When Is It Time to Hire an Accountant?
Tax season is upon us! That means it’s likely that freelancers are receiving 1099s from clients and trying to figure out how much money they made last year. It’s also possible that freelancers are ripping their hair out as they try to figure it all out themselves. If this is you, it may be time to hire an accountant.
Many freelancers are reluctant to hire an accountant because they aren’t cheap. In my honest opinion, accountants can pay for themselves in the amount of time and money they save you over time. Here are just some the ways you’ll know it’s time to hire and accountant.
If You Can’t Figure It Out On Your Own Anymore
When you’re in the beginning stages of your business and not making much money it’s easier to stay organized, fire up TurboTax and do what you need to do.
However – as I’m sure many of you have noticed – the more your business grows the more complicated it gets.
The more money you make the harder it is to keep track of all of it.
The more clients you take on the harder it becomes to keep track of who owes you money.
The more streams of income you add to your business the more complicated the taxes.
The more expenses you have – such as credit card processing and travel expenses – the more complicated your deductions.
Sure, you could go to a tax preparer in March to get it all sorted out. But a tax preparer isn’t going to help you figure out estimated taxes and plan your business finances for the year.
An accountant, on the other hand, can help you stay better organized and make better financial decisions for your business.
When You Want to Make More Money
I recently had a coaching client ask me if I’m making the amount of money I was expecting to make at this stage in my business. I responded with “I’m now making the amount of money I wanted to make two years ago, but I wasn’t ready for it back then.”
It may sound counterintuitive at first, but one of the steps I had to take toward finally making more money was to hire an accountant. The reality was I didn’t yet have the systems in place to manage the kind of money I wanted to make. Additionally, I was spending way too much time on my own accounting instead of actually working.
After I hired my accountant, it was only a couple of months before my business revenue started to steadily increase. By setting up the proper systems and using my newfound time wisely, I was able to allow more money to come in.
If You’re Over It
Another surefure sign that it’s time to hire an accountant is if you’re over trying to manage all the money on your own. I didn’t particularly enjoy writing up invoices, reconciling bank statements and having to do everything myself – so I hired an accountant to do most of it for me.
The reality is he’s much better at that stuff than I am, and I now have peace of mind knowing that my money and tax situation is being handled.
If you think it’s finally time for you to hire an accountant, Due can help you find one via our cloud accounting system. The service is available in 120 countries and it is programmed to help you find the best accountants closest to you.