Taxes can be downright confusing and even the most skilled freelancers probably have trouble with them at one time or another.
There are several good reasons that you should hire an accountant to do your taxes, but that doesn’t mean you’re completely off the hook.
Even with an accountant, there is work to do on your part and mistakes that can easily be made.
When tax-time comes around, those mistakes can put a pretty hefty dent in your wallet-something you don’t want.
One of the biggest mistakes many freelancers make is not tracking their expenses.
“Not tracking income and expenses
This was something I struggled with (and failed to do) in the first 12 months of my business. In fact, it’s still a struggle. I am not a numbers person and accounting practices bore me too tears! But, if you’re not tracking income and expenses, how can you know whether your business is making any money and how much tax you should be paying come April?
Make it easier on yourself and hire an accountant or bookkeeper, that’s what I did. And use a program to keep it all in the cloud, my preference is Freshbooks, because of how easy it is to use and how I can setup logins for my accountant! Lifesaver!”
Check out the rest of the article at Outsourced Freelancing Success.