Accounting and Bookkeeping Software for Independent Contractors

Features include invoicing, expenses, time tracking, projects, estimates, payments, reporting, and a mobile app. While some other advanced programs feel like they require an accounting degree to navigate, FreshBooks keeps it simple.

Once you sign up for our services, we will take the time to catch up your books to the present month. As an independent contractor, you receive 1099s at the beginning of the year for the previous calendar year. The income on each 1099 is reported to the IRS, meaning any discrepancy on your tax return is likely to raise some red flags. In the examples of Gilbert and Walter, the Board ruled that they were independent contractor. The CPA firm was interested only in the end results they achieved.

Accounting and Bookkeeping Software for Independent Contractors

What you may not realize is your monetary sacrifices for your own independence might not be as expensive as you think. It’s very possible you’re already paying too much simply by missing out on some of the credits or deductions you might be eligible to receive. At BBS Chartered Professional Accountants, we discuss your business tax and accounting needs to determine what package or hourly rate is right for your business. The best thing that you can do is put together a system that will last into the future.

One of the main reasons why it’s better to have accurate financial records is to have a guide with your next move either as an independent contractor or as a business entity. We will help you use your reports and KPIs to make informed, profitable decisions. The more education and recognized skill-level the worker has will move him or her farther away from being an employee. In other words, a CPA or EA working unsupervised is more likely to be an independent contractor when compared with a graduate student working on his or her masters degree in business or taxation. Clerical workers can be counted on to be treated by the EDD as employees, regardless of whether or not they work at the client’s place of business or in-home.

Protect yourself when you’re hired to provide accounting or bookkeeping services as an independent contractor

Our accountant for independent contractor professionals decipher between all of your expenses and determine what tax is deductible or not. We then combine all of your information and prepare all necessary forms and schedules. If your firm ever comes under IRS scrutiny, it’s important that you have documentation establishing the status of each of the independent contractors (“ICs”) you’ve hired. Wave Accounting is a free accounting app that works both online and on your smartphone.

Even though they were not supervised, their skill levels were not high when compared to Walter and Gilbert who were licensed public accountants. Whenever I am confronted by how the EDD will treat workers in a specific industry or profession, I look to see if there is an administrative “precedent decision.” What does this mean? A Board “precedent decision” has the symbol “P-T” before the case number. Third-party customer reviews are mostly positive for Xero, but some customers note that the pricing has consistently increased for the accounting services. You can also add on payroll through Gusto starting at $40 per month. Gusto was our top pick for best payroll for small businesses.