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Side-Job-300x225There are thousands of people who would like to make more money or save more money. It would allow them to afford the lifestyle that they truly want. But they run into problems, such as they are at the top of where they can get to at work, or they have scrimped and saved and really cannot cut costs anywhere else. They wonder where they should turn. In today’s society, packed with internet bills, cell phone bills, high utility fees, and many other things that cost a lot of money, many people need to pick up some sort of side income. Depending on how you earn the money, there could be tax consequences that you want to address (also where an accountant in Billings, Montana could help you out).

 

Getting a Second Job

To bring in extra cash, most people will get a second job. This could be serving at a bar or a restaurant in the evenings, or working part-time as a cashier at a retail store. There are the goods and the bads that come with this choice.

The benefits of a second job are that you will have regular hours. That means a steady second paycheck. Also, you will get another paycheck where taxes have been taken out; there will be less to worry about come tax season (on top of that, the employer will pay half of your FICA taxes).

The downsides, however, are that you are stuck working for someone else. You have to follow their hours, their guidelines, and you are likely to be stuck making close to minimum wage (being a server, however, you could make substantially more because of tips).

Working on the Side

Because of the lack of flexibility and the low pay of working a side job, many people choose to follow their passions, and monetize their hobbies or interests. This method takes a little more planning, but the benefits in the long run are a lot better.

The best part about starting your own side business is that you get to set your hours. You work when you want to, and as much as you want to. So if you only have a few hours per week, you don’t have to rearrange your entire schedule just to bring in some extra money. Another positive aspect is that you get to set your own rates. With proper marketing, and if you have the skills, you can make substantially more than minimum wage.

The biggest drawback of earning income on the side like this is that you will have to pay all of the taxes. Next tax season you will have a bigger tax bill that may drop your tax refund into the negatives. This is especially true because you will be paying ALL of the 15.3% into your FICA taxes (working for someone else, half of this is covered). Combine that with the fact that you have to find all of your own clients, and many people are deterred from this option (even though you can make a lot more, it is quite a bit harder).

Using an Accountant in Billings, Montana

If you hire an accountant in Billings, Montana, you will be able to take a lot of the worry away from your side business. Here at Practical Taxes, we know the tax laws, and if you are starting your own side business we can work with you to get the most deductions possible (and help to offset those taxes that you have to pay).

If you are interested in making more money on the side, consider starting a little side business (often called a side hustle). You will be happy that you did, and the extra income can go a long ways.

Practical Taxes knows all the current tax laws and can help you with your business needs including business planning, accounting, tax preparation, and more.

It is June, which means that the busy tax season has dwindled.  But, accountants are still busy at work, because aiding and preparing tax forms for customers is not the only responsibility of an accountant.  Accountants are busy helping businesses with tax preparations and things like payroll.  And if you own a small business and are looking for some assistance from an accountant, Practical Taxes is here to help.  If you are a small business owner and you have never considered hiring an accountant to assist you, here are a few reasons why you might consider it.

Depending on how many people you employ, figuring out the payroll consumes your time.  The time in which you are doing payroll cuts into either your work time or your free time or both.  The question is, would it make better financial sense if you could work more, or would the cost of an accountant be worth the time to which you could regain your free time.  Also accountants are familiar with our state’s payroll laws.  Also, an accountant can provide real advice as to future expenditures you plan to grow your business.  Also, an accountant can work with you to track you business spending throughout the year: a second opinion can be a valuable thing for your small business.

Reasons that you may want to hire an accountant

There’s plenty of reasons to consult with an accountant outside of tax season, and here are just a few for example.  Consider a purchase in real estate, or say you are setting aside a large chunk of money for your children, or maybe you’re just going to give someone a large gift, be it money or house or car, etc.  An accountant can help you to navigate the required taxes, or set up spaces in which you can protect assets from being dually taxed.

An accountant, while being a very good asset at the tax season, is a good person to call with other financial questions.  A good accountant may be able to save you both time and money in your small business or even in your own personal finances.

Practical Taxes

Practical Taxes is a full service accounting firm in Billings, Montana. We can help you get the most from your taxes, and make sure that you will get the maximum refund every year. But we don’t just do taxes! We can help with your bookkeeping, payroll, bank reconciliation, budgeting, and more. Give us a call at 406-894-2090 to learn more.