Do You Have an Accountant?

Once in a while I’ll get an email from a fellow freelancer, either from a reader here or an online acquaintance elsewhere, who has a question about taxes. My answer to most will generally be, “I don’t know; I have an accountant.”

I once wrote an article on the subject of freelancers and tax deductions, and I actually had to do some research. By research, I mean not only reading around but also calling my accountant to make sure I wasn’t whipping out bogus information.

When it comes to things like organization and numbers, I’m a mess. Although I was a proud winner of the 6th Grade Math Olympiad team, and I got A’s in high school Algebra, all those years in advanced math classes did nothing for my adult life. I can balance a checkbook. I can add from a spreadsheet. That is where my skills end.

I had someone today ask me what an accountant can do for a freelancer, and is hiring one worth the money.

Is the price of an accountant worth it?

Whether it’s worth it will depend on the freelancer, her budget, and the price of her accountant. My time is generally billed out in excess of $100 an hour for the hours I spend working. Although this doesn’t include taxes, the few hundred bucks I spend on my accountant each year is certainly worth it to me. I’d spend days doing what he does in an hour or two.

What can an accountant do for a freelancer?

Here’s what mine does:

1. Prepare tax filings.
2. Help with estimated tax payments.
3. Take advantage of the right deductions.

If you file as a business, an accountant is a big plus. But even if you don’t, my opinion is that an accountant is a wise investment for any freelancer earning enough money to have to pay taxes.

Do you have an accountant, or do you do everything yourself? Would you say it’s worth it?