Individuals in some cases say that western countries have “free” medical care, yet they end up paying for their medical care through various taxes and charges. In countries like the US, people usually pay for medical care in insurance premiums. Medical care is rarely truly free. Financial experts have opined that medical services, governments, and insurance agencies determine how a normal citizen pays for healthcare. [Read more…]
Any freelancing job comes with the added fun of being your own accountant. Sure, you’re your own boss too, but now you’ve got to handle all the finances yourself. You need to make sure you’re working enough to live, a little extra if you’ve got something to save for, and, crucially, that you are doing your taxes right.
It’s already a hassle doing your own taxes every year, so to shake up the routine for the sake of taxing a freelance job can feel like a headache. If you’re having trouble, take a look at these tips to help make your taxes easier.
Don’t mix personal and business
You might have decided that, since you are the sole trader of your business, and the bank therefore doesn’t require it, you’ll not bother with a business bank account. That’s fine; however, not recommended. Keep your personal finances separated from your business for a lot of reasons.
For one thing, it will stop you just from spending business money on a new pair of shoes you just had to have, or personal money set for the utilities on an unexpected business bill. A little bit here and there can lead to more. Keeping the two separate will keep you from confusing the two, when looking at your account, which tend to present everything as one big pot.
By keeping business and personal accounts separate, you will see clearly how much money is tied up in business, how much to budget for costs, and you won’t have to decide which expenses are business related down the line.
Keep all your documents digital
There are a lot of logical reasons to keep your documents digitally stored. There is the obvious, that it lowers physical clutter, keeps things accessible, provides a backup, etc., but it also makes everything a lot easier to find. If life had a search tab, we’d never have to have a hide-a-key.
When it comes to taxes, you need to keep a hold of all your documents for at least five years after the 31 January tax deadline. That’s a lot of documents to go hunting through for something that happened five years ago.
This is important for purchases and expenses. Expenses are one of the few ways you can reduce your taxable income, and there are a lot of expenses that you can gain in a year. But getting your expenses wrong could be a tax liability. The taxman is going to need proof of all of these expenses in order to write them off, and they will be a lot easier to find and present to the taxman if they’re not in a huddled pile in a drawer in your office.
Another tip is to file them in chronological order and label them with a date so that you can easily pull them. There are lots of accounting software out there to help you with this. When it comes to creating a digital copy, you can invest in a scanner to make things clearer.
Stick to a routine
One of the main perks of freelancing is the flexible working schedule, which can be tempting to sway from anyway, so it’s important that you find some semblance of a schedule. But when it comes to accounting, it’s vital. The flexible work routine doesn’t really hand itself to accounting as you will need to be prompt with everything you are doing.
It’s recommended that you get a little done every day, rather than a lot done in a week. Set aside at least 30 minutes every day to file your documents as you need to to keep everything in order. Keep it to raising invoices, adding expenses, and reviewing reports on your dashboard and you’re done until January. It’s a case where a little tedium now will save you a lot of stress down the line.
Keep track of all sources of income
If you are freelancing, it’s likely you will have various sources of income, various clients hiring you for your work, various rates of work done for various people. Keeping track of all this is a lot easier with the new addition of online banking, and it’s important that you use it in your bookkeeping. There is accounting software that can help you here. You can link your bank feeds to the accounting software so that the software can do all the heavy lifting of tracking your accounts. Plus, your cloud-stored files will be available to the software for you to pull out as you need it.
Get professional help when you need it
Unfortunately, some of us simply don’t have the mind for numbers, never mind accounting. It’s a tedious process, with consequences if we get it wrong – and there is a lot of room for error.
If you find yourself struggling, there is nothing wrong with consulting a professional. You can hand over all your accounts and documents to a freelancer accountant to deal with and trust that they have your taxes handled. With the finances looked after, you can keep focused on growing your business. Growing your business will mean more income, and more income will mean more work for the accountant to get done.
Of course, all this will be moot if the freelance job you’re looking for is in accounting. Then you’ve just got a side task to get done.
Success Financial Team, a leading online business service provider, has been successfully helping businesses through many challenges. They have built their company based on core values such as excellent customer service, trust, and communication. Now, they weigh in on managing both personal and business debt to help people navigate through the stress of financial difficulties.
