Why do you need a tax accountant once you start freelancing?
It goes beyond wanting to be financially independent. Just because you’re a freelancer, it doesn’t mean your tax obligations stop.
There’s no exemption just because you stopped being employed. As long as you’re earning, it’s your civic duty to pay your taxes.
Unfortunately, not everyone can do their taxes on their own. While it’s wise to understand the whole process of paying taxes, it doesn’t mean you have to do everything on your own.
You can rely on a tax accountant to help you with your income tax payment.
Benefits of Having a Tax Accountant
It’s very important to pay income tax as a freelancer. I’ve always felt proud of myself for ticking off this obligation.
After all, as a freelancer, nobody would know if you pay your taxes or not.
But I believe in practicing integrity in all areas of my life. I know that fulfilling this obligation, it gives my career positive vibes. It lets me hold my head up high because I’m doing my duty to the country.
I truly believe it has blessed my career over the years.
I remember a client of mine saying that we shouldn’t shy away from paying taxes. The fact that you’re paying taxes means you’re earning. That’s something to be thankful for.
But do you really need an accountant to do this?
While you can do this on your own, why force it?
Here are some of the benefits that you’ll get if you work with a tax accountant.
We hire accountants for their expertise. If you studied basic taxation in college, you should have an idea about how complicated it can be. This is why you need a Certified Public Accountant for this.
They passed the rigorous licensure exam. They’re practiced for a long time. They can give you expert advice to ensure that you’re paying your tax obligations without wasting too much money on them.
Lower Tax Liability
The amount of tax that you pay will depend on how much you make as a freelancer. But there are conditions that we can meet to help lower the tax payments. And no, that doesn’t mean you have to under-declare your income.
I would strongly advise against it.
What you can do is ask a tax accountant about expenses that you can declare. There are entries in your financial expenses that can lower your tax payments.
If you try to do your taxes on your own, be prepared to spend a long time doing it. If you don’t, there’s a high chance that you might make a mistake and be penalized for it.
Tax accountants can take this off your plate so you can continue working and earning money.
They can also help file your tax payments. They can do this together with the other clients that they file. So it won’t be too time-consuming for them.
But if you do it on your own, you might waste one whole day filing your taxes. You can easily avoid this by working with a professional. A tax accountant can save you valuable time by doing all the paperwork themselves.
Tips When Hiring a Tax Accountant
Now that you understand how beneficial it is to hire a tax accountant, allow me to give you tips to help you find and hire the right expert to help with your tax payments.
Find Them Through Referrals
Ask your family and friends if they know of tax accountants that you can hire. Focus on those who manage their businesses. They’re surely working with an accountant or accounting firm.
If you can hire someone who works with freelancers, that’s even better.
Look for Good Credentials
When you find a prospective accountant, double-check their credentials. You want to work with someone who’s a CPA or Certified Public Accountant.
Some accountants practice but don’t hold a CPS. Don’t be shy to ask for credentials. You want to make sure you’re working with someone you can trust.
You can check the validity of a Certified Public Accountant by clicking on this link https://online1.prc.gov.ph/Verification
Inquire About Their Experience
There’s no better teacher than experience. So if you’re working with an experienced accountant, that’ll work in your favor.
Tax accountants who’ve been practicing for a long time mean they’re aware of the changes in the tax system over the years. They can explain it to you better and they’ll know the best option for you to pay your taxes.
Hiring a tax accountant will cost you professional fees. But it’s a necessary expense if you want to work with integrity. Engaging with the right professional will help you save time and guarantee tax compliance.
Don’t make things complicated for yourself. Filing taxes is one burden that I’m pretty sure you want to take off your shoulders.