Being self-employed offers many perks, including the freedom to set your own hours, write your own policies, and choose your own customers. However, the never-pleasant process of filing and paying your taxes is even more onerous when you're a self-employed worker. With foresight, research and proper planning, however, you can make sure that your finances are all in order when it comes time to pay the tax man.

Keep Meticulous Records

If you've ever worked for someone else, you were likely provided with helpful W-2 form at the start of each year, which detailed your earnings, exemptions and taxes paid. As a self-employed worker, you won't enjoy that luxury. You'll need to independently record your earnings and expenses so that you or your accountant can calculate your taxes accurately. Save your receipts and invest in good business software to keep yourself on track.

Budget for Taxes Throughout the Year

Taxes can be a major expense for the self-employed. Unlike a regular employee who works for someone else, you won't have your taxes automatically deducted from your paychecks and paid throughout the year. Instead, you'll need pay your taxes on an annual or quarterly basis. If you don't budget appropriately, you may suddenly find yourself facing a tax bill for thousands of dollars. Failing to pay your taxes on time can result in hefty financial penalties, so don't take any risks with your tax obligations. As you bring in money, place your taxes in a dedicated account so that you will always have enough set aside.

Remember Self-Employment Tax

As a self-employed worker, you'll need to remember to pay your self-employment tax in addition to your regular income taxes. The self-employment tax consists of your Social Security and Medicare taxes; these are normally withheld from a regular employee's check, with a portion of the tax paid by the worker's employer. You'll be responsible for the entirety of those taxes, however, so don't forget to include those taxes in your budget calculations. As of 2017, the self-employment tax sits at 15.3%, although future laws may change that rate. The full rate only applies to the portion of your earnings that are subject to Social Security; any earnings beyond that level will only need to pay the Medicare portion of the self-employment tax, which is currently 2.9%.

Take Advantage of Deductions

Self-employed workers have access to many more deductions than the average worker. For example, if a section of your home is used solely as a workspace, you can deduct a portion of your housing expenses from your earnings. Set aside that space in your home, and make sure that you do dedicate that space solely to your work; in case of an audit, you'll need to prove that you don't use the space for personal use.

Materials and supplies that you purchase for your work can also be deducted from your earnings. This isn't limited to physical supplies; if you subscribe to any trade publications to keep up on industry trends or take classes to maintain or improve your skills, those expenses can also be deducted.

Your self-employment taxes are partially deductible, as are a portion of your utility payments. Other financial expenses that can be deducted include interest paid on business loans and payments made to a self-employed retirement plan.

Travel, meals and entertainment costs can also be deducted as expenses, so long as the costs were related to your work. For example, if you traveled to a trade show, took a client to lunch, and treated the client to a concert, some of those expenses would count as a deduction. If you own a car and use it to support your work, you can also deduct a portion of your automotive expenses.

Don't let taxes scare you away from working for yourself. Keep detailed records and consult with tax experts to make sure that you're paying your taxes correctly. With proper planning and financial discipline, you can keep the pain of paying your taxes to a minimum.