Why Freelancers Need an Accountant for Tax Preparation

 When you start freelancing, it comes with a range of challenges.  Before – it used to be your manager or the company who took care of everything.  Now, you are the one who is responsible for managing all of your business activities.  When you work for a firm, you simply ask for a W-4 Form, fill in the details, and are done with taxes.  But, as a freelancer, it is not that simple or easy.  You need to learn what portion of your home’s rent and utility expenses you can write off, for example, and what expenses you are not eligible to deduct.  Thus, you need an expert accountant for freelance workers to guide you through your taxes.

3 reasons why freelancers need an accountant for tax preparation:

1. They do not know how to prepare taxes

Freelancers may be highly skilled in their area(s) of work, but they might not be skilled in doing tax calculations, navigating through tax laws, and deciding the right form for filing taxes.  Thus, they need an expert accountant for accurate tax preparation for freelance workers.  An expert accountant knows how to prepare taxes in order to maximize tax savings.

2. They do not have the time to prepare taxes

You can prepare taxes on your own if you are well-aware of the tax forms, qualified business expenses, state tax rules, special tax exemptions for your industry, and other such tax know-hows.  If you do not know these rules, then it might take you days (or more!) to learn them and to prepare taxes on your own.  Not every freelancer has the time to prepare taxes on their own.

3. It is simply not worth preparing taxes on one’s own

If you charge $40 per hour and spend 20 hours doing your taxes on your own, then it would cost you $800 in lost work opportunity.  At the same time, a CPA can prepare your taxes for $300.  Thus, choosing a CPA is an affordable accounting option for freelance workers!

If you are looking for income tax services for freelancers, then get in touch with Agro Accounting CPA for tax preparation for freelance workers.

5 Reasons Why You Need an Accountant for Freelancers in 2023

 There are many reasons to hire a professional accountant, especially from Agro Accounting CPA, for your income taxes.  They provide affordable accounting for freelancers.  The major one (the “biggie”) is that they are professionals in following rules and handling tax regulations.

Reasons you need an accountant for freelancers:

1. Familiar with tax laws

Tax laws are complex because of the federal, state, and/or local bodies, as each has different rules.

2. You're a freelancer

Being self-employed, you own or rent an office, have an Internet and phone plan; car mileage, and new equipment purchases.  A strong accountant can help a freelancer save a significant amount of money on taxes by wielding these spending's to your advantage.

3. Math is not for everyone

Taxes are entirely related to basic math and to organization skills.  A good accountant will know how to work through all this and render precise financial results to you.

4. You have several income sources

Having several income sources is great for your bank account, but it makes calculating taxes more complicated.  In addition, you may be eligible for extra tax savings that you are unaware of.

5. You will save time

Preparing profit and loss statements may take time, but an accountant knows how to do them fairly quickly.

Final word:

You can stay in contact with an accountant from Agro Accounting CPA all year to resolve all sorts of financial queries and complexities!

A Few Ways Accountants Help Business Owners Make the Right Business Decisions

There are several advantages to hiring an accountant for your business, and some provide affordable accounting for freelancers.  First, accountants understand what the numbers on financial statements represent and what problems they could be indicating. Hiring an accountant for your business will improve your ability to make decisions for it because, once again, accountants can see beyond the numbers on financial statements. 

Below are 6 ways accountants can help your business:

1. Start-Up Process

One of the ways accountants help business owners is by utilizing their financial knowledge to help set the business up for success.  For example, an accountant can help you select the right business structure.  In addition, an accountant will establish correct accounting processes that are organized and in compliance with government regulations.

2. Growth

Collaborating with an accountant can help a business flourish.  When companies are experiencing growth or trying to achieve new heights, accountants can help by providing business managers insight into cash flow management, inventory management, and tax preparation for entrepreneurs.  They can also prepare forecasts and budgets to help guide a business and ensure it is in line with the goals already established for it.  In addition, your accountant will ensure a smooth transition when you are going through any mergers, acquisitions, or business sales.

3. Operations

Accountants help businesses with regular operations by offering monthly preparation and analysis of financial statements.  The analysis will help managers make well-strategized decisions based on the most current data.  Business accountants can also help by overseeing payroll and estimating annual tax payments for their clients.

4. Regulatory & Reporting Compliance

Business accountants make sure that business owners are following government regulations properly.  In addition, they make sure that important deadlines are met— such as for tax filings.  Business accountants can also help a company during the audit process by offering the auditor accurate company data.  The presence of an accountant from the beginning ensures this process will go smoothly because the data will be organized.

5. External Financial Relationships

Businesses usually collaborate with many different financial organizations.  Accountants can manage these relationships and handle the work that firms must do for tax compliance, banks, or investors.

6. Avoid accounting mistakes

Accountants help businesses prevent financial mistakes that could cost them a lot of money.  An accountant will prevent small and large mistakes—from overdrafts to bank account reconciliations, to missing a tax deadline that could result in huge penalties.

Conclusion

Having an accountant for your business team will give you valuable insight that will help drive good business decisions.  Delegating this work to a part-time accountant will give managers and owners more time to focus on their business's operations. Agro Accounting CPA is a cost-effective solution for business accounting services.  The firm renders outsourced accounting on an hourly, onsite or remote, and part-time basis.  To learn more about the benefits of having a part-time accountant, connect with Agro Accounting CPA.