Self-employed sole proprietors usually must file an additional tax form to report their Social Security tax and Medicare tax. Because there is no matching contribution from an employer, self-employed persons are required to pay a higher rate on Social Security tax and Medicare tax than employed persons. To do so, sole proprietors must file IRS Schedule SE along with their Form 1040.
Company employees generally pay a Social Security tax rate of 6.
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Whatever your business, getting paid by clients in a timely manner is key to keeping the cash flowing. But ensuring you're paid on time is not always as easy as it sounds. So how can you manage and improve your accounts receivable? Here are 6 tips to get the greenbacks moving.
Bill Electronically
Cut your wait time between several days and a week by simply getting email addresses from customers and invoicing them electronically.
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Running a small business successfully requires you to wear many different hats throughout the course of a day. Few responsibilities are as critical as maintaining accurate financial records, so the decisions you make regarding your company's accounting practices are important. Making the switch to an online accounting format can be beneficial for your small company.
Here are three reasons why you should consider making the switch to online accounting in order to improve the financial health of your small business in the future.
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If this is the year that you decided to take the big leap into self-employment and open a freelance graphic design business, then it is important you know how to handle issues related to its income tax liabilities. Since there are many differences between filing your taxes as an individual and filing as a business, following these tips will help you:
Tip: Don't Mix Your Personal Money with Your Business Money
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Being a business owner comes with a lot of responsibility. There are tasks that must be done each day and you'll want to be sure you stay on top of things at work. If you're a small business, this can be even more challenging and may require you to have knowledge in all areas of the business. One of these may include accounting, and knowing some basic tips that may enable you to get the job done correctly are sure to be ideal.
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