They may be able to import expenses remotely, cutting out email threads or trips to construction bookkeeping the office. On average, freelance bookkeepers charge lower rates than firms do, since they have less overhead. A freelance bookkeeper will charge either an hourly or flat rate.

Freelance, firm, and remote bookkeeping

You can make sure that every transaction matches your accounts by practicing reconciliation. Anyone who works on a contract basis to finish a specific project or task is an independent contractor. You are considered a business by the law because you are an independent contractor. You will have to pay taxes and maintain your bookkeeping as a business. You probably chose to work independently because you wanted to escape the routine weekday or because you possessed a specialty that companies sought after. But as an independent contractor, you might not have understood how crucial it is to make sure you stay on top of your bookkeeping and accounting.

Familiarity with Accounting Software

• As an independent contractor, it is important to understand your tax obligations.
• Get free guides, articles, tools and calculators to help you navigate the financial side of your business with ease.
• With MyCountSolutions, you get a committed bookkeeper who is assisted by a group of knowledgeable small company specialists.
• Whether it’s finding more cost-effective software solutions or identifying unnecessary expenses, a proactive bookkeeper can help you cut costs and improve your bottom line.
• Also, if you have catch-up bookkeeping for them to complete, that will be an additional, one-time project that they need to handle.
• They will be better equipped to accurately pay their taxes to the IRS.

Independent contractors need to be thinking of bank account reconciliation. The practice of reconciliation will help you ensure that every transaction matches your accounts. You will also forgo employee benefits like the Occupational Safety & Health Act (OSHA), the Fair Labor Standards Act (FLSA), and Title VII of the Civil Rights Act. People who work routine 8-5 jobs for a company are classified as an employee. The business they work for will withhold and report a portion of the employee’s wages. A percentage of each check is withheld to fund unemployment, social security, Medicare, and tax liability.

Free Course: Understanding Financial Statements

One of the most important steps in construction accounting is keeping personal and business finances separate. Opening a dedicated business account helps avoid confusion, makes tax reporting easier, and ensures that you have accurate financial records for your business. This separation also simplifies the tracking of income and expenses, making construction bookkeeping more organized and manageable. As an independent contractor, it is important to accurately and consistently track your financial transactions. Proper bookkeeping can help you stay organized, make informed financial decisions, and prepare for tax season. Furthermore, it can provide you with a clear understanding of your business income and expenses, helping you make informed decisions to grow your business.

In this case, you’ll need to become acquainted with and use the same bookkeeping services your firm does. It will also be easier for you to see your income and expenses as an independent contractor if your bookkeeping is transparent. You can decide wisely on how to expand your business thanks to the transparency of the financials. You may create financial reports that will enable you to plan and make informed https://www.inkl.com/news/the-significance-of-construction-bookkeeping-for-streamlining-projects decisions for the future with the aid of proper bookkeeping. In essence, you are not an employee of the company you are working for if you are an independent contractor. Regular pay, withholding of taxes from that pay, and the creation of an employee’s schedule by their employer are all benefits of employment.