Becoming a freelance business accountant is a great way to make money. It offers a lot of freedom and control, which are two things that many people crave in their professional lives.
In addition, freelance business accounting can be a very lucrative career choice. There are a few things you need to do to prepare yourself for this field, but once you have the proper training and experience, you will be able to find work easily.
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What is a Freelance Business Accountant?
A freelance business accountant is a financial expert who works with small businesses, creating and implementing their accounting systems. This can be a great career option for people from all types of backgrounds. Most of the time, no specific degree or certification is required to work as a freelance business accountant.
What are the Benefits of Becoming a Freelance Accountant?
There are several benefits to choosing this position. First of all, you do not need any previous experience or certification; most of the time, you can simply start working as a business accountant with no job preparation.
Another benefit is that you will be able to establish your schedule and pace of work. Most freelance business accountants set their hours and control how much time they dedicate to each client. This allows people who value flexibility in their lives the ability to make money without compromising their personal goals and schedules.
Here are some other awesome benefits of being a freelance accountant.
Great Work-Life Balance
Freelance accountants set their hours and decide how much time they will work each day. They also have more control over when and where they work, which means they can plan their days and weeks to better suit their lifestyle.
Since they are in charge of managing their own business, freelance accountants have the freedom to prioritize certain tasks throughout their day. This way, you do not feel overwhelmed with trying to complete all your work at once; instead, it allows you to focus on what is most important in that specific moment in time.
For many professionals, this means more free time in their day to spend with family and friends, pursue hobbies or work on their personal goals.
Control Over Your Career
You decide which jobs want to take and what your compensation will be. You also get to choose how much time you will dedicate to each project and how you want to allocate resources.
Since you are the boss of your own business, there is no limit to how much money you can earn. With this freedom of choice and control over your schedule, if you work hard and find more clients, you can make a very nice living doing what you love.
Also, when you work as a freelancer, you are not reporting to any managers or following anyone’s rules but your own. This is an excellent position for people who like working with minimal supervision and having total control over their careers.
Great Pay
Freelance accountants can make a lot of money. While many people think that only big corporations can afford business accountants, this is not true at all. Most freelance accountants work with micro-businesses that do not have the budget to hire full-time employees or in-house accountants.
Even if you do choose to work for larger companies, your salary will likely be much higher than what someone working in another profession would expect.
Freedom to Work for Many Clients
When you are a freelance accountant, there is no limit on how many clients you can work with at one time. As long as the workload is correct, it is possible to complete several accounting projects at once. This makes it easy to generate income without sacrificing your social life or personal interests.
How to Prepare to Become a Freelance Business Accountant
The great thing about this career option is that you do not need any previous experience or certification to become a freelance accountant. However, there are some steps you can take to prepare for starting your own business by learning more about it and building your portfolio.
What Skills Do You Need as a Freelance Accountant?
There are many skills required to become a freelance business accountant. Most of them are related to having strong math knowledge, computer literacy, and the ability to explain technical information in clear words that everyone can understand.
Communication Skills
If you want to land the best jobs, it helps if you have excellent communication skills. This means that you need to be able to both interact with clients and write good reports. When you work for larger companies, the in-house accountants are often the ones assigned to talk with clients. Being able to talk with clients on the phone or in-person is an excellent skill to have because it makes you look more professional.
Computer Literacy
The technical knowledge required to work as a freelance accountant is mostly related to computers. It helps if you are familiar with different types of software, such as Quickbooks Online or Quickbooks Self-Employed, Excel, and Word.
These tools are often used by companies when they are trying to prepare their accounting reports. When you build your client base, there is a good chance that you will be assigned to use these tools to complete your job.
Strong Math Background
The majority of freelance accountants are business-related individuals who have worked in the field for several years. This is because it takes a lot of expertise to understand the different financial reports and develop ways to present them in a way that makes sense.
If you have majored in business, finance, or accounting in college, this is an excellent background for working as a freelance accountant because it will allow you to quickly comprehend what your clients need and how they want their information presented.
Ability to Network and Build Your Portfolio
After you finish your degree, it will be important to build a portfolio and expand your client base. If you complete projects for different clients and work with them until they become repeat customers, your reputation as a freelance accountant will improve. This is the best way to ensure that other people know about your work and can refer you to other potential clients.
Networking is more than just talking to your classmates and former co-workers. It also requires that you spend time on social media and participate in online communities related to the type of work that you want to do. When you participate in these types of activities, it will be easy to meet others who can introduce you to potential clients.
Do You Need An Education?
If you are planning to pursue a career as a freelance business accountant, it helps if you have at least completed some college courses in accounting. The majority of companies won’t take on freelancers unless they have their Certified Public Accountant (CPA) certification or Master’s degree in accounting.
While it is not required to have a degree to become a freelance accountant, it is often helpful to have some form of education in accounting. This is because you will need to understand the different financial reports and be able to develop ways to present them in a way that makes sense.
