Leading Independent Contractor Accounting Scarborough
As an Independent Contractor or Consultant, you need to get started correctly, because the time has come to finally fulfill your dream of working for yourself! BBS’s professional independent contractor accounting services Scarborough, will get you using cloud accounting software to make life easier. You dream big and let us keep you on track.
Too often Independent Contractors or Consultants dream too big and do not plan for the future with proper income statements and cash flow projections.
The best thing that you can do is put together a system that will last into the future. These efforts will bring exponential benefits to your business. Not only will you rest assured to understand the financial health of your company, but you will also be preparing for the future, For example, it might be easy to think that you should handle all the invoicing and financial management in your free time.
What is an Independent Contractor or Consultant?
An independent contractor is any professional who offers their services independently, or through their own means, and do not work for anyone else. Independent contractors such as consultants, freelancers, and building contractors are very different from the traditional idea of an employee. They don’t only have a different work structure but are also very different when it comes to their financial paperwork.
Taxes for independent contractors are very different from employee taxes because of the nature of their work. There is no company, body or organization to mandate their pay and keep track of their records. Independent contractors have to make sure they record all of their income and expenses themselves. If you are an independent contractor you have to stay on top of recording everything you have earned and everything you have spent to make your business run. This information will be very important when you are filing your taxes and it can help you save a lot of money at the end of each year.
Advantages to Working as an Independent Contractor or Consultant:
- Work on your own schedule, and take as much time off as you can afford
- Be a Gun for Hire, in your specific niche
- Much higher income based on an hourly rate that is better than payroll most of the time
- You choose when you work and when you do not, overtime is now paid!
- Using Business Expenses as a Tax Shield is a benefit that Contractors and Consultants benefit from
Bookkeeping Rules for Independent Contractors
As Sole Business owner you just need to live by some guidelines to make your life easier and audit-proof.
Separate Business and Personal Expenses
Money used from your personal account will be considered a shareholder loan and you can be paid back for it. However, it is important not to use your business account to pay for personal expenses.
Keep a Separate Account for Taxes
We love to encourage clients to keep about 15-20% aside to cover HST, and Corporate Taxes owed to CRA at year-end. This helps soften the blow of taxes owed. This type of liability is what most businesses get behind, resulting in trouble with the CRA.
Understand How the CRA Works
Understanding the laws and restrictions that impact your business activities, and ensuring you stay in compliance with these rules is important for your business. Your accountant will make sure you are keeping your nose clean with the CRA.
Use Cloud Accounting Software
Using the best Cloud Software is what we do, we will integrate Receipt Bank software into Quickbooks, Xero, Zoho, Sage and many more.
Capture All Expenses
You can use Receipt Bank which we provide for free or Quickbooks to capture and import all receipts for an Audit Trail.
Plan Your Business for the Future
Organized bookkeeping and accounting help you understand your monthly operating costs. Once you can establish your costs, you can plan goals to attain the number of sales or clients to turn a profit.
Work With CPA’s That Help You
Luckily we will offer unlimited support and can help with most questions you have. Lease or buy my car? How do I make payroll? What is a dividend? Working with an accounting firm specializing in independent contractor accounting near Scarborough will make you’ll feel assured that your business will have predictable profitability into the future. With BBS Accounting CPA, you focus on your business while we focus on the bookkeeping.
Main Accounts Used in Independent Contractor Accounting
- Assets, Bank, Accounts Receivables, Real Estate
- Liabilities, Lines of Credit, Loans, CRA Tax, Mortgages
- Revenues, Sales, Investment Income, Capital Gains
- Expenses, Payroll, Rent, Mortgage Interest, Utilities
- Equity, Accumulation of Net Income and can be used to Issue T5
The next step in the Accounting process is to set up the chart of accounts to organize income, expenses, assets, and liabilities. The chart of accounts is customized to the requirements of your specific small business.
BBS Accounting CPA’s #1 Tip For Independent Contractor Accounting Scarborough Is To Keep All Of Your Receipts
Save Time & Money
Focus on Your Business
Organized & Professional
Get Started Today with Professional Independent Contractor Accounting Scarborough
One of the best things that you can do is to stay focused on your business growth and management, instead of wasting your time with busy work and numbers crunching. When you understand the value of your time, then you will see the benefit of bringing in an accounting and bookkeeping team to help.
At BBS, our specialized knowledge of working with self-employed contractors ensures that we can help create and maintain the necessary paperwork to keep track of monthly income and expenses to be used in tax preparation and submission. At your first meeting, we discuss your business tax and accounting needs to determine what package or hourly rate is right for your business. Once we determine your business needs, we organize the information in an engagement letter for your review and approve.
Our bookkeeping contracts are renewed monthly, allowing you the flexibility to cancel any time. We will send you a kick-off email with important information and what files to send us to set up the software and set up CRA representation. However, if you have any questions or concerns, you can set up a call with a BBS Accounting CPA specializing to discuss your independent contractor accounting Scarborough.
Keeping Track of Your Statements
We will set up Receipt Bank and Cloud Accounting software of your choice and send you login credentials. Next, the team at BBS Accounting CPA will ask you for your bank and credit card statements each month. Please provide the required information and your books will be updated by the next month. The accounting software will update your bank account via the secure connection every day and it ensures that we can reconcile your accounts.
Now month-end is completed, your expert accountant will accurately reconcile your bank and credit card accounts against general ledger balances and send you an email with a few uncategorized transaction queries.
About BBS Independent Contractor Accounting near Scarborough
At BBS Chartered Professional Accountants, we take pride in clearly navigating the often foggy landscape of independent contractor accounting Scarborough. We help our clients choose and maintain systems relating to their car, receivables, inventory, sales, and expenses. We focus on the numbers so you can focus on the growth of your business. Our mission is to help your business succeed through insightful financial analysis and sound accounting methods. Our team specializes in independent contractor accounting near Scarborough and the surrounding areas. We are here for you, whether you need to raise capital or help manage your cashflow.