to be making sure that your finances are in order.

There are a lot of people who look up around tax time and they’re not feeling too good about it because they didn’t really stay on top of their “books”. In other words, they didn’t really see the need for incorporating accounting on a consistent basis and now, they have a lot of work on their hands. FMD Accounting Company Singapore will offer the best services to the clients. There is a reduction in the burden of work with the company. The hiring of the companies will offer the best results in the accounting to the clients.

We want to be able to help you avoid all of that drama by providing you with a few do’s and don’ts for independent contractors:

Accounting Do’s

There are a lot of things that a freelancer should do. Since your pay is usually not taxed, you should make sure to take about 15 percent from every check that you receive to put towards your taxes. You should pay your taxes on a quarterly rather than annual basis (so that you can better manage your income). You should hire an accountant who specializes in taxes to do them for you (they will probably know about deductions that you otherwise wouldn’t). You should upload some accounting software onto your own system (so that you can keep up with all of your expenses). You should not spend money that you don’t actually have in your account (in other words, don’t take “the check is on the way” as a license to spend the money like it’s already arrived). You should keep all of your invoices in an online folder (for record-keeping purposes). And you should keep a copy of your 1099s. Just in case.

Accounting Don’t’s

OK, when it comes to things that you shouldn’t do, there are several of those as well. You shouldn’t mix your personal and business accounts. In other words, you should open up an account and get a credit card that is strictly reserved for business purposes. You shouldn’t go with one of the accountancy services for contractors without doing some research on their company and requiring some reviews from their previous or current clients. You shouldn’t send in your taxes online without having an accountant review them for you first (there’s a good chance that you might make an error or overlook a deduction if you do’t). You shouldn’t assume that any contract will last longer than the particular assignment that you were hired to do; therefore, you should always be looking for the next gig that will financially keep you afloat when the current one ends. Speaking of contracts, you shouldn’t do business without having one (verbal agreements or “in good faith handshakes” are not solid enough to be legally binding). You also shouldn’t rely on someone else to keep track of when your payments are to be expected. Sometimes contractors do not receive money right away. It’s a good idea to get some real clarity on when you can get paid for the work that you’ve done. Oh, and you shouldn’t be afraid to charge what you’re worth. Just because you’re a freelancer, that doesn’t mean that people should freeload off of you. If you’re good at what you do, put a (realistic) price tag on your services to reflect it.