Important Things Freelancers Should Know Before Hiring an Accountant
by Agro Accounting CPA Accounting for Artists, Freelancers & Creative Com
Working as a freelancer sounds interesting and easy. Undoubtedly it’s interesting, but it is not as easy as it seems. Quitting a 9-5 job and deciding to work as a freelancer requires courage and confidence. You have to start from scratch and take baby steps to reach the heights of success. In all this hustle, managing your accounts (books) and taxes for your freelance business, along with other work responsibilities, may feel like a burden at times. So to make it work as a freelancer, you can consider hiring an accountant for freelancers that can guide you with their expertise and experience. But before you hire one, you must be familiar with a few key points, as listed below.
1. Difference Between a CPA and an Accountant
A Certified Public Accountant or CPA is an accountant, but not all accountants are CPAs. A CPA is licensed by one of the 50 states of the U.S. Also, CPAs have to pass the CPA exam and meet certain education and work experience criteria. This means that a CPA is better qualified than an accountant. Freelancers should understand these major differences among accounting professionals before hiring one.
2. Benefits of Hiring an Accounting Professional
Before hiring an accounting professional for freelancers, you must know how they can help you.
● A freelancer has various income sources, and an accountant can help track them easily.
● Understanding tax laws is complex because they are updated and changed regularly. But accountants are familiar with the changing tax laws.
● Hiring a professional will help you save time and money.
To know more about tax-related tasks, you can go through the freelancer’s guide to taxes.
3. Questions Freelancers Should Ask Before Hiring an Accountant
Before you appoint an accountant, either speak on the phone with them or meet in person to ask the following questions:
● Do you have any experience working with freelancers?
● How do you safeguard financial details?
● What services do you provide?
● Do you use any accounting software?
● How much do you charge, and are there any hidden fees?
4. Ways to Check an Accountant’s Credentials
After the discussion, if you find an accountant suitable and compatible to your working style, check the accountant’s credentials before making a final decision.
● Check the CPA’s name online through the state’s accountancy board to see if their license is still active
● Search them through this tool on the IRS website
● Directly ask the CPA to provide client references
The Bottom Line
Hiring affordable accounting for freelancer workers can help take some stress off of you. From managing day-to-day accounting tasks to providing valuable advice, an accountant can make your work hassle-free. So, find a qualified, honest and skilled accountant who can help accelerate the growth of your business. Also, keep the key points mentioned above in mind while looking for an accountant for your freelance endeavors.
Created on May 3rd 2022 08:25. Viewed 61 times.