Accountant Archive

Benefits Of Hiring Contractor Accountants

Contractor accountants are specialist accountants who provide their service to the self-employed in particular, contractors or freelance workers. These are the workers that are contracted either short-term for a specific job or intermittently over the years for periods of time when a company is particularly busy. Alternatively, they may be contracted simply to carry out a specific and specialist task.

Benefits of using contractor accountantsnote

They provide more services

Contract accountants offer far more than just a simple bookkeeping service. They will if you ask them to, deal with taxman for you. This includes filing tax returns and dealing with any correspondence from your taxman.

They offer advice

Also, they offer advice on how to avoid paying more tax than you need to. They will ensure that you comply fully with the law, while still earning a good living from what you do. This advice can include how to word a contract and structure it so that you avoid appearing to be a regular employee of the firms that you work for on a relatively regular basis. Having this kind of advice is invaluable because it will stop you falling foul of the IR 35 rules. It ensures that you appear to the taxman as what you genuinely are i.e. a temporary employee.

They assist in decision-making

Also, experienced accountancy firms will also help you to decide whether or not you should operate under an umbrella company. This is not suitable for every freelancer, but for those that it is suitable for an umbrella company can provide a secure way to get paid and keep your tax bill to an absolute minimum.

Finding contractor accountants

An onlinmouse and pen e search for the term ‘contract accountants’ will bring you back a fairly extensive list of accountants who claim to offer these specialist accounting services. However, it is important to shop around and look for the most experienced accountant you can find. Look for those that explain the rules to you and do not encourage you to try to game the tax system. If your accountant gives you advice that leads to you dodging tax, it is you, not them that will be prosecuted.

Before hiring contractor accountants, it is always advisable to enquire about the price, cost or charge of the accountant and what are included in it. Usually, the prices vary from firms to firms but the things included are; annual accounts, payroll, VAT returns, tax returns, self-assessment, references and so on. After making a survey of a few companies, one should come to a conclusion. You must have a knowledge of your requirements and whether they are included in the price list.

Questions You Should Ask When Hiring a CPA

A Certified Public Accountant (CPA) designation represents that your accountant has gone through specialized training and passed extensive education and evaluation requirements. However, not all CPAs are equivalent.

Accountancy holding paperTo assist you make this judgment call, begin by asking these few questions:

1. Have you fulfilled all the requirements to be considered a Licensed Public Accountant in my state?

The initial step when vetting a CPA is to figure out whether or not they are a licensed CPA in your state. You can address this question by yourself through your state’s professional licenses website. You can find a list of CPA institutions by state online. Make certain your Certified Public Accountant is up to date with their requirements and are not suspended or inactive.

2. How many years experience have you had as a CPA?

The road to being a Certified Public Accountant is marked by years of education and training, so even a freshly minted Certified Public Accountant won’t be completely inexperienced. But it’s still best to select a Certified Public Accountant who has significant hands-on experience as a practicing Certified Public Accountant.

3. What is your financial know-how in?

There are a number of Certified Public Accountant areas of expertise, including Guarantee and Attestation, calculator and pencilCorporate Funding, Corporate Governance, Estate Planning, Financial Accounting, Financial Evaluation, Financial Planning, Earnings Tax and auditing. Also Management Consulting, Performance Consulting, Tax Preparation, and Planning, or Venture Capitalism. Ensure your Certified Public Accountant is well-versed in the area where you require the most help.
4. What are your hours and availability? What type of contingency exists if I am audited?

Make certain they can meet with you when you are available (i.e. do they only operate during business hours when you are also at work? Are lunch meetings feasible?). You’ll want to make sure that they’ll be responsible in the case that you are audited. Otherwise, you’ll need to reverse engineer their work in order to respond to all the IRS’ concerns.

These few questions need just to get you started. Select your CPA and make sure that you feel comfortable and confident in their experience and expertise.

Tips on Choosing a Tax Preparation Service

Most towns and cities boast dozens of tax services, so choosing the best one for you can take a little research. Unless you have a routine bookkeeper, you may just know the big names on the block. These suggestions can help you pick the right tax preparation work service for your individual or business earnings taxes.


A man doing his taxes using a calculator and pencil on a white backgroundAccessibility

Lots of smaller sized tax services are only open from January through April. If you just need assistance with your individual earnings taxes, those may be fine for you. Bear in mind, however, that if you’re contacted later about your returns or if you need their support during an audit, you may run out of luck if you select a tax service that draws in its shingle after April 15.


