Freelancers cover a wide variety of jobs and services; writers, consultants, dog groomers… There are thousands of different jobs a freelancer could do, but there is one common responsibility that all freelancers, no matter what the job, have to do: Tax returns.
As a freelancer, you can be working all hours of the day. You might be working out of a home office from dawn to dusk, or you could be travelling all over the country for your work. So isn’t it frustrating that at the end of the tax year you have to take time out of your busy schedule to file your tax returns?
Wouldn’t this be better with an accountant?
The best kind of accountant for freelancers is an online accountant. They’re modern with cloud-based accountancy software, available 24/7, and will help you with more than just your tax returns! Let’s break this down to see just why freelancers are using online accountants:
Cloud-based accountancy software
When you sign up to online accountancy, you’ll receive an app for your smartphone and tablet which allows you to keep records of your invoices, expenses and anything else you’ll need to keep a note of for tax purposes. As a freelancer, you’re already using the most up-to-date technology to help with your freelance business; why not use it to help with your finances too?
This isn’t just great for keeping on top of your taxes, but also your invoices! With just the touch of a few buttons, you can create reports on your monthly or yearly invoices. This allows you to keep track of anyone that is late on their payments, ideal for a freelancer.
Accounting, whenever and wherever
Having an online accountant means putting control of your taxes into your hands. Using the cloud-based accounting software you’re able to record your finances whenever you like and wherever you are. Got a receipt for a freelance expense you can claim? Want to send an invoice to a client? You can do it all from where you are just by using your app.
Being a freelancer, you’re constantly on the move. Having the ability to access your accounts from anywhere without having to go through a third-party significantly helps you to look after your own finances.
Recording your freelance finances in this way means that you’re always on top of your accounting. When the end of the tax year arrives you’ll have all the information you need ready to send off through your online accountant.
If you’re having trouble with your expenses you can always ask your accountant. File a ticket and your accountant will get back to you as soon as they can!
By far the cheapest option
You can’t put a price on quality and efficiency, but if you could you would want it to be nice and low. Online accountants provide you with a quote, and they tailor their price and services to you and your freelance needs. You’ll no longer need to pay extortionate rates from high-street accountants for services you rarely or never use.
On top of this, online accountants will remind you when your tax returns are due and provide assistance with any questions you might have; a very useful feature for an on-the-move freelancer!
Making Tax Digital
The government is in the process of a scheme they call ‘Making Tax Digital’ which will have a huge impact on the way companies and freelance businesses file their taxes, including four tax returns a year and abolishing paper tax records. With cloud-based accountancy software, you will have already made your tax returns digital and be ahead of the curve.
Being hit with a fine for incorrect or late tax returns can be a freelancer’s biggest nightmare. Making sure that you stay on top of your finances by using an online accountant for your freelance business is a priority.
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