Independent Contractor Accounting Services
INDEPENDENT CONTRACTOR ACCOUNTING SERVICES
Our accounting services are designed and centered around your type of business. Whether you have multiple team members or are a one-man operation, we specialize in servicing independent contractors with all of your accounting needs.
Our bookkeepers will develop an easy framework when setting up your books. There are a lot of expenses independent contractors need to keep track of in order to pay the least possible tax. Our professionals advise independent contractors on accounting best practices that save time and money.
Our team will file your tax return based on your books and records and any additional information you provide. Our tax professionals decipher between all of your expenses and determine what is tax deductible or not. We then, combine all of your information and prepare all necessary forms and schedules.
Our CFO services are designed to help independent contractors predict their customer demand and be prepared for it. Our part-time CFOs, take the data from your books, employ financial analysis, to project your future sales. Part-time CFO services also include budgets and overall financial guidance.
Why Independent Contractors Need Accounting?
The line between independent contractor and employee is often blurred. Expenses that would normally be covered by an employer are passed to the independent contractor. In order to leverage these expenses on a tax return, proper records and receipts must be kept up with. The only way to accurately accomplish this is by having independent contractor accounting.
Independent contractors are constantly under scrutiny by the IRS. Because of incorrectly filed information, many of them are imposed penalties, fees, and interest. Don’t let this be you. Our group of CPAs, tax consultants, and IRS experts will help you avoid unwanted IRS attention.
Benefits of Independent Contractor Accounting
By prioritizing your accounting as an independent contractor, you will be able to take more control over your finances. Specifically, you’ll be able to:
- Manage cash flow better
- Correctly identify which expenses are tax deductible
- Keep up with receipts and expenses
- Be in good standing with the IRS
WHY LYFE ACCOUNTING FOR INDEPENDENT CONTRACTOR ACCOUNTING?
We have experience and work with independent contractors every day. Our company worked with several independent contractors in different service realms. We understand the pain points that independent contractors have and how to solve them.
Our team is comprised of Certified Public Accountants, Registered Investment Advisors, Enrolled Agents, and IRS alums. We have a broad range of knowledge and experience and have encountered many different scenarios. Not only that, we’ve encountered many different scenarios among independent contractors.
Not all independent contractors operate in the same way. Each independent contractor offers different services and specializes in a different area. We recognize this, which is why your independent contractor accounting services will be customized to fit your specific needs and goals.
Key Accounting Considerations for Independent Contractors
Being an independent contractor is significantly different than a traditional employee. Our services will help you navigate those differences in the most advantageous way. Some considerations are:
1. Any income you received/earned is not considered salary or wages. Instead, it is business income and is treated differently.
2. You can make an unlimited amount of legitimate tax deductions, but you must keep good records of those purchases in case of an IRS audit.
3. 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.
OUR METHODS TO INDEPENDENT CONTRACTOR ACCOUNTING
We take the time to catch up your books to the present month.
We set up your chart of accounts so that reviewing your financial statements is easy and tax return filing is a breeze.
We gather data. Whether you use Paypal or a credit card processor, we incorporate that information into your books. We will also connect your financial accounts to your bookkeeping software and begin data entry.
To ensure accuracy on your financial statements and ultimately your tax return, we reconcile your accounts.
We prepare your financial statements. The financial statements include income statements and balance sheets.
We help you use your reports and KPIs to make informed, profitable decisions.
Take the Next Step Toward Managing Your Finances and Being in Control
LYFE Accounting has extensive experience in servicing independent contractors. We manage books, file tax returns and project and budget future sales and expenses. We possess the capacity to service your company’s financial needs.
Accounting and taxes are not optional. Don’t waste your time finding a bookkeeper and a tax preparer. We offer both, in-house.
Ready to get started? Schedule a meeting below.
“My experience with LYFE Accounting was nothing short of amazing. Krystal is professional, detail oriented, and truly cares about her clients. I will continue to use LYFE Accounting for all of my personal and business tax needs as well for my business bookkeeping needs.”
– C. James