10 Reasons it Makes Sense to Hire an Accountant as a Freelancer or Contractor

Although many freelancers or small contractors decide to handle their finances themselves, there is a growing trend towards hiring an accountant to handle the monetary side of their business for them. There are a number of reasons for this which are highlighted below.

Reason #1: Free Up Your Time
One of the most common reasons for hiring an accountant to handle the financial side of operations is that it frees up the freelancer’s or contractor’s time. This allows them to concentrate on other elements of their work such as putting proposals together or undertaking work.

Reason #2: Make The Most of Tax Benefits
The way the taxation system in the UK works is very complicated and without knowing the system in depth, it can be easy to miss out on certain tax benefits that are available to freelancers or contractors who are married or have dependants, as well as other issues. By hiring an accountant, you can ensure that you are gaining benefits that are available to you.

Reason #3: Keep Up To Date With Changing Rules/Procedures
Taxation is quite complicated and it isn’t helped by the fact that the rules and procedures regularly change within the UK. By hiring an accountant, you can make sure that your finances are being done in the correct way at all times and save yourself money on any penalties that may result in you doing things incorrectly due to changes in the law.

Ensure the correct forms are filled in at the correct time
Ensure the correct forms are filled in at the correct time

Reason #4: Ensure Financial Deadlines are Met
The deadlines for submission of tax returns and other financial matters are rigid so by hiring an accountant, you can make sure that deadlines are always met and no penalties are incurred.

Reason #5: Make Sure You’re Paying The Right Amount of Tax
For freelancers and contractors, tax is usually paid at the end of the financial year and the amount will depend on how much money you have made. It can be difficult to determine how much money to save throughout the year in order to have enough to pay your tax bill. However a good accountant will be able to advise you on this to ensure you don’t get any nasty surprises at the end of the year. To learn more about available services visit this link from Accounts Net.

It can be difficult to know how much to set aside for tax
It can be difficult to know how much to set aside for tax

Reason #6: Someone Else to Chase Debtors
One of the most frustrating issues for freelancers or contractors are clients or customers who don’t pay their bills. It can be very time consuming to keep track of payments and chase people for payment who have not paid. By hiring an accountant, this is taken out of your hands. Most accountants can also offer help with court cases etc in order to ensure you get the money that is owed to you.

Reason #7: Advice on Saving and Investments
Accountants can offer a wealth of information on the best ways to handle your money whether saving or investing. An accountant is likely to be able to advise you on how to make the most of ISAs and other ways of ensuring that your money is making the best possible amount of interest.

Reason #8: Other Financial Advice
Accountants can also offer other financial advice such as how to get a loan or mortgage based on the fluctuating income levels of freelancers. They may also be able to help you with repayment plans for credit cards and other debts too, ensuring a smoother cash flow throughout the year.

Reason #9: Peace of Mind
Another popular reason to hire an accountant is that it gives you peace of mind that everything is being done correctly and on time, leaving you stress-free to get on with your work.

Reason #10: Networking
Finally, by having an accountant, you can actually increase your network of business contacts. Often accountants deal with a wide range of individuals or businesses and sometimes these people will ask the accountant if they know anyone who offers x, y or z. The accountant can then put people in touch with other freelancers to widen their business network and maybe even generate revenue.

So know you have ten good reasons why you should hire an accountant, it’s time to go out there and find one.

 

Image Credits: agrilifetoday and Tax Credits