Being an entrepreneur single-handedly taking care of your own business, one of the questions you may need to address right away is: “Do I need an accountant for my self-employed business?” It’s a huge step and may cost you, so it’s normal to think this through.

The problem lies when you find yourself going through the common excuses over and over again: “It’s simple. I can do it on my own”, “I can multitask”, or “I will hire one when I can afford it already.” They may be valid reasons not to hire an accountant, but they can rob you of the time that you can use to manage your company. Chances are, you will miss great opportunities that will help drive your business in a more profitable direction if you are not willing to support its needs.

Successful businesses thrive with careful planning and wise investments, no matter the size. Aside from products and services, an accountant for a self-employed business near you is a good investment too. Here’s why.

What Does Self-Employment Mean? A Quick Overview

Being self-employed means that you take care of your entire business on your own – creative, marketing, product or service development, tax filing, and accounting. Self-employed individuals usually do not need an Employee Identification Number (EIN). However, the Business Identification Number (BIN) is a must-have.

If you learned to make a profit from your hobbies and occasionally perform minimal side jobs, you are not necessarily self-employed. To be self-employed is to do something regularly as a primary source of income. For some self-employed individuals, their business is nothing more than a means to earn. But there are those like you who start small with the goal of growing it eventually.

With that in mind, you need to be on top of everything, which may not be possible if you are a one-man company. All aspects of your business need the attention it needs so you can go miles in your chosen industry. The accounting part is painstaking and could take your time away from creative and marketing work.

Do I Need an Accountant for Self-Employed Business?

Being the sole owner and worker of your small business, the tasks can weigh down on you mostly as your clients are slowly multiplying. You want to keep a high level of service or products to keep the momentum. At the same time, you need to do proper accounting to have an idea if your business is earning and how much you are making. You also need to maintain an accurate record of the tax requirements cash flow.

It’s a lot of work, and you will realize along the way that you need an accountant who can take care of the finances. A self-employed tax accountant may at first seem like a cost to you, but really it’s an investment worth taking for your business and your future.

4 Major Reasons Why You Need an Accounting Expert

“Do I need an accountant for my self-employed business?” The answer depends on how much you know about accounting or how much work you can do. Can you multi-task and be efficient? Are you accounting savvy? Are you able to manage your time effectively while switching from one task to another?

Accounting alone demands a great deal of time as your books need to be updated and accurate. Otherwise, a small mistake might cost you more. Here are a few reasons why you need an accountant for your self-employed business.

1. An Accountant for Self-Employed Business Near You Gives You the Most Valuable Element to Grow Your Business: TIME

The pile of paperwork can easily distract you from your primary functions as a self-employed individual. However, you cannot just set aside the business requirements no matter how tedious they can be. In growing a business, time is of the essence. Focusing on one aspect may also mean letting another suffer. It would be hard to concentrate on product or service development and accounting at the same time. Perhaps you can multitask, but you can only do so much.

At this point, seeking help from a CPA will help redirect your focus on duties that generate profit. As you take care of your business, an accountant will handle the financial paperwork such as invoices, legal documents, licensing, and taxes.

Hiring an accountant would change the way you do business. An accountant for a self-employed business taking care of your books would give you more time to establish your company, expand your client base, and nurture business relationships.

2. Do I Need an Accountant for a Self-Employed Business? Yes, for ACCURACY

Having accurate financial records is one compelling reason to hire an accountant. Accuracy has several advantages:

• You get a precise view of your income, earnings, and tax obligations.
• Having fewer financial mistakes will mean accurate tax filing and tax deductions. Any errors can cause a delay in filing your taxes resulting in penalties or an audit. If you hire a self-employed tax accountant near you, you can avoid such hassles.
• You can easily assess the overall financial health of your business, therefore allowing you to make smart business decisions.
• An accountant can also make projections based on your books, thus helping you decide which areas to improve.

3. Every Business – Big or Small – Needs a TAX EXPERT

One of the things that small, medium and large businesses have in common is tax. There is a wide variety of taxes to be paid and tax deductions, and all of them prove challenging to monitor and calculate. The rates and the laws covering these taxes may also differ from one state to another. You may need to constantly check for updates as they can change under certain circumstances (e.g., the COVID pandemic).

Each year, businesses are obligated to file an income tax return and other forms appropriate for their business entity before the due date. Otherwise, late filing incurs a penalty. This is one thing you will need to worry about, and could get in the way of your business because it’s a delicate task.

If you have a self-employed tax accountant near you, you can rest assured that your taxes will be taken care of and filed on time.

4. Accountants Aren’t Just Clerks, They Are Also FINANCIAL ADVISORS

The responsibility of accountants goes beyond entering new financial information. They can also help you with monitoring the cash flow and budgeting. Often, you need someone to tell you if making a huge purchase is the right thing to do or how to negotiate the prices. With an accountant near you, it’s easier to decide on the spot and make short and long-term plans.

Do I Need an Accountant for Self-Employed Business? If You Aim for Success, You Sure Do!

Many entrepreneurs like you find it challenging to decide whether an accountant is necessary. You may often ask: “Do I need an accountant for a self-employed business?” Start-ups especially are having a hard time making the call because it may mean additional expenses. But knowing all the advantages of having an accountant for self-employed businesses also means huge gains.

It will be hard to succeed in business if you’re not willing to take the chance with an accountant who will collaborate with you in growing your company. It’s always a smart decision to trust someone who has in-depth knowledge about finances, taxes, and competition.

Steven J. Wick & Associates P.C. is an accounting specialist who has helped several small businesses grow. As financial experts, we keep your books updated and accurate. We apply custom-tailored solutions to analyze your company’s financial health and make realistic projections. We can also assist you with your tax requirements.

If you are a self-employed business with visions of success, our accounting knowledge will add value to your company’s growth. Steven J. Wick & Associates, P.C. offers various accounting and tax services, payroll services, and business consultations. Let us know how we can help you. Give us a call today!