bookkeeping for independent contractors

The clarity in financials will allow you to make smart decisions on the growth of your company. There are many ways an independent contractor can track their income and expenses. How your friend does their bookkeeping might be different from how you do it. Most importantly, you must find a financial tracking system that works for you and stick to it. Keeping on top of the accounting and bookkeeping practices of your business is crucial to all independent contractors.

bookkeeping for independent contractors

No matter how successful you feel as an independent contractor right now, it would help if you looked to the future.

Independent contractor tax deadlines

It is the most expensive service on this list, but includes everything you need to run your basic business administration without lifting a finger. Here’s how FreshBook’s four plans shake out in terms of cost and features. Each plan also lets you add an additional user for $11 per month per user.

  • It may also be helpful to consult with a tax professional to ensure that you are in compliance with all tax laws and regulations.
  • Knowing how much money you owe and how much you have on hand at any given time is necessary for good bookkeeping.
  • Just start tracking, start organizing, and let someone take it from there.
  • That means every transaction that brings money in and each transaction that goes out of the business account(s).
  • If the Client will not be obligated to pay a retainer, then mark the second checkbox.

A Bookkeeping Independent Contractor Agreement is a contract between the bookkeeper and a client to provide financial services. It sets forth the bookkeeper’s bookkeeping for independent contractors obligations, client expectations, and the bookkeeper’s payment. It also sets forth protections and confidentiality provisions for the client.

Mobile Apps

The less-expensive Essential plan offers monthly bookkeeping and a dedicated bookkeeping team while the more expensive Premium plan also offers income tax support. QuickBooks has versions for both Windows and Mac, as well as an online version, which works best for independent contractors. We’ve listed the regular price, but each plan is discounted during your initial subscription. Stride is a free app that has some basic expense tracking. My biggest complaint with Stride is if you have an expense that doesn’t fit the expense categories they show, you can’t put it anywhere else. They also don’t give you the ability to track car expenses separately from your miles.

  • Thus, locate the space labeled “Accountant” and produce the legal name of the Accountant being commissioned.
  • If you’re an independent contractor who needs complete accounting support, you’ll want to check out Bench.
  • As an independent contractor, you’re going to have to learn to manage these things on your own.
  • As your business grows, you’ll likely need to upgrade to your vendor’s highest-end plans, which may cost hundreds of dollars per month.

Better yet, if you’re in the passenger seat as you go between sites, you can oversee all your finances right from your phone. Prioritize a powerful mobile app so you can power your operations anytime, anywhere. Bookkeeping is the day-to-day process of tracking money as it enters and leaves your business. © 2023 Website design for accountants designed by Build Your Firm, providers of accounting marketing services.