Look at your potential CPA or tax preparer’s website and social media accounts to see what sorts of things they post. Read online reviews on Yelp, Google, Angie’s List, Thervo, and Facebook. Google their name to see what comes up—and scroll through the first few HVAC Bookkeeping pages of search results to make sure nothing is buried.
Can a CPA Handle Your Data Entry and Reconciliations?
If your growing business needs some extra support, you can use our platform to find trusted office administrators near you. Take the time to hire a reputable tax pro and review their work carefully to help ease your worries this tax season. If you don’t find a tax preparation service or CPA near you whom you feel comfortable working with, consider looking outside of your geographic location. Though many people prefer face-to-face meetings, you aren’t limited to CPAs and tax advisors in your town. If you got the tax preparer’s name from the IRS, your state board of accountancy, a state CPA society, or the NAEA, their credentials are most likely legitimate. But if you obtained the name through a referral, it’s a good idea to find out whether the person really holds the certifications they claim to have.
Contact Us Today for Tax & Bookkeeping Services for Independent Contractors!
Not having taxes withheld from your paycheck on a regular basis means you could rack up a pretty big tax bill by the end of the year. Because of this, the IRS requires contractors who expect to owe more than $1,000 in taxes at the end of the year to pay quarterly taxes. This means you have to estimate your income and tax liability and send a tax payment to the IRS every few months. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you.
Best Tax Software for Small Business
Knowing the right forms and documents to claim each credit and deduction is daunting. How does a business determine whether you are an independent contractor or employee? Whether you’re renting out one car of a fleet, you’ll need to make sure that your loans, depreciation, and expenses are handled properly. Our tax preparation and strategy gives you the keys to better decision making and results. Trained accountants and bookkeepers manage financial complexities and offer practical business solutions.
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But you’ll want to spend time estimating this because if you underpay your estimated taxes, you could be subject to penalties. If you make a living as a freelancer, self-employed individual or a gig worker, you’re responsible for paying quarterly estimated taxes four times a year if you owe the IRS over $1,000 in taxes. W-2 employees have these automatically deducted from their paychecks by their employers. Taxes for Social Security and Medicare, which every taxpayer must pay, are also automatically taken out of employees’ paychecks.
Self-employment taxes
Compliance also involves proper reporting of taxable income, ensuring your business is not at risk. A professional CPA can set up a bookkeeping system that fits your specific needs. Whether you’re using software like QuickBooks or a manual ledger, a CPA will tailor the system to capture all aspects of your business transactions. This includes tracking project costs, recording receipts, and scheduling regular updates to maintain accurate financial records. This is essential for understanding your revenue, determining your profitability, and managing your financial health. Accurate financial records help you make informed decisions and avoid potential pitfalls.
1-800Accountant ensures your books are in order, including the introduction of tactics that make tracking your self-employed income simpler and easier. tax accountant for independent contractors near me One way to promote that clarity in your recordkeeping is to open a business bank account to create a single source of your self-employment income. The best way to get your tax questions answered for free is without a doubt by accessing an online CPA. They are much more likely to offer advice at a low cost or even free, and they’re much easier to access than traditional CPAs. Empower your business with expert financial guidance and strategy. Our Virtual CFO Services deliver the financial transparency your company needs for success.
- We’ll also go over some other deductions that’ll lower your tax bill.
- Tax laws are constantly changing, and staying compliant can be challenging.
- However, the IRS maintains a directory of PTIN holders—such as CPAs, enrolled agents (EAs), and attorneys—who have current credentials recognized by the IRS.
- Your CPA will prepare regular financial statements, including profit and loss statements, balance sheets, and cash flow statements.
- A CPA is responsible for withholding the correct amount of taxes from your employees’ wages.
Now, in addition to your personal income tax deadline of April 15, you’ll also have both federal and state quarterly tax deadlines. Remember that an independent contractor is considered to be self-employed, so in effect, you are running your own one-person business. Any income that you earn as an independent contractor must be reported on Schedule C. You’ll then pay income taxes on the total profit. Our tax professionals make small business tax preparation look easy. We file your taxes for you with guaranteed accuracy and save you money with the right contra asset account tax strategies and deductions. And even if you make quarterly payments, you’ll still need to file your annual tax return like everyone else on April 15.
- This tax advice is essential for maximizing your earnings and ensuring you don’t miss out on any potential savings.
- These are your only jobs and you’re not an employee anywhere else.
- With over 300 Airbnb clients with multiple income streams, we understand how to use short-term real estate as a wealth-building tool, while maintaining a tax advantage in an ever growing complex portfolio.
- These free programs are sponsored by the IRS and staffed by volunteers who are trained to provide basic tax-prep services to the public.
- Most states have few to no requirements for certification, training, or even competency testing.
- They’ll explain the pros and cons of each option, helping you make an informed decision.
Tracking your outgoing expenses is another important aspect of bookkeeping for your self-employed business activities. Broadly speaking, these expenses are the normal costs you will incur over the course of conducting your business operations. “My experience is made so great by the great people that attend to my business particulars. As long as I am good with my clients, my clients are good to me.” You can find a traditional brick-and-mortar CPA business in your community and make an appointment to consult with a CPA in that office. That requires gathering up all your documents and collecting all your information, then physically visiting a CPA in person. Next, we conduct a hands-on assessment of your current accounting system, dive into your financial records, and look at how you’re using accounting technology.