More and more people are choosing to work as freelancers instead of taking up a full-time job. That is a shift from people choosing to work full-time at the same company throughout their lives. Bear in mind that freelancing contributes more than a trillion dollars to the economy. Freelancing allows you to pick the company you want to work for and the type of work you want to do.
Working as a freelancer allows you to set your hours and choose the people you will work for. However, dealing with the administrative part of freelancing, such as filing and going through financial documents, can be challenging. Fortunately, you can hire a professional accounting firm to assist you. Here are the reasons you should hire a CPA.
Time is Money
As a freelancer, your time is valuable because you bill your clients by the hour. If you spend a large portion of that time trying to understand your accounts, you will lose money. Getting a CPA allows you to concentrate on your work, and they can figure out your account receivables and file your taxes. That will ensure that you make more money and your accounts are done correctly.
Saves You Money
There are many purchases that you make while freelancing that you can file as business expenses. Business expenses are tax-exempt, but if you do not know that, you may end up paying more tax than you ought to. A CPA has the appropriate training and experience to help you identify different business expenses and file your taxes correctly. That ensures you pay less in taxes, which saves you money.
To Avoid Making Mistakes
If you make a mistake during financial filing, it can cost you a lot of money. There are very many details on your tax forms that you may not understand. Secondly, if you do not provide the correct financial documents, you could end up paying hefty fines. A CPA understands every aspect of tax filing and will not make any mistakes. You can rest assured that your taxes are filed correctly and your money is safe.
Give Excellent Advice
Apart from dealing with administrative issues in your freelancing business, CPAs can also give you good advice. They will caution you when your cash outflow is more than your cash inflow or when you overspend. Bear in mind that spending more money than you have can have adverse effects on your income and your ability to keep working. CPAs can help you make a sound financial plan to ensure that you save money for a rainy day.
By 2027 more than half the American population will have joined the gig economy, according to a Wonolo study. That is a sign that you are not alone in your journey as a freelancer.
That said, it is essential to ensure that you hire a trained professional to help you manage your finances. They will help you save money and also keep your business running. If you are looking for a CPA, contact us today.
If you are a freelancer and would like to talk about your accounting needs…we’d love to talk with you. Call us at: (480) 558 4400 or leave us a quick message on our contact form