The Ultimate Guide to Hiring a Personal Accountant

Whether you’re a solo entrepreneur or growing a remote team, having someone who knows what they’re doing unearned revenue can make a huge difference. In fact, it can be the difference between a business that runs smoothly and one that’s constantly putting out financial fires. While a CPA can offer in-depth financial planning and tax advice, it can be pricey and more than some freelancers need. A bookkeeper manages your everyday business finances—recording transactions, monitoring income and expenses, and keeping the financial side of your business organized.

• Ask for credentials, do a background search and compare fees to find the right tax preparer near you.
• This translates to almost 131,000 job openings each year in that time.
• I’ve never used an accountant before, been using tax software until now.
• If you’re based in Arizona, you might consider working with a Phoenix accountant to ensure you’re leveraging every deduction and staying compliant with state-specific tax laws.
• Forty-seven states (plus Washington, DC), Puerto Rico, and Guam participate in CPA Verify, an online repository of information about licensed CPAs and public accounting firms.

Turbotax vs. Accountant: When Should You Hire a CPA?

The term “accountant” is sometimes used as a catch-all phrase to refer to any professional who deals with financial transactions or taxes, but there are different types of accountants. For instance, there are bookkeepers, accountants, and Certified Public Accountants (CPAs), to name a few, and they all have different skill sets and varying limits on what they can and can’t do. Choosing the right professional could help you achieve financial security, whether you’re running a business or investing money for your future. •   Hiring a personal accountant can be beneficial for managing finances, especially for entrepreneurs and individuals with complex tax situations. EAs are federally licensed tax practitioners who are authorized to advise, represent, and prepare tax returns for individuals and businesses.

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• That way you’ll get to work with a more seasoned professional.
• An accountant might find savings for someone with an income in the $50,000 range.
• Individuals tend to pay a fixed fee, while corporations usually pay hourly rates since they work with their tax preparers throughout the year.
• Some people think that hiring a personal accountant is a waste of money.
• Ask if you can meet with a CPA, an EA, or a senior tax preparer if you decide to use one of these services.

An accountant can help you wrangle all of the receipts and reports to create a successful tax return. If you have a lot of financial issues to handle, a personal accountant can help you manage them. For businesses with more Record Keeping for Small Business than one employee, an accountant with small business expertise can help with everything from determining the right business structure to filing taxes.

Where to look for the right accountant for your small business

Remember that you, not the accountant, are ultimately responsible for the accuracy of the information included on your tax return. Accountants that prepare taxes or work as financial planners are required provide written statements regarding their privacy policies to all clients. Don’t hesitate to call the firm or the accountant to find out whether they have the expertise to handle your taxes if there’s anything unusual about your situation.

Many online tax preparers now offer live assistance, so if you do have a question while you’re filing, you can get help in real time. Even after the filing season is over and your tax return is filed, the best tax preparers will take your call, respond to your email, or welcome you for a visit. Every small business owner gets to the point where they worry about the tax implications of their business, as well as having to handle accounting and other obligations. Trying to juggle these tasks single-handedly can lead to a lot of inefficiency and chaos. For this reason, many opt to hire a certified public accountant (CPA) who can handle these tasks on the behalf of your business.

That means half of accountants made more than that, and half made less. So yes, the interview is your chance to learn more about them—but it’s also their hire a personal accountant chance to learn more about you. That means being organized, respectful of their time, and asking the right questions goes a long way. And now comes the part that can feel a little overwhelming—sifting through all those applications to find the ones actually worth your time.

• People who see their income gradually increase but aren’t seeing a rise in profits might need some help in these areas.
• Therefore, it’s better to save both time and money by hiring a personal accountant.
• The records are used in a variety of ways and clearly present important financial information to the stakeholders of a business.
• Remote People focuses on talent across the Americas, which helps with overlap in work hours and experience with U.S.-based business needs.

Accountants will analyze your finances to look for areas of improvement, finding ways to boost your cash flow. Accountants are also up to speed on tax laws, allowing them to properly assess your tax situation. They can identify potential tax deductions, and ensure you’re in tax compliance with the IRS. A good accountant will help you have a smoother, more productive tax season. But handling finances can become overwhelming in no time — even the tiniest financial recordkeeping mistakes can result in a headache.

How to Avoid Common Tax Traps in Your Business

Many accounting software programs integrate with document management systems, making it easy to share records with your accountant. A secure, organized system supports compliance and empowers accountants to provide informed guidance. But as the situation gains complexity, tax software might miss out on some savings. K1s, small business concerns, foreign income and real estate bought and sold are all items that can complicate a taxpayer’s financial profile. When these factors enter the picture, an accountant might be able to see and do things simple software might pass over.