Why You Should Use an Accountant as a Freelancer
Working as a freelancer certainly comes with its perks. You're in charge of your own schedule, which means you don't need to worry about working time debates. You also have the chance to boost your income at any time, and you can work from home. Depending on your area of skill, you might decide that you want to handle your accounts yourself. However, there are a few reasons why you need to use an accountant instead.
Avoiding Fines
Getting your taxes wrong or failing to file certain taxes can result in hefty fines. You may make the innocent mistake of trying to write off certain costs. Or, you might become so busy that you miss an important tax deadline. As accountants are experts in such areas, they can stop you from falling victim to both mistakes. Avoiding fines ensures you don't eat into your hard-earned profits. As a result, you'll have more money to invest back into your business and watch your freelancing venture grow.
Proving Income
If your freelancing work is your sole income, there may be a time when you need to prove how much you've earned. Unfortunately, if you're verifying your accounts alone, this can close you off from certain financial products. For example, if you want to buy a property then your mortgage provider might want to see evidence from an accountant. Or, if you're looking for a loan so you can grow your business, a bank might want solid proof of your earning capabilities. Accountants have the qualifications and registrations needed to verify such information. As a result, you should have an easier time proving your income when the time comes.
Making Next Moves
There may come a time when working as a freelancer is no longer the right status for you. If your client list starts to grow and you're outsourcing your work to others, you might need to look into forming a business. When you have an accountant who fully understands the financial ins and outs of your activities, they can assist with that business formation. They'll help you do so in a way that benefits you best financially. They'll also ensure you make those moves in ways that are legal and compliant with your state's tax laws.
Having an accountant to hand makes perfect sense when it comes to financial planning and meeting your tax obligations. As your business grows, you'll feel happy you chose someone with financial acumen to support you. For more information, contact an accountant near you.
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