Unlike before, accountants today now get to work remotely due to the advent of online accounting software. As long as they have access to a computer and reliable internet, they can now freely work from the comforts of their home and thereby save money and time.
That is why there are now plenty of freelance accountants in Australia who are conveniently working from their homes. If you’re planning to make the shift to this type of setup, you first need to know about the taxes that apply to a freelance accountant.
Here are some of the things you need to keep in mind:
Deduct Business Expenses
Now that you have finally left the corporate world and will be working from the comforts of your home, you can deduct certain business expenses from your taxable income to help you save money. You will also find that a lot of the costs that come with running a business from your home can usually be claimed back via your annual income tax return.
Claim Travel Costs
When you need to travel significant distances to get to your clients, you can claim the associated costs via two methods. The first method is based on cents per kilometre and is applicable when the trip is shorter than 5,000 kilometres ever year. You can claim up to 68 cents per kilometre with this option.
The second method is the logbook method, which is ideal for greater distances. It will need a detailed travel log that is taken over a minimum of 12 weeks. The log should contain information about kilometres travelled, odometer readings, fuel costs, and so on.
Deduct Networking Opportunities
It is likely that you can claim back the annual costs of membership to any professional industry associations that you have when you are now working from home. You can also deduct expenses that you pay when you undertake additional training in your current field.
Conclusion
These are some of the things you should know about when you become a freelance accountant in Australia. Of course, when you move from the corporate world to remote work, your expenses will change and so will your taxes. Overall, it’s more beneficial compared to working at a corporate office.
It’s an excellent time for accountants to jump on board and see what remote work can do. All you need to have are a few tools, excellent work ethic, and the passion to be good in what you do. Online accounting software has made things so much easier for accountants today.
Now, accountants can have more control over their schedule and set aside time for the things that they enjoy. Plus, they also don’t need to pay a considerable amount of taxes, which means that they get to enjoy more income.
Make sure to stay on top of your expenses by tracking your revenue through various invoicing and payment apps. You also need to keep an eye on small costs, such as software, computers, and phones.
If you’re looking for an accountant for your business, The Ecommerce Accountant can help. Contact us today.