Previously, corporate infrastructure was needed to perform accounting work. It included things like archive storage space for documents, expensive software, dedicated servers, etc. Business owners had to provide significant human resources for data entry, reporting, and journaling. With modern software, one freelance accountant can do the entire job independently.
Who is a freelance accountant?
A freelance accountant is a self-starter who does not sign a contract with an accounting firm or other type of business. Instead, he contacts directly with his portfolio clients, offering a sizable range of services from payroll to financial background checks.
Most often, independent bookkeepers are used by small businesses that do not have the capital to hire full-time professionals and individuals with complex income structures who need help with tax returns. It means most experts are ready to tailor services to suit clients’ needs.
Types of freelance accountants and their responsibilities
Although freelancers do not work in specialized financial institutions, they may target a specific audience and offer various services. Professionals can specialize in different accounting tasks, including the following options:
- Business: such bookkeepers focus on corporate customers rather than individuals. It includes working with payrolls and filing tax returns. Independent accountants interacting with the company may also prepare and deliver invoices.
- Personal: these professionals deal with individual finance and help clients prepare for retirement, file a tax return, or make a profitable investment. Personal accountants can create individual budgets and financial plans.
- Audit: freelance auditors perform financial reviews. They study economic data and evaluate the correctness of accounting and the quality of audit records. Experts can offer options to increase the efficiency of the company’s financial processes.
- Expenses: freelance bookkeepers offer consulting services. They evaluate the profits and losses of the company and develop ideas to increase the business’s profitability. These accountants understand the company processes, including production, delivery, payroll, etc.
Independent bookkeepers work on a contract basis and may interact with several clients at the same time. They have successfully established themselves in large companies with many employees and small firms. Freelance qualifications include a bachelor’s degree in economics, finance or accounting.
Benefits of working with freelancers
The selection and hiring of new employees is a long and laborious procedure. You must allocate funds to hire and train them first. Even if it seems like a one-time expense, HR is something you will have to deal with all the time. Hiring freelancers on platforms like Paro allows you not to think about such problems, concentrating on work. Consider other advantages of such a solution:
- Capital savings: you only have to pay for the specialist’s work hours. Сompany can save on work benefits, including vacation pay, pensions, and more.
- Possibility to complete short-term tasks quickly: all firms have faced the situation when they need to quickly do a large amount of work, e.g., at the end or the beginning of the year. Collaboration with freelancers allows you to scale your staff quickly.
Small firms face many challenges, adding to them that such companies are vulnerable to accounting fraud due to the low proportion of trained staff. Hiring freelancers is the smartest choice for small businesses considering all the benefits listed above.
How to hire a true professional?
Hiring a freelance accountant can be a daunting task. The procedure is simplified if you know the required services and working hours. After receiving responses from candidates, check the biographies and experience of the professionals you are interested in. Below we have collected some essential points that will help you find specialists in 2023:
- Aptitude test: ask if accountants have a history of success or are new to the industry. Do they understand all the intricacies of working with your platform?
- Professionalism assessment: how many candidates have adapted their resumes to meet the requirements of your project? Or did they just insert standard phrases into the text? Assess their communication skills.
- Learning from experience: ensure the specialists have the necessary qualifications. They must include this information in their profile. What is the educational background of the applicants? When did they complete their studies? Are they members of professional associations? What companies have the experts collaborated with before?
- Reading reviews: check candidate testimonials from employers they have previously worked with. Are most of the reviews positive?
When you start your business, you are doing what you love and not wasting time on paperwork. However, accounting and firm development are inextricably linked. Capital control is essential for the correct filing of reports and the prevention of fines. However, in most cases, firms do not need a full-time CPA. In this case, it is better to save capital and use the services of a freelance accountant.