If you have majored in business, finance, or accounting in college, this is an excellent background for working as a freelance accountant. You will also be able to quickly comprehend what your clients need and how they want their information presented.
The majority of freelance accountants are business-related individuals who have worked in the field for several years. This is because it takes a lot of expertise to understand the different financial reports and develop ways to present them in a way that makes sense.
It helps if you have at least completed some college courses in accounting, although it is not required to have a degree to become a freelance accountant. This is because you will need to understand the different financial reports and be able to develop ways to present them in a way that makes sense.
What Kind of Accounting Software do You Need?
As a freelance accountant, you will need to be able to use different types of accounting software. This is because many companies rely on software to prepare their financial reports. When you are bidding on jobs, it is important to let your clients know that you are familiar with the software that they use.
The most common types of accounting software used by small businesses are QuickBooks, Excel, and Word. If you are familiar with these tools, you will be able to quickly understand the reports and financial records that your clients send you. It also helps if you know how to use the different features in these programs so that you can complete your projects on time.
What Kind of Accounting Services Should You Offer?
Freelance accountants (sometimes referred to as a financial planner) offer a wide array of accounting services. Most companies are looking for help with their annual reports, tax returns, and financial statements. Other services that are commonly offered are cash flow management and business advisory services.
If you want to increase your potential clients, you should try to offer as many different types of accounting services as possible. You never know when a client will approach you with a project that you’ve never done before.
Annual Reports
Most companies are looking for freelance accountants to help with their annual reports. This is because it can be very difficult to understand financial reports without some training or experience in accounting.
You will also need to understand how different types of businesses operate to develop the right way to present their information. These reports are necessary for large companies, a small business, or self-employed independent contractors to understand their business growth, overhead costs, and income and expenses.
For example, if someone makes money keeping bees, they would likely want to hire a freelance accountant who was familiar with that industry or side hustle.
Tax Returns
Freelance accountants are also commonly hired to file tax returns for clients. This is because most individuals do not have the expertise or experience to complete this type of financial report on their own. When you are bidding on jobs, it is important to let your clients know that you are familiar with the process of filing taxes and tax planning.
Financial Statements
Financial statements are necessary to understand the success or failure of a company. All businesses should have their financial statements prepared by a qualified accountant. This is because it can be very difficult to read and understand this type of report without some training or experience in accounting. When you are bidding on jobs, it is important to let your clients know that you are familiar with creating financial statements for their small business.
Cash Flow Management
Another service offered by freelance accountants is cash flow management. This refers to the planning, forecasting, and analysis associated with managing current assets or short-term investments. You will need to have a high level of expertise in this field because you will be advising your clients on the steps that they can take to reduce their cash flow problems.
Business Management and Advisory Services
Another common service provided by freelance accountants is business advisory services. This refers to the provision of guidance and direction related to specific operational issues or business decisions. This service will be helpful for many companies because you will serve as an unbiased professional who can offer recommendations to help businesses become more efficient.
This is an excellent way for freelance accountants to increase their profits, but only if they are working with clients that have a high amount of revenue.
Financial Transactions
This refers to the recording, classifying, reviewing, summarizing, and analysis of financial events related to a company or other entity. You will need experience with accounting software because it is used to record all of this information such as online payments, separate business transactions, tax issues, operating expenses, inventory tracking, account reconciliations, bill payments, the company’s balance sheet, mileage tracking, and bank account activity.
This is a great future growth area for current clients as long as you have a proven track record with your clients’ money and their bank accounts.
Quarterly Taxes
Quarterly taxes are the four times a year you have to send in tax information to the IRS. You might be required to pay quarterly taxes if you receive a lot of money as an independent contractor. If you receive or record payments through PayPal or other types of electronic methods such as Quickbooks Online, it is very easy to pay your quarterly taxes before they are due
This means that you do not have to worry about facing interest charges if you file late. A freelance accounting business must be familiar with quarterly tax payments because this is sometimes a service they offer to their clients.
Financial Analysis
One of the most important services provided by freelance accounting businesses is financial analysis. This refers to the application of knowledge, principles, and techniques associated with accounting in analyzing business information. You will be evaluated on your ability to identify major issues that are facing a company and potential ways to address them.
Profit and Loss Statements
A profit and loss statement is also commonly completed by freelance accountants. This refers to the process of summarizing revenue, business and personal expenses, and net income or loss incurred during a specific period. You will be able to charge more for this service if you work with clients that require complex financial reports regularly.
Business Reports
Another service commonly offered by freelance accounting businesses is business reports. This refers to the writing and presentation of information that describes a company’s activities, progress, and financial condition during a specific period. This report will be required when filing income taxes or just for the owner of the business to review to make sure things are going well.
Financial Reporting
One of the most important services provided by freelance accountants is financial reporting. This refers to preparing reports that disclose activities associated with an organization’s operating, financing, and investing activities.
This report of business transactions will be helpful for your clients because they can review it to prepare budgets, assess their performance against previous years’ results, or compare themselves to other similar organizations.
