The challenge we see in our practice is that Independent Contractors do not take the time to keep good accounting records. Keeping good records is the fuel to your business when it comes to taxes.
Fundera magazine, the small business resource center have 11 accounting tips for small business owners and self-employed individuals that we like to share with you. These tips are not just for Uber or Lyft drivers. If you are am Amazon delivery driver, or postmate, ubereats, doordash or instracart, you may want to take note of these.
- Separate business and personal expenses
- Track every business expense
- Accurately record income
- Consider hiring a professional, even if temporarily
- Automate accounting practices with accounting software
- Dedicate time to update your books
- Keep tabs on labor costs
- Be prepared for major expenses
- Maintain inventory records
- Follow up on invoices and receivables to avoid overpaying on taxes
- Create financial projections for future years