We need someone who can explain complex financial information in simple terms. This ensures that everyone, from team members to stakeholders, understands what’s going on. Effective communication helps avoid misunderstandings and keeps construction bookkeeping everyone on the same page. If you’re suffering from any of these symptoms, it’s probably time to hire a bookkeeper. Bookkeeping certifications are totally optional, unlike accounting, where a CPA designation is mandatory.
Master Your Finances: Explore the Best Book Keeping and Accounting Courses Online in 2025
This includes recording all clients’ income and any other taxable income sources. This information is critical for preparing tax returns and accurately reporting your taxable income. Anyone who works on a contract basis to finish a specific project or task is an independent contractor. You are considered a business by the law because you are an independent contractor. Hiring a professional to take care of your bookkeeping services will allow you the freedom you need to grow your business as an independent contractor.
- Consulting with a professional bookkeeper or accountant can provide valuable insights and ensure that you are in compliance with all financial regulations.
- Our team is ready to learn about your business and guide you to the right solution.
- A WIP report helps you understand whether you have over or under-billed for an ongoing job.
- Currently, that means you will pay 15.3 percent for social security, 12.4 percent for Medicare, and 2.9 percent for both.
- Since some bookkeeping firms also employ accountants, they may be able to handle your tax filing—and other accountant duties—in-house.
- By providing regular updates and insights, they can help you stay on track and make informed decisions about your business’s future.
Staying on Top of Your Bookkeeping
There are lots of places online to find a quality freelance bookkeeper, but Upwork.com is a good place to start. Just look for a bookkeeper with high reviews from other customers like you. If you have a paperless office with digitized documents, you may find you’re comfortable hiring and working with a freelancer online. A local freelance bookkeeper should be able to visit your business in person in order to collect and organize your paperwork. As you continue working with them, a flat rate may become feasible, and offer the benefit of a predictable bookkeeping expense in your monthly budget.
When you need to outsource your bookkeeping to a contractor.
These insights allow you to bid smarter and grow your profits over time. It is different, though, when a business employs an independent contractor. Contractors are responsible for paying their taxes on time and are not dependent on businesses to deduct income tax on their behalf.
- Hiring a local bookkeeping firm is usually a matter of Googling to find which firms are in your area, and then doing your homework to see which ones are the best fit for your business.
- This not only saves precious time but also ensures that contractors have a clear financial picture, allowing them to make informed decisions for the growth of their business.
- Although cash accounting is flexible and accessible, you must fit certain criteria set out by the IRS in order to use this method.
- Keeping track of taxable income is an important aspect of bookkeeping for independent contractors.
- You may create financial reports that will enable you to plan and make informed decisions for the future with the aid of proper bookkeeping.
Nearly half of all small businesses, however, do not currently employ an accountant or bookkeeper. A refined understanding of WIP, job costing, IRS requirements, and more is required. Also, some remote bookkeeping services are able to automatically import your financial information—transactions from bank and credit accounts, for instance.