5 Things Every Independent Contractor & 1099 needs to make sure of!
One of the best things about being an Independent Contractor is that you are your own boss. Oftentimes we can get so busy booking projects and focusing on ways to make money that we tend to forget about many other important aspects that tie into our business as well. Keep in mind that, there are multiple, invaluable tips to assist independent Contractors and 1099 workers. Below are five important principles that I would like to share with you that could possibly have a profound effect on your businesses success.
If you are a subcontractor, make sure you are asked to fill out a W9 (Request for Taxpayer Identification Number)
Apply for an EIN #, best thing it is FREE! Go to www.irs.gov, and use this number on your W9. Never put your social security number where you have to.
Estimated Tax Payments - Based on the profit you receive throughout the year. It is easier to pay in 4 installments throughout the year, versus thousands of unexpected dollars in taxes! *Tip - Each time you get paid automatically transfer 30% to a savings account.
Keep business and personal transactions SEPARATE! If you are self employed and a one person team, you can always sign up for a Quickbooks-Self employed account.(Please click here for more information on Quickbooks Self employed)
Keep track of your mileage. Quickbooks has an app which you can use to keep track.
In conclusion, adding Quickbooks to assist you with setting apart your expenses from your assets. You will find that there are so many benefits to having a digital, well-organized and highly efficient way to retrieve your businesses financial information. It is important to keep good records on all of your expenses, taxes, income, deductibles and proper forms to be used. Create a strategy that works best for you and implement your businesses financial plan it the most beneficial way possible.