4 Tools I Use to Save for Self-employment Taxes & Beyond - Photography Tips
Look, I get it, saving for your self-employment taxes suckss. I’ve been there. When I first started my business, I had to manually set aside a percentage of everything my business made + everything I paid myself (+ $$ I got from freelancing) into separate accounts. It was timely and such a HASSLE. Plus, the number would just sit on my bank account screen looming.
I’d watch it grow and my 22 yr old self would start to feel the temptation.
I was freshly graduated and broke, so I’d think, “what if I just used it to pay this bill and save the same amount later?” The problem with that, was when it came time to do it, I wouldn’t pay it back and later I’d be in a bind when it came down to paying my taxes. Luckily, I had a job as a bank teller and when filing time came, my refund from that position was enough to cover what I owed. But let’s be honest, my business didn’t make much of a profit for three years, because I reinvested everything back into it.
Fast forward a few years and now I’m full-time in my business (with a couple freelance gigs here and there). Time is my friend and I need every little bit of it to grow Chelsea Hall Photography. I’ve set up processes over the years with the help of these tools! I personally use each and I highly suggest them!
This goes without saying, but I’m going to anyway.
Always, always, always, consult with a professional if you’re confused or unsure about finances.
I am not a professional accountant or bookkeeper, these are just tools I find useful.
Qapital
Qapital is my #1 favorite savings app!
You can create as many savings goals as you’d like and Qapital keeps track of how much you have saved for each goal.
For example I have a saving goal for:
Christmas - Round Up Rule
Travel - Set & Forget Rule
Taxes- Freelance Rule
Each goal has different rules set up. When it comes to taxes, whenever I receive a deposit in my bank account, the app is notified and automatically uses the Freelance Rule and sets aside the percentage I’d like into my taxes goal! For travel, I set an amount I want to save (daily, weekly, monthly) using the Set & Forget rule. Lastly, I use the Round Up Rule for Christmas, each time I use my debit card, the app rounds up to the next dollar and deposits the change into my goal (+ I use a set & forget on this one too). Yup, I never have to touch my bank account for any of these, it does it for me!
Later, when I need the money to pay taxes, go on a trip, buy gifts, etc. I simply transfer it back to my bank account.
Something to note is that Qapital has implemented a membership fee this year after years of being free. However, with all the time and $$ it has saved me, I’ll gladly pay it for it my sanity.
Want to make $5 using Qapital and start saving for your 2021 taxes and savings goals!?
2. E*Trade
Listen up, because I’m going to scream this. START SAVING FOR YOUR RETIREMENT NOW. I do not care if you can only put $5, $10, $20 a month into your retirement savings, you need to start saving NOW.
After I left my bank teller position, I rolled over my 401k into a Roth IRA account using ETrade. I have an automatic monthly contribution from my personal bank account. A few years ago, I also started an SEP IRA! It’s a type of traditional IRA that let’s self-employed and small business owners save for retirement. The benefit to this account, is that I can have an auto monthly transfer coming from my business account and it’s TAX-DEDUCTIBLE! WOAH! Why are you not doing this?
I can’t get you any deals on this one, but maybe you can get a few tax-deductions coming your way!
3. Quickbooks Self-Employed
Alright, you’re gonna think I’m a little crazy. But I have DOUBLE the Quickbooks. I use Quickbooks Self-Employed for any freelancing (second shooting & contractor) work I do. && I also use the regular Quickbooks for my business, because I love it that much.
I have the self-employed version connected to my personal bank account where I monitor my expenses, payments, and any tax deductions. It’s really nice to have this separated from my regular business Quickbooks, because numbers can get messssy and when it comes to tax time, I like to have everything separate and ready to go. Another neat feature is that you can track mileage as well. I travel quite a bit for freelancing and business work, so it’s nice to keep everything documented and separated.
Want 50% off Quickbooks Self-Employed for your first 6 months?
4. Acorns
Acorns is a cool investment app that rounds up your pennies and turns into investments. This is an app I usually just have running in the background off my life. My favorite thing to do is leave it be for a couple months and come back to see how much my balance has grown!
You can get started (PLUS $5) by using our link below!
Again, this goes without saying, but I’m going to anyway.
Always, always, always, consult with a professional if you’re confused or unsure about finances.
I am not a professional accountant, or bookkeeper these are just tools I find useful.
-Chelsea
P.S. * Some of these links are referral links*