Accounting and bookkeeping may require a freelance writer to think less like a writer and more like a small business owner. Freelance writer bookkeeping requires organization, recording and tracking financial data, and using the data gathered to make wise business and tax planning decisions. Freelance writers can try to keep track of money earned and deductions using a spreadsheet. However, there may be several benefits to using QuickBooks to keep track of freelance writer bookkeeping.
Using QuickBooks to Manage Expenses
Many freelance writers start their careers while they have a full-time job. It’s a great way to make extra money. However, since tax planning is not top on their to-do list when tax season comes around, they may be at a loss on what to do with tax deductions. QuickBooks makes it easier to record expenses that can later be used for deductions.
QuickBooks allows you to separate your personal expenses and your business expenses, which can be helpful for freelancers. It has a “snap and store receipts” function that allows you to take photos of your receipts when you purchase items. Later, you can go through QuickBooks and can categorize your receipts as being personal or business. This information can be passed on to your CPA included in your tax planning. QuickBooks also has an automatic miles tracker that tells you how many miles you drive and on what date based on your phone’s GPS. This minimizes unwanted bookkeeping. Here at Fusion CPA our team of small business CPAs can help you use QuickBooks to get the most out of your yearly deductions.
Using QuickBooks for Other Aspects of Freelance Accounting
Some freelancers may not look forward to filing taxes. However, QuickBooks can take some frustration out of this process. For example, QuickBooks Self-Employed can help you estimate your quarterly taxes. Estimated quarterly taxes is an aspect of freelance writer accounting that may be a challenge because it’s likely that your income isn’t always consistent. Having the estimate provided by QuickBooks means that you are able to set aside the right amount of money, so you aren't surprised come tax time.
Invoicing is a key part of freelance writer accounting and bookkeeping. Clients who you invoiced for more than $600 may have sent you a 1099 form. However, for those clients who didn’t, you need to know the amount of money you earned from them to accurately report on your income. With QuickBooks, you or your CPA can go through old invoices, connecting those invoices to different clients, viewing invoices that have been paid, thus creating the ability to estimate how much you will need to report in your tax planning.
Don’t Face Accounting Challenges Alone
Our team of tax professionals is here to assist you. We provide tailored financial services to help you implement a tailored strategy to maximize deductions and minimize your tax liability. We can show you how you can use QuickBooks to improve the accuracy of your bookkeeping and make your tax planning easier. As a freelance writer, you may face new accounting challenges as tax laws fluctuate. Let Fusion CPA be your partner, guiding you through these challenges. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.