How to Make Independent Contractor Bookkeeping Easier with Deel
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- Deel's all-in-one platform provides independent contractors with specialized accounting tools and services.
- You can create and send invoices, manage expenses, track income, and receive tax support from qualified advisors.
- It caters to both part-time freelancers and full-time contractors, offering a centralized solution for maintaining accurate financial records and preparing for tax season.
Independent contracting brings both creative opportunities and a suite of managerial responsibilities. As an independent contractor, you are not only the primary creative force but also the CEO, responsible for strategic decisions and financial management.
While you can use a variety of payment and invoicing tools as a Deel contractor, using Deel’s all-in-one platform enables you to consolidate your processes and increase efficiency. Here’s a closer look at how you can benefit.
Automate your invoice process
Deel's Invoice Generator is a user-friendly solution that not only simplifies the invoicing process but also enhances professionalism and efficiency for independent contractors.
By automating the creation, sending, and storage of invoices, Deel empowers you to focus on what you do best while ensuring a smooth and organized financial workflow.
With Deel's Invoice Generator, you can easily create professional invoices by adding your invoice breakdown and client information. The tool ensures that your invoices look polished and adhere to industry standards, projecting a level of professionalism that reflects positively on your business.
It also eliminates the need to manually create invoices for each project. This time-saving automation lets you focus on your core work rather than administrative tasks or creating new invoices every time you need to request payment from a client.
Once your invoice is generated, you can send it to anyone, even clients you collaborate with outside of the Deel platform. This flexibility ensures that all your clients, regardless of their platform preference, can seamlessly receive and process your invoices.
The platform also allows you to store all your invoices in one secure place. You can easily access and retrieve the necessary financial information, simplifying the often daunting process of tax preparation for independent contractors. This not only keeps your financial record-keeping organized but also simplifies the invoicing process for repeat clients.
Manage expenses in one place
As an independent contractor, tracking and managing your expenses is essential. Not only does it ensure precise financial reporting and compliance for tax purposes, but it also allows you to claim eligible tax deductions.
By separating your personal expenses and business expenses, you can simplify your financial management and avoid confusion. Moreover, a centralized system for expense tracking encourages transparency and accountability, making it easier to demonstrate fiscal responsibility to clients and potential partners.
Within the Deel platform, you can seamlessly manage all aspects of your finances, including invoices, transactions, tax forms, and business expenses.
Deel's Expense Tracker tool serves as a comprehensive solution for efficiently handling work-related expenses. Simply upload your receipts, categorize expenditures, and allocate them to specific clients for streamlined reimbursement tracking. This tool not only saves valuable time on year-end bookkeeping but also increases visibility into your spending, ensuring no expense goes overlooked.
See also: How to Add an Expense to a Contract
Track income with the Accounting feature
As an independent contractor, tracking your cash flow is not just a convenience, but also a vital step towards success. By doing so, you can more accurately report your income, budget your expenses, and plan for your financial future.
Using a dedicated accounting system or bookkeeping platform for income tracking is a practical necessity that can improve your financial management, compliance, and overall financial well-being. Having an easy-to-use income tracking system also facilitates transparency in your financial dealings, which can help build trust with clients and streamline business transactions.
In your Deel dashboard, you can find the Accounting feature that provides an overview of your paid invoices and expenses. This overview can be helpful in determining your net income for different time periods and forecasting future income.
As a contractor, you can view the following details:
- Calculated net income: This is a general calculation of your taxable base. For country-specific tax calculations, please consult a tax advisor
- Calculated total income: This is based only on paid invoices and does not include unpaid invoices
- Calculated total expenses: Your total amount of expenses during the designated time period
You can customize your accounting report by changing the income currency and setting a custom time period for more detailed data before downloading it as a PDF.
Get tax and filing support
Contractors, whether dealing with international or local clients, often face tax challenges.
Navigating diverse tax laws, handling withholding tax, leveraging tax treaties, maintaining meticulous records, and managing currency exchange impacts can be complex. Tax support is essential in both scenarios to ensure compliance, prevent disputes, and optimize financial outcomes.
Deel's Tax Advice Marketplace is a valuable resource designed exclusively for independent contractors seeking professional tax guidance.
Contractors can easily access the Tax Advice tab on their home page within the Deel platform to connect with a qualified tax advisor in their country of residence. It's a straightforward process that provides personalized assistance tailored to the contractor's specific needs.
If you don't find the Tax Advice tab on your home page, it means this service is not yet available in your country. Currently, contractors can use the Tax Advice Marketplace if they are tax residents in the following countries:
- United Kingdom
Each tax advisor in the marketplace is thoroughly vetted. To be considered qualified, advisors must meet specific criteria:
- Signed Platform Services Agreement with Deel
- Certificate of Incorporation, Ownership Information, and proof of company registration (for legal entities)
- Completion of the Know Your Customer (KYC) process on the Deel platform
- Certificate of Good Standing from the supervisory authority
- Relevant qualifications enabling them to provide tax advice in their country of residence
- Insurance Certificate
Deel also offers a Tax Feature for those with US-based contracts. This feature allows contractors and client companies to easily generate and manage tax forms (and in some cases, help with tax filing).
When creating a contract, Deel collects the required information to generate the necessary IRS forms, such as Form W9 for US citizens, W-8BEN or W-8BEN-E for non-US contractors working under a US entity, and 1099s for tracking non-employee compensation.
Simplify independent contractor bookkeeping with Deel
As an independent contractor, you operate similarly to a small business owner—which requires maintaining accurate financial records, keeping track of income statements, and properly preparing for tax season.
Whether you’re a part-time freelancer or full-time contractor, you can benefit from specialized contractor accounting services. With Deel’s all-in-one platform, you gain access to bookkeeping services, diverse payment methods, invoice generators, expense trackers, and more, all in one place.
Sign up for the Deel platform today to simplify your independent contractor bookkeeping.