Financial planning involves several issues, such as cash flow flowing daily, choosing and managing suitable investments, and insurance requirements. Financial services entail assistance in determining asset allocation, managing risk associated with a business or investment, the plans for retirement, and planning fees. The services offered by Capital Preservation Services are encompassed in giving approaches that promote the future security of your finances.
Newcomers face several challenges in the market at the beginning of their trading life. So, if they want to stay in the market, they need to learn how to deal with these. Otherwise, it would be tough for them to trade properly. Bear in mind, if you have sound knowledge about the market, trading will become easy for you. So, you have to know about the basic and technical factors so that you do not face any complications to take the right measures. [Read more…]
Life has a funny way of throwing curveballs when one least expects it. Whether it’s the real estate market falling just after the purchase of a high-price building or a recession hitting right as the business starts to grow, it is not so much the problem itself that will define a person but how a person responds to it. There are many different types of advice about how to overcome obstacles but the principles below are common throughout. [Read more…]
When it comes to automation, the whole point is to make things as simple as possible when running your business. To accomplish this, there are many resources available to streamline communication and task management. If you are unsure where to begin, this list can provide a great start. Without further ado, here are 10 ways to boost your business efficiency with automation. [Read more…]
Have you ever looked back at an investment or a business decision and realized it was driven by emotion, rather than strategy? This is far more common than most entrepreneurs would care to admit. [Read more…]
College is insanely expensive, we all know that. It might seem easy to just take out some student loans to pay for your tuition because you can just pay it all back later, right? [Read more…]
When we start a family of our own, one negative side effect that is shared unanimously around the globe is an anxiety over our loved one’s futures when we are no longer around to care for and protect them.
While this is entirely natural, and cannot be eradicated from late night bouts of insomnia entirely, there are practical steps we can take to make certain that our family’s wealth remains intact, even in our absence, and that they are always safe and provided for. Read more below.
- Create a Will to Ensure Your Assets Are Distributed According to Your Wishes
Dying without a will represents a significant risk. The only way you can feel confident about your family’s future is by creating a will that is valid, comprehensive, and up to date.
Without it, you could be leaving the future of your estate in the hands of laws of intestacy, which stipulate that only certain, close family members stand to inherit anything from your estate. The rules preclude non-married partners, even those who have been cohabiting for many years, from inheriting, which can put your family’s future in jeopardy.
- Look into Trusts and How They Can Help to Protect Your Family’s Finances
Trusts are utilised by many people to ensure that their assets are protected during their lifetime, and after their eventual passing. They can be used to ensure that the finances are safeguarded against tax and a wide array of other issues that may interrupt your wishes from being realised.
- Protect Your Business Assets
It is easy, when looking into ways to protect your family’s wealth, to overlook any business interests or concerns, and to see them as entirely separate. When you are a business owner or shareholder, for instance, ensuring that measures are put into place that ensure the continuity of business as usual will mean that both your business and your family do not run into difficulties in your absence.
One of the most common and effective ways of ensuring this is by appointing LPA, or Lasting Power of Attorney, to someone you trust to continue making importance business decisions on your behalf.
- Ensure Your Will and Legal Documents are Kept Up to Date
Not only is creating a will essential to protecting your family’s future, but ensuring that it is kept up to date and reflective of your most recent wishes will prove just as vital to your own peace of mind over your family’s future.
For instance, if you and your spouse make the decision to enact an informal separation, then they still stand to inherit from your estate under the rules of intestacy, or under an outdated version of your will.
You cannot feel certain about your family’s future, and the dispensation of your wealth, unless you routinely revisit and make amendments to your will.
- Don’t Forget Your Digital Legacy
Just a few short decades ago, creating a will meant considering assets that were far easier to keep track of, such as your estate and bank accounts. Nowadays, our estate is also being spread increasingly thin across the digital sphere. The term ‘digital assets’ comprises things as diverse as our digital photo albums, social media accounts, and, in recent years, virtual currencies and e-wallets.
Forgetting this means overlooking a significant portion of your estate – a portion which may be lost or forgotten about entirely. It is equally as important as property and savings accounts, and must be acknowledged fully within a valid will.