2020 has seen an increasing number of us switch from employed roles to self-employed roles. The coronavirus and Covid-19 pandemic has wrought havoc with many of our careers and financial security. As governments have implemented rules to minimize contact between people and slow the spread of the virus, many businesses have been unable to operate, resulting in issues ranging from job loss to reduced income. Maybe the company you worked for collapsed. Perhaps you were made redundant. You might be being offered reduced working hours or a reduced salary. In situations like this, more and more of us have started accepting self-employed work or self-employed projects to help ourselves get by.
Of course, if you’re going to work on a self employed basis, you need to understand how to do your taxes. When you’re employed, your employer often deals with your taxes and other legal financial obligations on your behalf, deducting your tax from each paycheck and paying it for you. However, when you become self employed, deciding to work on freelance or contracted projects, you do need to start taking care of your own financial records and taxes. This, of course, can be pretty confusing if it’s something you haven’t dealt with before. Plus, getting it wrong can land you in serious trouble. This is why the majority of people decide to use the services of an accountant. Here’s some more information that will help you to get this right!
What Is an Accountant?
An accountant or a small business CPA accountant is a qualified professional whose job it is to deal with your financial records and help you to file your taxes. They may also be able to give you advice in regards to other financial areas of running your business. Of course, it’s important to be picky when choosing your accountant. The first person to come along might not always be the best person for you or your business. Instead, browse around and make sure you find someone that ticks all of your boxes.
Finding Your First Accountant
Here are a few things you should take into consideration when looking for an accountant.
- Qualifications – generally speaking, accountants have to be professionally qualified to officially deal with your accounts. This is sometimes a legal requirement. At the end of the day, you have a legal obligation to pay your taxes properly and accurately. So, remember that your accountant needs to be recognised by the law. The qualifications they need will differ depending on where you’re based, so look up local requirements.
- Experience – the more experience your accountant has, the better. Sure, highly experienced accountants may cost a little more, but generally speaking, it’s worth it!
So, there you have it – the basics on finding an accountant. As you can see, using an accountant’s services could significantly benefit you and make your life easier. Hopefully, some of the information we’ve provided will help you to get the process started!