Being your own boss? Amazing.
Being your own accountant? Not so much.
When you’re self-employed, you call the shots—but that also means handling taxes on your own. And let’s be real: tracking expenses, making estimated payments, and figuring out deductions isn’t exactly what you signed up for.
Good news: with the right strategies (and a little help from an Austin, Texas CPA), you can stay ahead of tax season, avoid surprise bills, and maximize your deductions without losing your sanity.
Here are seven must-know tax tips every freelancer, contractor, and small business owner should have in their back pocket.
1. Stop Mixing Personal & Business Finances
If you’re still swiping the same debit card for groceries and business expenses, it’s time for a change. Keeping everything separate isn’t just smart, it’s a lifesaver come tax time.
✔ What to do: Open a business bank account and credit card under your LLC or sole proprietorship.
✔ Why it matters: You’ll save hours of frustration sorting through transactions AND reduce your risk of an IRS audit.
Pro Tip: Not sure if you should be an LLC, S-Corp, or C-Corp? A small business CPA in Austin can help you pick the right structure for tax savings.
2. Track Your Income & Expenses Like a Pro
Taxes get complicated real fast when you don’t know what’s coming in or going out. If your “system” involves a shoebox of receipts, we need to talk.
✔ What to do: Use accounting software like QuickBooks, Xero, or FreshBooks to track everything in real time.
✔ Why it matters: More organization = fewer tax headaches and more deductions you won’t miss.
Pro Tip: Hate spreadsheets? A CPA in Austin, Texas can handle bookkeeping for you so you can focus on what you do best.
3. Pay Your Taxes Quarterly (Trust Us, It’s Better This Way)
Here’s the thing: the IRS doesn’t like surprises, and neither should you. Instead of paying one massive tax bill in April, self-employed professionals are expected to make quarterly estimated payments.
✔ What to do: Set up auto-reminders for April 15, June 15, September 15, and January 15 so you never miss a deadline.
✔ Why it matters: Paying quarterly helps you avoid IRS penalties and keeps your cash flow in check.
Not sure how much to pay? A tax advisor in Austin can calculate your estimated taxes and make sure you’re paying just the right amount—not too little, not too much.
4. Keep Every Receipt Like It’s Worth Gold (Because It Is)
You can’t write off business expenses if you don’t have proof you paid for them. If you’re relying on your memory to track deductions, you’re probably leaving money on the table.
✔ What to do: Use apps like Expensify, Dext, or QuickBooks Self-Employed to store digital copies of receipts.
✔ Why it matters: If the IRS ever asks, you’ll be ready.
What’s deductible? Business meals, software, office supplies, marketing, education—you name it. An Austin tax accountant can make sure you’re claiming every legit deduction.
5. Don’t Sleep on Home Office & Mileage Deductions
Working from home? Driving for business? Congrats! You’ve got tax breaks waiting for you.
✔ Home Office Deduction: If you have a dedicated workspace at home, you can deduct a portion of rent/mortgage, utilities, and internet.
✔ Mileage Deduction: If you drive for work (realtors, consultants, freelancers), you can deduct $0.655 per mile in 2023—that adds up fast.
Not sure what counts? An Austin accounting service can help you claim these deductions properly (and avoid IRS red flags).
6. Plan for Tax Season NOW (Not in April)
If you’re scrambling to find documents and crunch numbers the week before the tax deadline, you’re doing it wrong. Planning ahead means fewer surprises and possibly a lower tax bill.
What to do:
✔ Set aside 25-30% of your income for taxes so you’re not panicking later.
✔ Keep all tax forms (1099s, invoices) in one organized place.
✔ Meet with a CPA firm in Austin, Texas, before year-end to optimize your tax strategy.
Pro Tip: Tax planning isn’t just about filing on time, it’s about paying less. An Austin, TX accountant can show you how to legally lower your tax bill.
7. Bring in a CPA to Maximize Your Tax Savings
Look, self-employed taxes are not for the faint of heart. Sure, you could use DIY tax software but that’s like bringing a butter knife to a gunfight.
Why work with a CPA?
✔ They find deductions you didn’t even know existed.
✔ They help you pay less in taxes legally.
✔ They make sure your taxes are done right (and IRS-proofed).
Want a smarter tax plan? A CPA in Austin, Texas can handle your taxes so you can focus on making more money.
Ready to Stop Overpaying in Taxes? Let’s Talk.
Taxes don’t have to be stressful when you have a plan.
At Insogna CPA, we help self-employed professionals cut through the tax confusion, stay organized, and pay less (without breaking any IRS rules).
Let’s build a tax strategy that works for you. Schedule a consultation with an Austin small business accountant today and start keeping more of what you earn!