Why Should Self-Employed Individuals Choose a CPA for Their Accounting and Tax Needs?

When it comes to starting your own business or joining the ranks of the self-employed, accounting is one of the most critical aspects operating your business. It's real easy, when you are first starting out, to get wrapped up in choosing a business name or designing your business cards. Unfortunately, without a sound understanding of the numbers, you may find yourself losing that business and working for another employer.

There are a number of reasons why you should choose a New York CPA for freelancers for your accounting and tax needs, especially when you are self-employed. For all practical purposes, when you are self-employed, you are what is known as an independent contractor. Additionally, when you are classified as such, there are different accounting and tax implications that you need to be aware of. Herein lays the value of hiring a New York CPA when you are self-employed.

Why you should hire a CPA if you are self-employed

Being self-employed or an independent contractor is far different from being a business owner. Unlike the business owner who does not have to be so concerned with the daily operations or be as hands-on with that business, the self-employed individual must be totally aware of the day-to-day operations of their business. They have to utilize a strict hands-on approach if they have any hope of surviving in their endeavors.

The most significant reason for hiring a New York CPA when you are self-employed is the tax responsibilities that you face. When you are self-employed, there are certain tax obligations that you have to meet compared to when you are working as an employee. A qualified CPA is well aware of these differences and can assist you in staying in the good graces of your local, state, and federal tax authorities.

The bottom line is that CPA's are not the number crunching individuals that standard accountants and bookkeepers tend to be. They understand accounting and tax concepts that only apply to the self-employed individual and speak their language. In a sense, CPA's are business advisors and financial strategists that can help you with business or personal accounting and tax issues.

Choosing the right CPA when you are self-employed

You will quickly discover many New York CPAs for freelancers are available when starting your search for one, so it is imperative that before you select one that you know exactly what you need them to do for you. If you are searching for New York CPA for the self-employed, consider the following suggestions:

Ask for recommendations initially - your local area Chamber of Commerce as well as fellow business owners are excellent sources of recommendations.

Interview several New York City CPA's - you should interview 3 to 6 and find out if the services they offer are conducive to your employment category. Inquiring about their years of experience and seeing their credentials are also important.

They need to work around your schedule - being able to contact a CPA when you need them is critical so they need to work with your schedule, not the other way around.

Compare rates - if at all possible, ask for that CPA's rate sheet so you can compare all of them at once. Additionally, you need to find out which CPA provides you with the most services for your money.

Jonathan Medows, CPA, MBA is the Managing Member of MEDOWS CPA, PLLC, a boutique New York CPA firm serving the needs of individuals, freelancers, self employed individuals & small businesses. To see how he can help you reduce your tax liability and keep you in tax compliance please visit his website: Medowscpa.com