Last Updated on: 22nd November 2023, 08:02 pm
There are a lot of factors to consider when you decide to strike out on your freelancing path. One of the most important things to think about before you start is choosing an accountant.
The right accountant will manage your money so that you have the time to focus on your work. You’ll need to balance the cost with your requirements and specific earning potential. Here are some of the key things to keep in mind when selecting your new accountant.
Budget
When first starting out on your freelancing journey, you should consider what your budget will be for your accountant’s services. Decide on a budget before you start so that you can narrow down your options and keep your costs down.
If you are just starting out your budget may change over time. It is best to start small, particularly if you are unsure of how your future earnings will look.
Trust
You will be entrusting your accountant with your hard-earned money so trust is a huge factor in the selection process.
Make sure that you choose an accountant with the correct accreditation and one that is registered with a professional body like The Institute of Chartered Accountants in England and Wales (ICAEW).
An unqualified accountant may offer better rates, but this comes with risks that may end up more trouble than the initial savings are worth. It is always better to opt for an accountant with the correct qualifications.
Software
As with most businesses the kind of software your accountant uses can be vital to ensuring you get value for money with their services. If your prospective accountant still prefers to work manually this could be an indicator that efficiency might not be their priority. While it by no means would mean they couldn’t still give you good service, it is always best to try to maximise efficiency.
Find out what kind of software an accountant uses and make sure that it is a reliable one. Look out for practices that use professional software for accountants. Using a cutting edge service like BTC Software can be a great indicator that your accountant has their client’s best interests at the heart of their business. Having the right tools is key to doing the job right. Good software will enable your accountant to work efficiently and ultimately save you money and time.
Experience
There are many different types of accountants out there. You will want to find one that has experience and expertise in accounting for freelancers. This way your accountant will be up to date on legislation and regulations relevant to you and will keep your accounts in the best possible shape.
It is best to decide what kind of services you require from your accountant before you start your search. How involved they are with your business is entirely up to you. Make sure they provide the services you want, such as yearly expenses, tax returns, or self-assessments. Once you have decided what you want your accountant to do for you, you can then start your search with your requirements for their qualifications and expertise in mind.
Reviews
If in doubt have a look at what people are saying about your chosen accountant online. If there isn’t much to be found online about an accountant this might mean they are a relative newcomer to the profession. While this isn’t necessarily a negative, it is worth double-checking their qualifications and references before you go ahead.
Also checking for recommendations from trusted sources and online forums can be a great way to find a reliable, established freelancer accountant.
