Five Reasons Why Freelancers Should Hire an Accountant
As a freelancer, you are forced to wear so many different hats in one day: being an employee, an employer, a bookkeeper and so much more, and quite frankly, wearing so many hats can be stressful. Here are five reasons why a freelancer should at least relieve themselves of financial stress and hire an accountant:
To Help You Make Money
Hiring an accountant can easily help you make more money. This is because an accountant can help you determine how much money your family needs to survive or how much money you need to budget each and every month. By doing so, you now have enough information to know exactly how much money you need to charge for your services in order to avoid financial stress.
To Help You Save Money
Just as an accountant can help you make money, he or she can also help you save money. This is because an accountant can see where you spend money the wrong way and can help you put an end to it by showing you how to implement better money saving tactics.
To Eliminate Stress
Financial stress is one of the most common causes of freelancer burn out. If you’re a freelancer looking to eliminate some stress, it may be in your best interest to hire an accountant even if it is just to eliminate the stress of accounting, payroll and bookkeeping.
To Help You Track Your Expenses
Depending on what type of freelancer you are, you may have to worry about payroll, bookkeeping, invoicing and a host of other accounting tasks. In the midst of doing these jobs you also have to continue to do the freelance work you are hired to do. If you are a freelancer who wants to simply stay in your own lane and do the work you have been hired to do.
To Help You Monitor Growth
When you are in the middle of the hustle and bustle of the freelance world, you don’t always have time to monitor your failures or your growth. An accountant can help you not only identify growth but he or she can also help you identify areas of improvement.
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How Your CPA Can Help You Pay Your Freelance Taxes
As a freelancer, it can be exciting to constantly collect checks from your clients, especially if your client isn’t taking taxes out for you. But thought it may be exciting, it can also be stressful at the same time, because you know at some point you’re going to have to pay back those taxes that you didn’t pay earlier in the year. Knowing that you’re always going to owe taxes can be intimidating; however, if you have a CPA on your side, this process can become much more manageable.
Here are just a couple of ways your CPA can help you pay for your freelance taxes:
Quarterly Installments
The IRS has a payment system which is customized for freelancers who are looking to make quarterly installments to help ease the burden of owing back taxes. This not only keeps you from having to pay large sums of the money at the end of the year, but it also helps you stay on top of the tax elephant that’s always in the room.
Savings
Another way you can save for taxes at the end of each year is by putting a particular amount of money into your savings account each time you get paid. Doing this will not only teach you the importance of saving, but it will also teach you that not all of the money that comes to you is able to be spent.
Are you a freelancer who has no idea how to stay afloat during tax season because of all the money you owe back? There’s always an accountant on our team who is ready to help. The key to successful freelancing is making sure you understand the rights you have.
Have any other tips? Feel free to leave them in the comments below.
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