After being furloughed due to the consequences of the pandemic, many people have decided to become freelancers or self-employed workers. While this might seem like a great idea and a good alternative to working for a company, there are many factors which need to be in place to ensure your success. Many self-employed workers have no knowledge or experience in accounting and cash-flow is crucial to ensure the survival of any business, regardless of its size and total revenue. Despite an increase in orders and total revenue, self-employed workers may not realise that they are losing money and this is where an experienced accounting firm can help.
With that in mind, we are going to take a look at some reasons why self-employed workers should outsource their accounting needs:
Save Time- accounting can be time-consuming and for self-employed professionals, time is a very precious asset. They handle everything on their own and often need to work within a very tight schedule to meet the demands of their clients. Expensive accounting software can be helpful, but freelancers can still make mistakes due their lack of knowledge. Accounting mistakes must be corrected quickly to avoid tax issues and other financial consequences.
Keep Track Of Payments- late payments are a common issue in the freelancing sector. A professional accountant can help keep track of payments and inform self-employed workers when a payment from a client is due. It is important to know how much clients owe to avoid some payments slipping through the cracks and remaining uncollected.
Better Motivation- many corporate employees have been dreaming about starting their own business, but it’s by no means smooth sailing. Financial reports provided by experienced accountants can help self-employed workers forecast future growth making it easier to set realistic goals, based on their current performance and growth.
Improved Cashflow- self-employed workers often don’t have time to track their cash flow regularly, causing them to overspend on certain cost components. A professional accountant can provide weekly or monthly reports to give freelancers an accurate overview of their current cashflow. This can make it easier to find areas where you can reduce costs.
Easier Tax Reporting- many self-employed workers find themselves pulling their hair out when it’s time to report their taxes. If they haven’t kept accurate and timely accounting records, it can be a very stressful experience. An experienced accountant will be a great help when another tax season comes around. They provide accurate records and it’s easier to perform calculations before paying tax.
Contact Shield Accountancy
To learn more, contact Shield Accountancy today and speak with a business accounting professional who can answer any questions you might have.
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