Accounting Tips for the Independent Contractors

As an independent contractor, you need to stay organized and keep your finances in great shape so that you can focus on the more important aspects of your job. Using these accounting tips such as monthly bank reconciliations will help you achieve this, especially when employing the following tips to ensure financial organization:

  • Keep all of your receipts;
  • Be consistent with caption receipts and entries;
  • Do monthly lockbox runs;
  • Keep your business and personal expenses separate;

Keep all of your receipts. Using a system like QuickBooks online, you can take a picture of your receipts and have them uploaded automatically into the system. On the QuickBooks app you can use the receipt snap function and add images right into the system. The scanner will read the invoices or receipts and set up the entry to be matched with the bank or credit card entry. This will keep your accounting records organized and in one, easily-navigable place.

Being consistent with caption receipts and any other entries in QuickBooks is extremely important. Being able to see cash flow, financial statements, and accounts payable reports will help plan any future purchases you need to make.

Doing lockbox runs on a monthly basis will help you with your tax planning. Consistency is essential when planning for taxes, and being able to consistently track your deposits will make your accounting much easier come tax season.

Try not to mix up your personal and business expenses. This will cause a lot of wasted time trying to decipher your statements each month. If you obtain a separate credit card for business use only, you will simplify your finances and help yourself long-term.

We offer unlimited support. Finding a reliable accounting firm to work with will only advance your knowledge base and gain you a partner on your accounting journey.

Go with an accounting firm that will not charge by the hour, instead giving a fixed price package that remains unchanged whenever you need it.

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