OT: As a freelancer, should I get an accountant?

[Steve Roberts]

I like Quickbooks.
If you don’t like keeping books, get a bookkeeper.
An accountant may not save you money compared to his/her fee — it depends on how you run your business and how much money you make.

But there’s a COW Business forum — it would be better to post this there.

Steve

[David Johnson]

Personally, I think getting an accountant was the smartest thing I ever did. A good accontant can save you a ton by properly deducting things you might not think of like “business use of home”, portions of utility bills, vehicles, etc. Sure you can do that yourself, but PROPERLY is the key word there. I find that tax law is complicated enough and changes frequently enough to be worth hiring a pro.

[Nightdesigns]

YES get one! I was in your situation last year, made a boat load of money untaxed. I’ve always had an accountant and she took care of me again this year. I only ended up owing about $1700 in taxes compared to the $10k I had estimated. I do my own stuff on the side, but still made a fair amount of money. I use quicken and print out all the categories and bring them along with me. I just go down the list, she tells me if i can or cannot deduct this and that, and how much. I deducated everything from rent, to power, to cell phones, to equipment purchsaes, to my car/service/toll roads.

Total cost of accountant, $100, total saved, $9000

[Joey Korenman]

Thanks guys! Would you guys recommend I find my own accountant, or just go to H&R block. You’re saying your accountant only costs $100? If that’s the cost then I’m definitely getting one. I have a whole file full of receipts I’ve been saving, so hopefully I can deduct a ton.

joey

[Serge Hamad]

Go get one for your own sake!
You are young and just starting a business so keep your energy acquiring new clients and being creative and believe an old dog, getting new clients is creative enough!
When looking for an accountant make sure that you get one that knows your branch. Asking colleagues may help to get the right guy and sleep better at least each April 15th!

Good luck.

Salut.
Serge

[Rich Rubasch]

Before you buy any software go and find your accountant…then buy whatever they use. I do all of my invoice generating and recording of payables, but the accountant comes in about 3 or 4 times a year to “straighten things out.” My accountant charges around $80 per hour, so for the year I usually end up paying him between $700 and $1000. that includes my corporate tax form, my personal taxes and any and all other work throughout the year.

But you should also get tow work downloading the many PDF files from the Federal and State Department of Revenue to learn as much as you can about your tax burden. Don’t get behind on your taxes!

Rich Rubasch
Tilt Media

[Tom J]

Ok so one more thing to add to this. :>)

When you are a freelancer it’s one thing. But if you have a DBA and you are making the claims as a “business” you have to make sure that your accountant understands your intentions. I can’t remember what the heck it is called at the moment (momentary brain fart) – poof! there goes another… IRS Tax code calls it I believe the “Hobby clause” or something along those lines.

The IRS in the US allows one to conduct business but you must begin to make profit after I believe it is now what – 3 years. And after that they evaluate your practice, income, losses, etc. And if you are still spending or “deducting” expenses that exceed your income after the 3 years, they consider your business a “HOBBY”. Plus certain expenses like computers or other systems that depreciate in value are typically submitted over the course of 5 years, not all at once. A good accountant that is willing to work for you and not for themselves will know the ins and outs, especially if you can find one that specializes in Entertainment, or Production.

So just something to think about when you make deductions. Because the “hobby” clause in the IRS Tax code can potentially flag you for auditing later on.

Sorry I can’t recall the title but I’m sure a search on any good business site or even the IRS site for “Sole Proprietorship”, freelance, hobby, will come up with good results.

HTH,
Tom