Tax Tips for Freelancers with Financial Strategist Melissa Whaley-EP020

Though tax season is a stressful time for many freelancers, we avoid asking for help or even talking about money. But the subject of finances shouldn’t be taboo – nor should it be a source of anxiety for you as an entrepreneur. In fact, today’s guest will teach you how to karate chop that stress and get your finances in order. 

Melissa Whaley is a licensed tax professional, financial strategist and California mama of three. If profit is not a word you use to describe your business, then Melissa will work with you to build systems and make that dream a reality. As the owner of Whaley Bookkeeping and Tax, she helps solopreneurs and small businesses get their finances on the right track via virtual bookkeeping and tax consulting services. Listen in as Melissa shares strategies for tracking expenses and calculating quarterly estimated taxes, and get her advice regarding the free online tools available. Now is the time to stop feeling overwhelmed and get the deductions you deserve!

Key Takeaways

The difference between revenue and profit

  • Revenue denotes the amount of money paid to a business
  • Operating expenses and taxes must be subtracted from revenue to determine profit

How much should freelancers be setting aside for taxes

  • 5% of profit at a minimum
  • Melissa recommends 25%

The deductions freelancers deserve but often miss

  • Cell phone bill
  • Monthly subscriptions to tools/apps
  • Mileage
  • Client dinners

The importance of creating a system to track expenses and income

  • Ensures freelancer will receive deserved deductions
  • Allows self-employed to pay taxes quarterly
  • Prevents stress at tax time

The necessity of establishing a relationship with a tax professional

  • No easy answers apply to every business
  • Help understand how business, personal and family finances work together
  • Assist with decision-making as business grows and changes
  • Identify deductions specific to your situation
  • Interpret IRS codes and/or represent you if necessary

Melissa’s top tip for new and aspiring online business owners

  • Open a separate bank account for business

 

Resources

Wave Accounting

 

Connect with Melissa Whaley

Melissa Whaley is a licensed Tax Pro, Financial Strategist, and California Momma of 3. If profit is not a word you use to describe your business then Melissa will work with you to build systems to make that dream a reality. She helps entrepreneurs karate chop their stress and get their finances in order through systems and planning.

Website

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