Self employed individuals have a lot of things to worry about — from making sure they're billing their clients correctly, to tracking their own taxes and dealing with payroll. While it's tempting to try to do everything yourself, there are some tasks that are best left to the professionals. After all, the less time you spend on clerical tasks, the more time you have to spend on client acquisition and growing your business. If you're self-employed, you may find that hiring an accountant is exactly what you need.
Hiring an accountant is not a requirement for self employed individuals, but it is certainly something to consider. An accountant can help you keep track of your finances, prepare and file your taxes, offer advice on how to run your business more efficiently, and even save you money at the end of the year. Potentially a lot of money.
If you're still not sure whether or not hiring an accountant is the right decision for you, consider speaking to one for a consultation. Many CPAs offer free or discounted consultations to self employed individuals, so it's worth exploring your options. It never hurts to have an expert on your side.
What's the difference between an accountant and a CPA?
Typically, an accountant is a professional with a degree in accounting who helps individuals or businesses manage their finances. A CPA, or Certified Public Accountant, is a type of accountant who has passed a rigorous exam and met all the requirements set forth by their state's Board of Accountancy. CPAs are licensed to provide a wide range of financial services, including tax preparation, auditing, and financial consulting.
Benefits of hiring a CPA for self-employed individuals
While self-employed individuals are not required to have a CPA, there are several benefits of working with one, including:
- Tax Preparation: A CPA can help you prepare your taxes, ensuring that you take advantage of all the deductions and credits you're eligible for. They are especially helpful at making sure you deduct absolutely everything that you can. This can save you A LOT of money.
- Financial Planning: A CPA can offer advice on how to best manage your finances and grow your business. They can also provide professional, educated advice on how to plan for your retirement. This is especially important for self-employed individuals, as they may not have a retirement plan set up for them the way that traditional employment does.
- Audit Protection: If you're ever audited by the IRS, a CPA can represent you and ensure that the process goes smoothly. With a licensed professional on your side, you have the help and protection that could potentially save you thousands of dollars. The IRS doesn’t mess around, and having a CPA help you through the arduous process of an audit can help you sleep easier at night, knowing that your finances are in good hands.
- Fiduciary assurance: A CPA is held to a standard by a professional governing body that requires them to perform their work in a fiduciary manner, meaning they are required to put the interest of their clients above all else.
Expert Financial and Accounting Services for Self-Employed Individuals
Self-Employed individuals and small business owners face financial hurdles that traditionally employed people don’t have to worry about. Chris Haro and his team at Haro CPA specialize in tax and accounting services for self-employed individuals — to make their lives easier and provide them with more time to focus on the things that matter.