While being a freelancer allows you the freedom of setting your own schedule and being your own boss, it can complicate taxes. For example, without having an employer, you will be responsible for paying your own contributions to Social Security and Medicare. Therefore, many contractors turn to professionals for accounting assistance. Not only can it prevent potentially costly errors, but it can also free up precious time so you can focus on your work output. 

How Can an Accountant Help a Freelancer?

1. Shed Light on Quarterly Estimations

Freelancers are obligated to pay estimated taxes each quarter. This can be difficult if your work volume fluctuates. As a result, you run the risk of over or underpaying on your taxes. An accountant will be able to look over your earnings to give you a more accurate number.

2. Assist With Deductions

For the self-employed, deductions can greatly reduce a person’s overall tax burden. However, claiming deductions is often easier said than done. You’ll need to meet specific criteria and provide evidence in the form of receipts and financial statements. A CPA can help not only prove your claim but also alert you to deductions you may be unaware of. 

3. Offer Year-Long Guidance

Accounting assistance is beneficial all year long, not just during tax season. Freelancers may have concerns about boosting retirement savings since they don’t have access to an employer-provided 401(k). An accountant can help you plan for retirement in a way that makes sense for a freelancer. He or she can also offer guidance on other important financial decisions, such as choosing the best business formation option. 

Whether you’re a small business owner or a freelancer in Pagosa Springs, CO, turn to Wilson, Rea, Beckel & Associates CPA’s LLC to make sense of your finances. These accounting professionals offer a variety of services, including tax planning and IRS representation. They also assist with bookkeeping and payroll, and can even advise your team on QuickBooks® software. Read more about how they can help by visiting them online. Clients in the Four Corners area can also call (970) 731-1040 to schedule an appointment today.