Accounting…taxation…invoicing…receipts.
These may not be the most thrilling terms you envisioned when embarking on your freelancing journey. They don’t exactly evoke fun and excitement, do they? When you first delved into your side gig, your primary goal was likely to earn a decent income pursuing your passion and enjoying what you do.
Nevertheless, individuals who juggle a side hustle alongside their main occupation, or those daring enough to transition their side gig into a full-time endeavor, understand the paramount importance of organizing their finances for tax purposes. Beyond taxation, comprehending your earnings and expenditures is crucial for establishing measurable objectives for your freelancing endeavors, and ultimately, possibly bidding farewell to your full-time job.
However, amidst a plethora of other pressing matters, particularly if accounting is not your forte, managing finances can become a daunting task that you frequently postpone. Below, we’ve compiled a list of five beneficial AI tools to assist you in monitoring your side hustle finances:
1. Dext
This tool streamlines your accounting procedures, offering a special feature for freelancers engaged in e-commerce on platforms like Etsy or eBay. Dext enhances efficiency, saves time on expense tracking and receipt management, and facilitates valuable data extraction.
2. Booke AI
Utilizing GPT-4 technology, this innovative app learns from your categorization patterns to enhance transaction segmentation with each use. It seamlessly integrates with popular accounting software such as Zoho Books or Xero, boasting an AI assistant to identify discrepancies, offer reconciliation advice, and enhance efficiency.
3. TurboTax
Renowned for aiding professionals in resolving tax matters, TurboTax provides comprehensive filing support. Its TurboTax Live feature offers assistance not only from human experts but also from an AI-powered “Intuit Assist.”
While the following two tools may not prominently feature AI, they offer automation akin to AI-driven platforms.
4. QuickBooks Self-Employed
Tailored for self-employed individuals like contractors or freelancers, QuickBooks Self-Employed integrates with your bank account, categorizes expenses, and even calculates quarterly tax estimates, among other useful functions.
5. FreshBooks
Another excellent option for freelancers managing their business finances, FreshBooks includes time-tracking features to enhance work efficiency. With distinct offerings for self-employed individuals and freelance professionals, it’s essential to review both options thoroughly to determine the best fit for your side hustle’s requirements.
AI accounting tools streamline financial management by automating tasks such as expense tracking and categorization.
Selecting the right freelance accounting software is crucial as it significantly reduces time spent on administrative tasks, allowing you to redirect your focus towards your passion. By automating processes through the aforementioned tools, you can position your side hustle for success and rest assured that your finances are well-managed.
