Are you a freelancer? Stressing about how to hire an accountant to help with your tax return? You are definitely not alone. Freelancers can find hiring an accountant one of their biggest challenges. The team at Siragusa have put together 5 important questions to ask yourself when looking for an accountant.
1: Do Freelancers Even Need an Accountant?
Of course, you’re not required to hire an accountant to prepare your tax return. Some people may even prefer to do their own taxes. However, for those freelancers who don’t want to or can’t do their own tax return, a tax accountant is an important resource. A tax accountant for freelancers can work through complex forms and ensure you remain tax compliant. They are also experts at knowing what business expenses you can legally deduct and help improve your freelance business finances.
2: What’s the Difference Between a Tax Accountant and a CPA?
A CPA is an accountant, but an accountant is not always a CPA. A CPA, or Certified Public Accountant, is a professional who has met the specific education and experience requirements, and have passed their CPA exam. However, a tax accountant for freelancers doesn’t need to be a CPA to prepare your taxes. But a CPA can give you a little more peace of mind.
3: Where Can I Find a Tax Accountant for Freelancers?
The best way to find the right accountant for you is to look local and ask for referrals from other freelancers. Knowing others in your field have worked with your accountant can give you a lot of peace of mind. It means they know how to handle your particular industry and its tax requirements.
A local tax accountant is also recommended, as meeting someone in person can make you feel more comfortable. It is also easier to discuss particular issues or concerns you have, in person, than relaying back and worth in writing. Check in with your fellow freelancers and scope out your local tax accountants, like Siragusa, to find the right accountant for you.
4: What Questions Should You Ask Before Hiring a Tax Accountant
Before you hire a tax accountant, there are some questions that you should ask, whether by email or over the phone. These include:
Do You Have Experience Working with Freelancers?
Freelancers often have income from many different sources. They also often have unusual business expenses. As a result, your accountant needs to know how to properly categorise these things and know what you can legally claim as an expense.
Does Your Accountant Work in Paper Form, Electronically, or Both?
If you work remotely, it is likely you prefer things to be done electronically. It is important to see how comfortable your accountant is with electronic filing and digital communication. Or do you, or your accountant, prefer in-person communication and paper filing? You need to work out what works best for you and find a tax accountant that matches.
How Do They Protect Your Information?
Your accountant should have secure connections, such as a secure site that you have a unique login. If dealing in paper, your accountant should have secure areas to lock up your personal information.
Do They Use Accounting Software?
It is helpful if your chosen accountant uses software, like Quickbooks or Xero. This way you can both easily log into your accounts. Your accountant can also pull any reports needed. While it is not a big deal if you use different software, it is easier in the long run.
Who Prepares My Tax Return?
There are some accountants who outsource their work to contractors. If you like to know exactly who you will be dealing with, check if your accountant outsources or not!
Final Tips for Freelancers Looking for an Accountant
It is important that you don’t wait until the last minute to find an accountant. When tax time hits, accountants get slammed. The earlier you get your taxes done, the better. If you wait, like so many others, you may find your accountant is fully booked and unable to help.
Further, accountants can do more than just tax returns. While some do only work on tax returns, others offer bookkeeping services through out the year. Others even off business advice and coaching.
Tax time is stressful for everyone, but especially for freelancers. Make sure you get yourself set up early, to ensure you have the best service possible. The team at Siragusa are skilled tax accountants, and are excited to work with you! Contact the team today to find out more!