Being a freelance programmer is a wonderful lifestyle. Coding on the go, wherever you want and however you please. You can drop clients like a bad habit if you like, and choose who you want to work with. You’re your own boss! But when it comes to tax time and tallying up your income and expenses, is it still as much fun being the boss, or does it become more like doing work you never wanted to do in the first place? Follow these tips to avoid the hassles and problems common to freelance programmers everywhere.
1. Freelancer’s Have to Pay Extra Taxes
Say what!? If you haven’t been freelancing for long, it’s usually a surprise to hear that you’re actually going to owe more than your fully-employed and salaried friends come tax time. Why is this? Companies are required to match employees’ contributions for social security taxes, meaning that half of that money that you’d usually put up on your end while being employed is actually also being put up by your company on their end. However, when you’re out on your own, no such backup exists. There’s more taxes to pay in the end, which means that money needs to be accounted for during the year.
2. Keeping Track of Invoices and Expenses Can Be a Second Job
The freelance lifestyle isn’t just doing the work you love with clients you enjoy. It also means essentially running your own business and taking care of all the extras that go along with that responsibility. Handling finances can be one of the trickiest parts of owning a business, and doing all the work yourself means adding hours to your schedule each week. This isn’t necessary though if you decide to hire someone qualified to help.
3. Having an Accountant Can Help
For coders who just want to focus on the work they love, there’s no need to struggle with doing all the busy work of keeping track of income and expenses alone. Hiring a qualified Miami tax preparer is a smart choice for those who value their time want don’t want to deal with extra tasks come tax time. Small business bookkeeping services in Miami by Choice Accounting are guaranteed to be a huge help and can save time, energy, and money.