You need a skilled, qualified tax preparer to do your taxes. While you don’t need to be a CPA to do individual income taxes, a qualified public accountant has the education and experience to make certain that you make the most of all the deductions and exemptions to which you are entitled. In addition, a Certified Public Accountant in a year-round accounting company will keep up on the latest tax laws and modifications to the tax code to guarantee that your returns are finished accurately and to your advantage.


A conveniently located office can be a benefit if you plan to have a face to face in the accounting professional’s office. Consider where the office is and how difficult or easy it is to get there if you have to drop off and pick up records and returns.

Track record

Ask around to learn the reputation of the tax services you’re thinking about and make an effort to look into their credentials. Do the staff members have CPA training and accreditation? Do they offer tax services for earnings tax period, or do they also provide other accounting and bookkeeping services? Are they registered with the regional Better Business Bureau, and if so, what is their track record and score?


Some tax preparation services provide warranties of precision. When you’re deciding among tax services, make certain you know what they will do if their error leads to fines, or if you are audited by the IRS. Those elements can help you decide in between 2 or more tax prep work services with similar track records, accessibility, and pricing.


The cost of preparing income tax return varies extensively from one tax service to the next. It’s unlawful for a tax Tax 02prep work service to base its costs on the amount of refund they get for you. Some accounting professional offices charge by the hour. Others have a basic schedule of fees based upon the intricacy of the income tax return and types that should be filled out. Still others offer a custom-made quote for each. If your tax circumstance is extremely complex, some tax services could have difficulty offering you a specific cost prior to them doing a more extensive interview with you. However, they should have the ability to give you a rough estimate of exactly what it will cost to have your taxes prepared.

While it’s appealing to jump at the first tax service advertisement you see, avoid that temptation. Unless your scenario is very complicated, take the time to have a look at several tax services and pick the one that it the best suited for your circumstance.

Accountants, In house Vs Outsourced

Before we go into the specific options readily available to an entrepreneur, let’s take a moment to acknowledge the value of accounting.

There are usually three principal factors anybody goes through to begin a company:

a) Generate earnings

b) Expand

c) Grow employment opportunities and income through taxes and responsibilities as a way to give back to society

Accountancy using calculatorRegardless of the inspiration, companies are helped by accounting. Accounting reveals to the business owner where their business stands in relation to its goals. It likewise shows the business owner what steps are required to accomplish goals more quickly and efficiently.

But how are these things accomplished through accounting?

a) Making sure that every deal is recorded in a prompt way.

b) Ensuring each transaction is put under the proper accounting heading.

c)Protecting the prompt creation and updating of the cash flow statement, Debtors Aging report, Funds flow statement, the balance sheet and the profit and loss account for the owner. This guarantees corrective actions can be taken if needed.

Because of the crucial nature of accounting in relationship to running a business, it’s not surprising that that entrepreneurs throughout the world regard accountants as vital. This is the main reason the CFO stands side-by-side with the CEO within a business.

Provided the significance of accounting and the accounting professionals who supply the service, let us turn our focus on comprehending the distinction between an accountant who is internal and one who is contracted out.

Accountancy smilingAn internal accounting professional refers to an accounting professional who has been hired as a full-time employee. This person handles the financial resources of the company and keeps the books precise and up-to-date. Internal accountants provide these benefits:

(i) The internal employee works in the same location as the business. They, for that reason, understand the specifics of this business and the dynamics of the environment better.

(ii) An in-house accounting professional could be asked to provide help in other areas besides accounting whenever the requirement arises.

An accounting professional who is outsourced is not employed by the business. Instead, they have a contract with the business restricting their duties to providing accounting services. They might lie within the same country, or they could live outside the country where the business itself is located. The outsourced accountant can provide these advantages:

(i) An outsourced accounting firm is staffed with experts. These accounting professionals supply immeasurable assistance to companies.

(ii) Unlike the in-house staff member who has to take time off or go on holiday, service providers providing outsourced help have adequate staff members to cover business accounts when the regular expert needs to be out on leave.

(iii) The majority of outsourced accounting firms service customers in various countries. Hence, they have accounting professionals available around the clock. A business can not anticipate an internal accounting professional to be accessible 24/7.