Tax Preparation
Tax preparation is also commonly completed by freelance accountants. This refers to the process of determining, estimating, and documenting estimated taxes owed by a client or company following specific rules set out by the government, especially during tax season.
You will be able to charge more for this service if you are familiar with all the different types of tax regulations that can affect businesses, such as automatic mileage tracking.
What are Certified Public Accountants?
Certified Public Accountants are professionals who have the education, training, and work experience required to perform accounting services or tax preparation. You must pass a certification exam to become a Certified Public Accountant. Other types of certified accountants include Certified Management Accountants and Certified Internal Auditors (external auditors are another type).
This is usually required for salaried accountants who want to work for an accounting firm. However, for sole proprietors in the freelancing world offering freelance services or small business accounting to prospective clients, it might not be necessary.
Do I Need to be a CPA to Start a Freelance Accounting Business?
You do not need to be a Certified Public Accountant to run your own self-employed accounting business. However, it is beneficial if you are already familiar with the type of work that you will be doing for clients, and this usually requires some level of certification. You may also consider hiring an accountant or bookkeeper to help with the day-to-day tasks of running a business.
That being said, you will likely find freelance accounting work easier if you are a Certified Public Accountant. People tend to trust these professionals more than someone running their own business, and it is often easier to gain referrals from other people if you have this certification.
Tips on Finding Work as a Freelance Accountant
There are many ways to find clients for your freelance accounting business. One common strategy is to offer free samples of your freelance services to build a reputation and make connections with potential future clients.
Chambers of Commerce
One great place to try looking for work as an accountant is through the local Chambers of Commerce. This is a great way to connect with local businesses and learn what they need from their accountant. To get started, just search the local Chambers of Commerce in your area.
Once you figure out when the meetings are, try to volunteer to speak about your services. This way you can meet many of the business owners and learn exactly what they need from their accountant.
Professional Organizations
Another good place to look for clients is through professional organizations or directory listings. These groups are typically made up of small businesses with similar types of needs, so it’s easy to connect with the people that you would like to work with. You can also attend their meetings and seminars to meet the people who you will eventually be working for and start building your reputation as an accountant.
Trade Associations & Friends
Another option for finding work as an accountant is by using word of mouth from friends and other professionals in the same industry. You may also want to attend trade association meetings or seminars that introduce you to new contacts within your industry. You can generate leads for your freelance work this way in the gig economy.
Don’t be hesitant to ask for referrals. A lot of your work as an accountant will come from people you know (or even other accountants), so make sure to ask anyone who needs accounting services if they know anyone else that would benefit from working with you.
Job Boards
A third way to find clients is through job boards online, which are a great place to post advertisements about your services. Craigslist has many different cities where you can post help wanted ads, specifically under the “employment” category (please note: Craigslist no longer allows postings from users who do not have a verifiable phone number).
Once you’ve found some leads, it is important to follow up right away. A common mistake that people make when looking for work as an accountant is failing to contact their leads immediately or within a reasonable time frame. People are less likely to respond the longer you wait, so it is usually best to try and reach out multiple times if they do not respond to your first message.
Finding Clients: LinkedIn and Meetups
LinkedIn is a social media website that connects people with similar professional interests, so it is an effective tool for finding clients as an accountant. You can post status updates on LinkedIn asking if anyone has any recommendations for work for accounting professionals. Using your social media accounts or digital presence to make online connections is a great way to offer your services and let people know that you are available to help.
FAQ – Becoming a Freelance Business Accountant
What is the supply and demand like for freelance business accountants?
The job market as a whole is very competitive, especially with the increased outsourcing of jobs overseas. However, the supply and demand for freelance business accountants will likely remain steady as long as there are still local small businesses around. This means that you should be able to find clients relatively easily and be able to build a steady stream of customers.
If I want to be hired as an accountant, should I list any relevant work experience on my resume?
Although you do not need previous work experience as an accountant to land a job as one, it can give you an advantage over other applicants. This especially holds if you are applying for a job where you will not be offered any training.
What are the average fees that someone would charge as a freelance business accountant?
The fees for this profession can vary greatly based on what services you’re offering and how much experience you have with tax preparation. Generally, most accountants charge between $25 and $75 per hour. However, some charge much more in terms of hourly billing. (Remember, though, that you don’t get any typical “employee benefits” as independent contractors or sole proprietors in the gig economy.)
What kind of education is needed to become a freelance business accountant?
You do not need a college degree or any special training to become a freelance business accountant. However, it is often the case that employers will hire people who have a degree in accounting, even if they are only looking for a freelance accountant.
What kind of skills do I need to become a freelance business accountant?
In addition to checking the education level required, you should also check what skills are needed for this profession. You should have some experience with tax preparation as well as bookkeeping and accounting software. Since these jobs can be done remotely, good communication skills are also essential. You might also want to learn about search engine optimization so that you can grow your business online.
