How To Cut Through The Red Tape As A Self-Employed Individual Growing Your Business
When you’re self-employed, it can often feel like you’re swimming in a sea of paperwork with no end in sight. Between keeping track of expenses, managing your inventory, and ensuring that your taxes are filed on time, it’s easy to get overwhelmed. And if you’re trying to grow your business? Forget it—the red tape only gets thicker.
What are Self-Employed Loans?
Self employed lending needs have evolved, and today, several options are open to business owners. If you’re looking for a loan as a self-employed individual, the first step is to understand which type of loan is best for your needs. Do you need a short-term loan to cover an unexpected expense? A long-term loan to finance
Here are seven tips to help you cut through the red tape and keep your business growing:
1. Keep Detailed Records
This one might seem like a no-brainer, but it’s important to emphasize nonetheless. When you’re self-employed, everything is tax-deductible—from the cost of your office supplies to the mileage on your car. But for these deductions to be valid, you need to have detailed records to back them up. That means keeping receipts for everything and having a system in place for tracking your income and expenses.
2. Stay Organized
A key part of keeping detailed records is staying organized. This means having a designated place for all your business-related documents, whether in a physical filing cabinet or a digital folder on your computer. Whatever system you choose, just make sure that it works for you—and that you stick to it religiously. It’ll make tax time a whole lot easier.
3. File Your Taxes On Time (And Pay Your Estimated Taxes)
This one is non-negotiable. When you’re self-employed, you are responsible for paying your own taxes, meaning no more withholding from your paycheck come April 15. Instead, you’ll need to pay estimated taxes throughout the year (usually quarterly). And while it might be tempting to put off paying your taxes until the last minute, trust us when we say that it’s not worth the headache. File on time, and pay what you owe—it’ll save you a lot of stress (and money) in the long run.
4. Hire A Professional
If the thought of dealing with all this paperwork yourself is enough to make your head spin, consider hiring a professional. A good accountant can help you keep track of your finances, file your taxes, and even identify deductions that you might not have thought of on your own. In other words, they can take care of the nitty-gritty details so that you can focus on running your business—and growing it.
5. Stay Up-To-Date On The Latest Changes
The tax code is always changing, which means that what was deductible last year might not be deductible this year. It’s important to stay up-to-date on the latest changes to take advantage of all the deductions and credits you’re entitled to. The best way to do this is to sign up for email alerts from the IRS or consult with a tax professional regularly.
Dealing with red tape is never fun—but as a self-employed individual, it’s just part of the gig. By staying organized, filing your taxes on time, and keeping up-to-date on the latest changes, you can minimize the headache and get back to growing your business.
6. Plan Ahead
Last but not least, remember to plan ahead. This means setting aside money each month to cover your estimated taxes and any other business expenses that might come up throughout the year. If you can get into the habit of budgeting and saving early on, it’ll make dealing with the red tape a whole lot easier—and it’ll leave you with one less thing to worry about come tax time.
The bottom line? Being self-employed doesn’t have to be a headache. With a little organization and a lot of tenacity, you can cut through the red tape and get back to what you do best: running your business. So what are you waiting for? Get started today.
7. Take Advantage of Technology
Thankfully, technology has come a long way in recent years—and there are now plenty of tools and resources available to help self-employed individuals stay organized and on top of their taxes. From accounting software to apps that track your mileage, there’s no excuse for not being prepared come tax time. So take advantage of the resources that are available to you, and make your life a whole lot easier in the process.
Cutting through the red tape as a self-employed individual doesn’t have to be impossible—it just takes a little bit of organization and effort. By staying on top of your records, staying organized, and filing your taxes on time, you can free up valuable time and energy to focus on what’s really important: growing your business.
Review How To Cut Through The Red Tape As A Self-Employed Individual Growing Your Business.