Managing capital and planning to pay taxes is difficult for almost everyone, but when it comes to jobs such as self-employment or entrepreneurship, this difficulty becomes even greater. The main burden of overseeing the tax payment process for other employees rests with the employer; Self-employed people and their own entrepreneurs have to do this. Join us if you have just started your own business or need financial advice to make it easier for you to file your tax return. In the continuation of this article, we will introduce you to the solutions that, in consultation with accountants and Tax advisors They have been collected and by adding them to the list of tasks and daily activities and using them, you will learn how to Easy payment of taxes Set aside some of your income and save.
1. Use spreadsheet software to record income and expenses
If you find the process of recording income and expenses too difficult and cumbersome, you can do this with one of the spreadsheet software. [Spreadsheet/ صفحه گسترده: نرمافزارهایی نظیر گوگلشیت که بهصورت جدول طراحی میشوند و امکان واردکردن اطلاعات در سطرها و ستونهای مختلف جداول آنها و نیز امکان انجام محاسبههای ریاضی روی آنها وجود دارد] Individuals can easily enter details of their monthly income and expense information into spreadsheets. The simplicity of working with spreadsheets makes this software an ideal choice for freelancers.
Employers can also take full advantage of this software. The mathematical calculations performed on the entered data provide all the required information to the employers and they can use this information to gain a better understanding of the financial health of their company. Another advantage of having this information is the complexity of the presentation process Tax returns It will be greatly reduced in the future.
2. Determining and defining standard and specific operating methods for updating the revenue and expense account
It is recommended that you define precise, specific, and pre-determined methods for updating your income and expense account on a monthly basis; Otherwise, not only will you not have the opportunity to file a tax return when it is due, but you may have to pay more taxes.
Just as you carefully monitor and plan sales and marketing methods and procedures in advance, be careful to determine how to update your revenue and expense account. The integrity of the methods used throughout the year is another important factor that should not be forgotten (you should not constantly change the method used).
Specify a specific day of the month and spend your time recording that information.
3. Design a system to manage purchase receipts
Many of the purchases we make deduct a certain amount of tax; Therefore, recording information about receipts is also important. But managing all the expenses and purchases in the midst of the hustle and bustle of the working day is not easy at all. A suggested way to avoid this is to provide accounting software or cost management software that also has a dedicated mobile application (software such as Freshbooks, Quickbooks or Wave); This way you can take a photo of it as soon as you receive it. You can also create a separate folder in your email and save it only for electronic receipts; Then, once a month, transfer the information stored in the folder to the accounting software.
By using small systems like the one mentioned above, you will save a considerable amount of time in the long run; In addition, the result of using these methods will be more consistent than when you want to provide information to the accountant.
4. Planning for retirement
Just because you do not have an employer and work for yourself does not mean that you should ignore the savings for the future. Of course, your future savings as an entrepreneur or self-employed person are not as clear as those of government employees, workers and employees of private companies; Because the employer of such persons deducts a certain amount from their salary (which includes taxes) during a monthly process and deposits it in the social security account. For the years for which the amount is paid into Social Security, they receive a certain monthly salary during retirement. The procedure is exactly the same for you, except that you have to personally deposit this amount into the Social Security account and, so to speak, refuse the insurance for yourself. Your monthly Social Security deposit is determined by the minimum wage you receive (depending on various factors, you usually have to deduct between 18% and 27% of the monthly salary you register as insurance).
5. Create a separate account to pay taxes
Of course, this is only for those who have officially registered with the employment office, not those who work without registering real or legal information. This tax is usually paid for the use of services such as health services, which will be between 5 and 25 percent of the total salary received, depending on various factors.
If you have registered your work and your salary is taxed, it is recommended that you open a separate account and deposit 10% of your net income (gross income minus other common operating expenses) into it each month. The goal is to pay the tax amount using this account during a quarterly process (beginning or end of each new season). It is also recommended that you choose an account with the maximum return for this savings.
The same is true for entrepreneurs, except that they need to pay more attention to this account and its savings; Because their taxes will be higher compared to freelancers.
6. Deducting part of the income from paying various taxes
The duty to pay taxes to employees who work in a particular organization or organization is with the employer. But when you work for yourself, you have to pay the tax yourself. Therefore, planning and saving for the payment of various taxes should be one of your priorities.
It is recommended to calculate the total percentage of all taxes to be paid (income tax, import tax, transaction tax, etc.); Then multiply this percentage by the amount of net income you think you will have at the end of the month. Save the amount of this equation in an account like the one mentioned earlier.
7. Transfer funds from current account to personal account in a regular process
Once you have set aside enough money to pay the various taxes, transfer part of the amount in your current account to your personal account on a regular basis.
One of the main concerns of self-employed people and entrepreneurs is the lack of a stable income. They sometimes have trouble adjusting to these conditions. The recommended solution to prevent this from becoming a problem is to transfer a certain amount of income from work to a personal account in a regular process. In this way, the personal account becomes more stable and is not much affected by the increase or decrease of income.
8. Prepare a current account credit card for business income
When it comes to self-employment and freelancing, try to spend as much time as possible on the work for which you are paid; On the other hand, you limit unpaid work (things like sending emails and writing proposals that are not usually paid). This way, you can maximize your wages.
For maximum profitability, in addition to these considerations, it is recommended that you open a separate account for your earnings. This makes it much easier to determine your income and expenses, and as a result, you can gain a better understanding of how profitable your business is; Also, deducting the desired amount for paying taxes will be done more easily.
There are several ways to make your tax return easier. In this article, we have listed the most important ones as much as possible. If you can use the recommended software, be sure to do so; Because they are both easy to work with and give you more accurate and consistent information. In addition to following these tips and tricks, it’s a good idea to take a look at retirement savings: Freelancers are sometimes overlooked in paying taxes and other living expenses. In any case, as you get older, you will not have the energy and strength you need now, and for peace of mind, you need to set aside savings.
If you come up with something out of the ordinary, then they have to re-think their position. We look forward to hearing from you.