Things to Consider When Choosing an Accountant for Freelancers
Remember the days when you worked full time and even though you were earning plenty of money, professional contentment wasn’t the emotion you felt? Now that you have finally decided to follow your passion and become the freelancer you always wanted to be, although you may be struggling with managing your money, you are happy with what you are doing. But, managing money is a concern.
Money cannot buy happiness but it can bring plenty of other things that can make you happy. Employing the services of a good accountant is one of the smartest things you can do as a freelancer. Avoid plunging into your own accounting if you don’t know much about the field, or if you don’t have a strong financial background; there is a plethora of financial and legal problems that can arise. No one wants to get audited by the tax authority for making silly mistakes. Nonetheless, before you throw yourself into your search, let’s talk about when you should hire an accountant.
When should you hire an accountant?
- To help you write a business plan
When you are writing a business plan, it’s a good idea to involve an accountant. They can provide you with their expertise in utilizing accounting software, work out your financial projections and explain to you other reports in your business plan. Creating a realistic and professional business plan that is most likely to succeed becomes hassle-free with an accountant on your side, and you will have benefited from their financial knowledge and advice right from the start.
- To help with the legal structure (only if a firm or a company)
The fact that every business has a varied legal structure should not come as a surprise. There are different types of company structures that are determined by several factors. Businesses can be S corporations, limited liability companies, partnerships and sole proprietorship, to name a few. An accountant will be able to help you decide which structure is most suited for your firm.
- To help with business finances
As a freelancer, you are bound to have too much on your plate and with that, if managing your finances also comes at you like a rock, there is every chance your business will collapse. At this point, it’s a good idea to start to look for the best accounting consultancy firm for artists. You might be in a position where your business has started to grow to the point that you are losing control of who owes you money and how much. An accountant will be able to help you get back on track.
Now that you know how beneficial accountants can be for your freelancing business, let’s look at how to choose the best accountant for you. Here are some tips to help you select an accountant.
Things to consider when choosing an accountant
- Time in business
You might think this bullet point is unfair and practical at the same time. When choosing an accountant, make sure they have enough experience to not make mistakes with your finances. The number of years that an accountant has been in business can have an impact on your success or failure. You know you’ve chosen the perfect accountant if they have plenty of experience working with small businesses, and understand their specific challenges. Choosing a younger accountant with less experience might be cheaper but could add more risk than you need to take.
Seeking references can be a bonus when searching for the perfect accountant. They are most likely to give you a good idea of how well that accountant can help businesses similar to yours. Look for accountants that have things in common with your business, especially when it comes to size, niche markets, and business structures. For freelancers, the better the references, the better the accountant, and the references will prove his reliability.
- Find out how responsive they are to inquiries
There’s nothing worse than placing your finances in someone’s hands only to find out that they don’t respond or return your calls as quickly as you’d like. Before choosing your accountant, ask around and find out how responsive they are, and about their turnaround time for producing and filing reports.
- Be clear about rates
The last thing you want from an accountant is to get a surprise when the bill comes. Make sure that you understand their fee structure and get an estimate of the monthly costs for the services you need before you employ them. Choose an accountant that won’t burn a hole in your pocket.
For your freelance business to flourish it’s important to hire a professional accountant and our tips will help you in choosing the accountant that’s right for you.
Queries you may have searching before finding this post:
choosing an cpa certified accountant
cost to hire a cpa ( To know cost Contact www.agroaccounting.com)
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online accountants for contractors and freelancers
Well, thanks for reading.
Have a great day ahead!!