Independent Contractors: Everything You Need to Know

The thing is, we have to do these deliveries on our own dime. Doordash and Uber Eats and Grubhub don’t care what it costs and it really isn’t their business. If we can do it well and do it inexpensively, https://www.bookstime.com/ there’s more left over. But if it costs us to get the stuff done, that comes out of OUR pockets, not theirs. Yes, you can invite an accountant to collaborate with you for free.

• In a service-based business, a time-tracking application could integrate with the accounting software to add labor to a client invoice.
• QuickBooks has implemented a number of safeguards to ensure that your full time employees have state and federal taxes withheld at the appropriate levels.
• Employees are on a business’s payroll, meaning the business that employs that person provides access to benefits and withholds taxes.
• Our company worked with several independent contractors in different service realms.
• Thus, locate the space labeled “Accountant” and produce the legal name of the Accountant being commissioned.
• By definition, an independent contractor is not an employee.
• See how each app feels—and if it gets the way you freelance.
• This method can be more complex, as the money is accounted for when the work is finished.

But tracking those miles are just a different enough animal that I wanted to list it separately. That means it’s all up to you to do the things that can support your standing. Whether it’s income verification, or a replacement for employment verification with Uber Eats, Doordash, etc., good records will help you do that. But if you don’t have a record of your expenses, Uncle Sam is happy to tax you based on the larger amount. Sort expenses with a swipe, track your mileage, and prep for taxes, all from your smartphone.

How can accounting software help with the bookkeeping of independent contractors?

Additionally, using Lunafi’s tax organizer can save you time and money on bookkeeping and accounting fees. Features include invoicing, expenses, time tracking, projects, estimates, payments, reporting, and a mobile app. While some other advanced programs feel bookkeeping for independent contractors like they require an accounting degree to navigate, FreshBooks keeps it simple. The free version is pretty impressive, even compared to some paid accounting apps. It includes invoicing, live bank connections, income and expense tracking, and collaborators.

If you’re slightly fuzzy on if you know the taxes, get help. The advantage of a program is it’s designed to do exactly what you want to do. Sometimes you have to know more about the categories, and that can make it intimidating. I don’t want you to think you have to be at a certain place or know certain things before you can get started.

QuickBooks Online

You can do even more with QuickBooks by connecting it with Zapier to automate your accounting workflows. Here are a couple of examples to get you started, but Zapier works with any app in your tech stack. I could tell you about how I migrated my whole Google Docs invoice stack to Wave in a “fun” hour, but it’s time to stop fanboying. If you’re not sold by now, you might be once you connect Wave with Zapier to integrate it with the rest of the apps you use. Here are some examples, but you can choose from almost any app.