In the viewpoint of the law, you are a business if you work as an independent contractor. You also have to handle business bookkeeping and taxes as a business. While this may be daunting, the appropriate tool can assist you with all of your accounting requirements. There are many different types of accounting programs to pick from, ranging from free internet and mobile solutions to more pricey desktop platforms. So, how do you decide where to begin?
First, think about the features you’ll require. Do you pay yourself a biweekly paycheck or do you file your own taxes with the government every quarter? Do you need to keep track of any business assets or inventory? Is it necessary to invoice and collect payments? Comprehensive programs that address most or all of these needs are available, but they may be more expensive. It’s important to note that the price of these applications might vary — some have monthly subscriptions, some have one-time expenses, and one is completely free to use.
Contractor accounting is a burgeoning field in the United Kingdom. Contractors are increasingly looking for an agency to take care of all of their accounting needs. Contractor accounting services may be required for a variety of reasons. Some instances are as follows:
QuickBooks
For good reason, Intuit’s QuickBooks is the most well-known accounting app. While it isn’t flawless, it is the best accounting program available today and sets the standard high for what corporate money management apps can accomplish. QuickBooks is ideal for a wide range of organizations, from sole proprietorships to multi-billion-dollar corporations.
This application is the industry standard for small business accounting, and it includes many more features than an independent contractor will likely want. However, it also provides everything an independent contractor could possibly require. Live bank connections, invoicing, payment processing, and mobile apps are all examples of this.
QuickBooks is available in Windows and Mac versions, as well as an online version (which is best for independent contractors). There is a self-employed version and a complete version, both of which should suffice for your business needs. QuickBooks Self-Employed plans range in price from $7.50 per month to $17 per month for the Live Tax Bundle, which includes live CPA assistance.
Contractor Accounting Services
Contractors who provide auditing, risk management, financial reporting, or value added solutions centered on their own business requirements will frequently be required by companies engaged in specific project duties. A manufacturer, for example, would hire an auditor to examine its accounting methods before launching a new product.
obtaining certification for products destined for international distribution An exporter might hire a financial reporting service to look over its worldwide distribution procedure. Before certification, a software developer may need contractors to provide financial reporting or audit its business operations. Accounting services for contractors who specialize on their client’s industry-specific demands are generally require by these firms.
The services provided by these vendors enable them to meet their operational and financial reporting objectives.
Contractor accounting services should focus on their own industry-specific requirements, according to business clients. A software developer, for example, might be required by a manufacturing company that manufactures components and accessories to create successful financial reports. A software vendor may also request that company clients conduct a survey of their business processes and examine their quality control procedures. In addition, a vendor may request that a contractor assess and audit its process for quality assurance and regulatory compliance.
Collaboration with Tax Service Providers
Some contractor accounting services may focus on tax planning and other associated services, such as payroll preparation and filing, compliance with federal and state tax regulations, and professional standards compliance. Contractors can use accounting services in combination with accountants to form a limited business. Although the limited business is separate from the contractors, it is directed by them.
Some accounting businesses focus on assisting government contractors in adhering to local, state, and federal regulations. These accounting firms assist government contractors in developing and maintaining accurate records of orders and payments from the government.
These government contractors also require support with accounting and financial reporting. Contractor accounting services specializing in governmental compliance and record-keeping are available for this type of business. These companies may also offer specialist advice on how to set up an in-house government contract, including the production and filing of federal and local tax returns.
To provide these specialized accounting services for contractors, some accountants collaborate with tax services organizations. Tax accountants can advise the government contractor on the quality and dependability of the tax return preparer’s records, which is an advantage of using their services.
Contractor accounting services may also include the creation and filing of subcontractor tax reports. Furthermore, accounting services for contractors related with government contract accounting services might aid in the acquisition of needed working capital loans.
QuickBooks Pro Accounting Software
QuickBooks Pro accounting software is recommend for small business clients who want to maximize their earning potential. Various accounting tools are include in this software package, allowing business clients to acquire information quickly and conveniently.
QuickBooks Enterprise Solutions includes many of the accounting functions included in the QuickBooks Pro accounting software suite. Businesses interested in adopting QuickBooks Pro software. Make sure they have a QuickBooks Pro Certification, which verifies that they know how to use the software’s accounting tools. Small firms who use QuickBooks Pro accounting software reap the following accounting benefits:
The majority of accounting businesses offer tax planning advising services. Business clients use these consulting services to identify a solution that will help them better manage their finances. Because of the different accounting capabilities that QuickBooks Pro accounting software provides, many business clients profit from it.
Whether providing QuickBooks Pro accounting services or QuickBooks Pro consulting services, accounting firms must demonstrate that they are educated about how to utilize the accounting software properly and optimize the software’s benefits to the customer.
Read Also: Which QuickBooks Product Is Best For You?
Using QuickBooks Pro to Customize
This software has around for over a decade and is designed to be extremely flexible in order to fulfill the needs of virtually any business. Contractors, fishing fleets, retail establishments, restaurants, bed & breakfasts, used car dealerships, and dentist offices have all used it. Its adaptability is its greatest asset. It’s similar to creating a custom home rather than moving into a prefabricated one, in my opinion.
Pro provides you with a variety of industry-specific charts of accounts throughout the setup procedure (construction, agriculture, advertising, manufacturing, etc.). If you select to build from the list, you will perform around 75% of the same computations as the other alternatives. You create your item list from start, and if you use classes, it’s because you’ve opted to monitor something unique that interests you.
