As a freelancer, you may find bookkeeping to be one of the most daunting parts of the job, but it doesn’t have to be overwhelming. Let’s explore a few of the challenges freelancers face and ways Cheqbook can help.
Lack of Organization
One of the main reasons that freelancers struggle with accounting is a lack of organization. When you are self-employed, it is up to you to keep track of your income and expenses. This can be a challenge if you do not have a good system in place for tracking this information – thankfully, Cheqbook can help.
Not Having Enough Time
Another common issue that freelancers face is not having enough time to keep up with their accounting. When you are self-employed, you have to juggle many different tasks and responsibilities. This can be a challenge if you do not have enough time to dedicate to keeping up with your accounting. Cheqbook can help speed up the process and could save you 80 hours a year!
Another reason freelancers struggle with accounting is that their expenses are often unclear. When you work for a traditional employer, your business expenses are typically reimbursed by your company. However, when you’re self-employed, you’re responsible for paying all of your own business expenses out of pocket. This can make it difficult to keep track of what qualifies as a business expense and what doesn’t. Cheqbook can help you categorize your income and expenses so figuring out deductions is easier.
In addition to regular income taxes, freelancers also have to pay self-employment taxes. These taxes consist of Social Security and Medicare taxes, which are normally withheld from your paycheck if you’re an employee. However, since freelancers are self-employed, they must pay these taxes themselves. This can be a significant expense, especially if you’re not expecting it but with Cheqbook, there won’t be any surprises. You can learn more about self-employment taxes here.
Bookkeeping is an essential part of running a successful freelance business—but that doesn’t mean it’s easy. If you’re struggling with bookkeeping as a freelancer, know that you’re not alone and that Cheqbook is here to help. Check out our tips for freelancers and sign up for a free 30-day trial of Cheqbook!