Both freelancers and contractors who are considering signing up for an accountancy service should think seriously before committing.
There are plenty of options out there. Many agencies will claim to offer you fantastic services, but in all likelihood, they probably have a broad range of clients who each have varying needs. An accountant that specialises in clients in non-permanent employment on the other hand has more room to offer a personalised service. They can also better understand your needs through experience.
Here are three reasons to seek out a specialist for all your contractor accounting needs.
Modern day contractors need modern day accountants
A vast amount of modern day contractors are working in digital industries across the country. If this describes you then you will already know the importance of staying up to date with industry tech.This also applies to accountants.
Contractor accountants 3 Wise Bears recommend the use of cloud technology so that contractors or freelancers can make quick business decisions and have access to real-time information. Software such as Xero and FreeAgent can allow clients all-hours access to account and finance information.
These are vital tools for making quick fire decisions, which can be essential to success as an independent contractor. When working hours do not fit the traditional 9-5 model, having instant access to information can save both time and money. It also saves time sifting through spreadsheets and simplifies the process for you.
The time tracking element of this kind of software can also help you deduce the profitability of your time.
Accountants should help you maximise your take home pay
A specialist accountant is more likely to be able to maximise your take home pay. This is often true even if they charge a higher rate than a more all-encompassing accountant.
Familiarity with contracting will allow an accountant to understand your individual requirements and the tax law surrounding your job role. They will have intimate knowledge with the right compliance steps to take so that you don’t lose out on cash.
Alongside maximising your take home pay this allows accountants to be able to give valuable tailored advice on a number of aspects of your finances.
They should also have an awareness of the hidden costs of freelancing or contracting. This can come in the form of travel expenses, tax, insurance, equipment needs or even time off.
A specialist can act as more than just an accountant
A contractor accountant could play a role more similar to a financial manager if you find the right one. Accountants are taking on more active positions within companies or with clients due to technological advances and demand.
So even if you are paying a higher rate for your accountant, they may become better value for money.
However it’s important to do your research. Many companies may claim to specialise in contractor accounting when really they’re just looking for any clients they can get their hands on. Avoid high street accountancy firms and look out for up to date technology in order to avoid those making false claims.