Not so long ago, a dream job was defined as full-time work with decent pay and reasonable hours, preferably at the same company for the rest of one’s life. These days, however, more and more people are taking their careers into their own hands by striking out on their own as freelancers. Statistics show that 36% of the country’s workforce is part of the so-called “gig economy,” and together contributed some $1.28 trillion to the American economy.
If you’re a freelancer in Nashville, you no doubt love the freedom of setting your own work hours and choosing which clients to work for. But you’re probably much less enthusiastic about the administrative part of the job, including sorting out your financial documents and filings. Luckily, this is where a professional accounting firm can help. Here are just a few reasons why freelancers should hire a CPA:
Because Time Is Gold
Whether you bill by the hour or by project, this simple truth remains: the hours you spend number crunching is time you could spend servicing clients. In the world of freelancing, time is quite literally money. So let your accountant sort out your tax filings and accounts receivables, while you go do the work you really love and excel at.
Because You Can Save Money
The great thing about being a freelancer is that many of your purchases count as business-related expenses and are thus tax exempt—if you remember to file them as such. The truth, however, is that many freelancers forget to do this and end up paying more taxes than necessary. Your accountant can review your finances and help you find exemptions you didn’t even know about. Indeed, the money you pay for a CPA’s services can save you hundreds or thousands of dollars in return.
Because Mistakes Can Be Costly
You wouldn’t hire an amateur to reroof your home, right? After all, any mistakes in installation can prove to be costly. The same goes for your financial filings. If you tick the wrong boxes or fail to submit a necessary document, you can end up paying more than you need to or be slapped with a fine. That’s why you should leave the nitty-gritty of your business finances to experts and no one else.
Because They’re Advisors
More than providing administrative assistance, a good CPA offers sound business advice. They will flag you if your cash outflow is projected to outpace cash inflow. They will point out areas where you might be overspending. They will notify you of tax amendments that might impact your income. If you are what you spend, then who better to counsel you on money than your accountant?
A study from Wonolo shows that by 2027, about half the population will be part of the gig economy. So know that you’re far from being alone in this wonderful journey of freelancing.
Likewise, you don’t need to take on the responsibility of keeping your finances in order by yourself. As you can see, there are many benefits to hiring an accountant, from saving you money to helping your business flourish. If you need to talk to an experienced account, get in touch with Evan Hutcheson, CPA.
Why Freelancers Should Hire an Accountant Throughout the Year, Due.com
Why Every Freelance Writer Needs an Accountant on Your Side, TheWriteLife.com