How to Find an Accountant that Specializes in Freelances?

by John Smith Accounting & Bookkeeping Manager

Know how freelancers can find a perfect accountant for their business

 

Preparing for your income tax return on your own is an intricate task. If you are a freelancer, it can cause a lot of stress. But finding an accountant to cater to your requirements can help. If you don’t know how to hire an accountant, here are the know-how for you.

Knowing the type of accountant you need

You have to choose from the following two types of professionals:

Certified Public Accountants (CPAs): CPAs pass qualifying state exams and hold specific education and training. As a freelancer, you should look for a CPA experienced with individual tax returns.

Enrolled Agents: These agents are experts licensed by the Internal Revenue Service via an exam or after working for the government agency for five years. Taxes are the only concern of enrolled agents, therefore, unlike a CPA dealing with your tax returns will be a simple task them. Another fact to consider is that Enrolled Agents cost lesser than CPAs.

 

Read Also: QuickBooks ProAdvisor Program, Membership, Training & Certification (2019 Update)

Ask your fellow freelancers for suggestions

 

That’s how most of the freelancers find right accountants – they ask people for recommendations. If your fellow freelancers are using the services of any CPA or EA, and if the accountants are good, you can also take their services. Furthermore, you can find the reviews of the at Yelp, American Institute of Certified Public Accountants, National Association of Enrolled Agents and a few other websites. Your local Chamber of Commerce is another place you can find a few references.

Know the accountant’s Credentials

If you have a few options, you can review the accountants’ background through the IRS Office of Enrollment, BBB, or organizations and online websites that publish the reviews of CPAs and EAs. You should also consider checking the PTIN (Preparer Tax Identification Number), as that’s a government requirement for accountants.

Hire someone experienced

If you offer freelancing services to a bank, advertisement agency or any other specific industry, look for an accountant with experience in the same industry. A tax preparer with knowledge of your work can easily find hidden deductions and help you avoid difficulties.

Find an accountant who works for clients with your income level

Many CPAs and EAs are more comfortable serving clients with high incomes. These tax preparers may not be used to deal with freelancers with lower incomes and under their requirements. You can discuss your income level and expectations with your accountant in the beginning so that you can be served appropriately.

Interview top prospects

Meet your top prospect to know their charges and help them understand you. Continue if you two mutually agree to work together.  Bring along the previous year’s tax return as that may be a great help for your accountant. Your accountant, post studying the previous year’s ITR, can tell you what to expect from current year’s tax preparations.

We all know that tax preparations take time and more often than not they can be complicated. It’s even more consuming for freelancers. QuickBooks Self Employed can be a great help and make the process simple and less time consuming to a great extent. But hiring a right accountant is the best thing to do as you wouldn’t like to lose any part of your return or get audited.

 

Read Also: How to get QuickBooks certification and become certified?

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Created on Jan 20th 2020 01:32. Viewed 302 times.

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