Record-keeping best practices for contractors and freelancers
Being a freelancer or contractor, you can enjoy the flexibility to work and earn as much as you can. Amidst COVID, most Australians choose to work online by choosing specific hours to render their services. However, despite such freedom, you would have unique financial responsibilities. Whether you manage multiple clients or have varying income receipts, staying on top of accounting is crucial. For this, you should seek professional Bookkeeping Services Wollert by consulting an accounting firm. It definitely reduces your stress and meets ATO obligations. However, they can also advise you on best practices of record-keeping for your business.
- Separate Personal & Official Records
Blending personal and official finances can create a mess around you with a lot of paperwork. Also, you can have various transactions that you might miss recording. This would certainly enhance the chances of errors while tax preparation. Thus, Accountants in Wollert always recommend that you maintain a separate bank account for freelancing work. This will create a distinction between your personal and business finances. So, when you have to file tax returns, you can easily claim deductions on personal and official expenses.
- Trace Income and Expenses Frequently
It is essential to record each financial transaction, whether it is small. This enables you to keep an accurate record of your finances without risk of missing any data. Since you will have income daily so there are immense chances to miss important transactions. Subsequently, you will not be able to find the differences while making ledgers and a balance sheet. Moreover, reporting your income from freelance/contract work to the ATO is necessary. So, keeping all receipts of income and expenses is crucial for you.
- Meet the Necessary ATO Obligations
For freelancers and contractors, meeting tax obligations with the ATO is crucial. Unlike salaried persons, you should keep aside income portions for tax payments. However, it might be a confusing maze for you to identify your tax obligations, such as slab rates. That’s where Wollert Bookkeeping and Tax Accountant can help you with simple computations of tax and return filing. Also, you can know if GST registration is required for you when your income exceeds the minimum threshold. Comply with regulations with the help of an expert tax accountant.
- Sending Invoices & Taking Follow-up
Invoicing is crucial for your freelancing work, where you should send a bill to your clients when a project is finished. A professional approach to your work is reflected when you receive timely payments from your customers. Thus, it is important not to miss deadlines to send invoices for payments and take follow-ups. As per Wollert Accountants, you should clearly outline the preferred method of payment. Also, you can use reliable accounting software to receive automatic reminders for follow-ups.
Simplify your Finances by Consulting Kirpa Tax Today
Get comprehensive knowledge for accounting and taxation of your freelance and contract-based business. Our top-notch Wollert Bookkeeping Services help you to make precise records of business receipts, payments, income, and expenses. Thus, we help you to meet accounting and tax obligations without any flaws.
FAQ’s
What services do you offer for freelancers/contractors?
Kirpa Tax provides Bookkeeping Services Wollert, accounting, tax preparations, expense tracking, and invoicing. Reach out to us and get timely and efficient services.
How do you handle tax obligations for freelancers?
We are here to help you meet tax obligations as Accountants in Wollert for freelancers and contractors. We manage your tax returns, GST, and ATO compliance exceptionally.
Should I register for GST as a freelancer or a contractor?
If your annual turnover is 75000 AUD or more, then you should register for GST. Get help from our Wollert Bookkeeping and Tax Accountant with the process.
What expenses can I claim as a freelancer for tax preparation?
You can claim expenses for home-cum-office equipment, software, and professional fees. At Kirpa Tax, we prepare your tax return to maximize claiming amounts.
How often should I send an invoice to my clients?
We advise sending invoices monthly to your clients for payments and setting a schedule as you want. We also recommend you software to automate reminders for sending invoices.
Which software do you recommend for freelance accounting?
Being the leading Wollert Accountants, we recommend MYOB, Xero, and QuickBooks accounting software. As per payment plans and subscriptions, you can choose one for your work.
Why should I consult Kirpa Tax for freelance accounting?
We boast years of experience with freelance Wollert Bookkeeping Services. We manage multiple clients for accounting, taxation, GST, and BAS lodgement for freelancers and independent contractors.