What To Ask An Accountant If You Work For Yourself

By Author: Damien Alcock
Total Articles: 143
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That's why consulting with an accountant is essential to staying financially stable. 
But what questions should you ask your accountant during your consultation?


How to Set up Your Own Business
Setting up your own business can be an exciting and rewarding experience, but it can also be daunting if you're new to the process. Here are some steps to follow to set up your business properly and ensure its success:

Determine your business structure: Decide on the type of business entity you want to form, such as a sole proprietorship, partnership, LLC, or corporation. Each option has its benefits and drawbacks, so it's important to research and choose the one that best suits your needs.


Register your business: Register your business with the appropriate authorities, such as the Secretary of State's office, to obtain the necessary licenses and permits. This will ensure that you are operating legally and ...
... comply with local laws and regulations.


Obtain necessary funding: Consider your financing options, such as bank loans, crowdfunding, or personal savings, to fund your business. Create a budget and financial plan to help you determine how much funding you need.


Establish a business plan: Develop a comprehensive business plan that outlines your goals, strategies, and objectives. This will give you a clear picture of your business's direction and keep you focused on achieving your goals.


Set up your business infrastructure: Establish a business address, phone number, and website to make your business look more professional and credible. Consider investing in essential equipment, software, and technology to help your business run smoothly.


Hire employees: If you plan to hire employees, establish an employee handbook, job descriptions, and employment contracts to ensure that everyone is on the same page. Consider any legal requirements for hiring and managing employees.


Branding and marketing: Develop a strong brand identity and marketing strategy to help your business stand out in a crowded market. This may include creating a logo, designing a website, and developing a social media presence.

Understanding the Role of an Accountant 
As a business owner, you're no stranger to the juggling act of managing multiple responsibilities. From marketing and client meetings to product development and customer support, your plate is always full. But let's be honest, when it comes to crunching numbers and navigating financial complexities, not everyone is born with a natural talent. That's where accountants are helpful!


Accountants aren't just for those big corporations with their shiny skyscrapers and fancy boardrooms. They're the unsung heroes who can be a crucial partner for self-employed individuals like yourself. These number-crunching wizards have an arsenal of skills and knowledge that can help you conquer the financial challenges of running a business.


Let’s imagine you’ve been burning the midnight oil to make your business dream a reality. The orders are pouring in, and you're feeling like the next Elon Musk. But suddenly, you receive a notice from the tax authorities about a missing report. Panic sets in, and you start frantically searching for receipts and invoices like a detective on a wild goose chase. This is where your accountant comes to the rescue!


Your trusty accountant is well-versed in the intricate dance of financial regulations and requirements. They can navigate the labyrinthine tax laws with ease, ensuring that your business remains compliant and penalty-free. They'll keep you on the right track and save you from the headache-inducing pitfalls of financial mishaps.


Whether it's providing expert advice on tax planning, analysing your financial statements, or helping you identify cost-saving opportunities, accountants bring their expertise to the table. They have the power to transform your financial chaos into organised harmony, allowing you to focus on what you do best – growing your business. 


Questions to Ask Your Accountant
Individual Taxes vs. Business Taxes
The world of taxes – a place where confusion reigns supreme and forms seem to multiply like rabbits. When consulting with an accountant, it's crucial to clarify whether they handle individual taxes, business taxes, or both. Letting them work their magic on both fronts can actually streamline your financial management process. It's like having a one-stop-shop for all your tax-related needs!


Imagine this: You run a small online boutique, and business is booming. But amidst the excitement, you might be missing out on tax deductions specific to your business. Your accountant - with knowledge of the tax laws and regulations tailored to your industry - can guide you through the labyrinth of deductions, helping you take advantage of every penny you deserve. That's money back in your pocket!


Expense Tracking and Maximising Tax Savings
We all know that keeping track of expenses can feel as thrilling as watching paint dry. But trust me, it's a crucial aspect of maintaining a healthy financial foundation for your business. Accurate expense tracking and proper record-keeping are the keys to financial sanity.


When consulting with your accountant, ask them about tools and strategies to help you track expenses effectively. Maybe they have some nifty software recommendations or a tried-and-true method that fits your business like a glove. With their guidance, you'll be equipped to monitor and categorize expenses efficiently, ensuring nothing slips through the cracks.


But wait, there's more! Your accountant isn't just a numbers wizard; they're also well-versed in the art of maximising tax savings. Through legal deductions and credits, they can help you keep more of your hard-earned money. Need an example? Let's say you're a freelance writer, and you work from a home office. Your accountant can guide you through the process of claiming a portion of your rent and utilities as a business expense. 
Financial Software and Organisation
Now, let's talk about the secret weapon that accountants wield to keep your financials in shipshape – accounting software. It's a game-changer. By using accounting software, you can bid farewell to stacks of paper and crumpled receipts cluttering your desk. Instead, you'll have neatly organised digital records at your fingertips.


When consulting with your accountant, ask them about the types of software they use or recommend. Maybe they're fans of the tried-and-true industry standards, or perhaps they have some insider tips on the latest cutting-edge tools. The benefits are immense – financial transparency, real-time insights, and the ability to make informed business decisions with ease. It's like having a virtual assistant who never gets tired of crunching numbers. 


How to Choose a Good Accountant
Hiring the right accountant can be a game-changer for your financial success. But how do you choose a good one? Here are some tips to help you find the perfect accountant for your needs:

Ask for recommendations: The best place to start is by asking colleagues or friends who run their own businesses for recommendations. Personal recommendations can give you an insight into the level of service you can expect.


Look for experience in your industry: An accountant with experience in your industry can provide valuable insights into specific tax laws and deductions that could benefit you. They may also have contacts or networks within your industry that could be helpful.


Check their qualifications: Ensure that your accountant is qualified to handle your finances. You want to make sure that they have the necessary certifications and licenses to provide the services you require.


Consider their communication skills: A good accountant should be able to explain complex financial information in plain language that you can understand. Additionally, they should be responsive and accessible when you need them.


Review their fees: Make sure you understand the accountant's fee structure and what services are included in their standard package. Be wary of any additional fees that may be charged for specific services.


Schedule a consultation: Most accountants offer a free consultation where you can discuss your needs and see if they are a good fit. Use this opportunity to ask questions and get to know them better.

Additional Factors to Consider 
Finding an Accountant who Understands Your Industry or Niche
When it comes to choosing an accountant for your business, it's crucial to find someone who not only understands numbers but also understands your industry or niche. Why is this important? Well, imagine trying to explain the ins and outs of your unique business model to an accountant who's never even heard of it. It can feel like trying to teach a cat to swim – frustrating and futile.
An accountant who specializes in your industry or has experience working with similar businesses will have a deeper understanding of the specific challenges you face. They'll be familiar with industry-specific regulations, tax incentives, and financial strategies that can give you a competitive edge. They can also provide valuable insights and benchmarking data to help you gauge your business's performance against industry standards.
The Value of a Proactive Accountant Who Offers Strategic Advice
Sure, you can find an accountant who simply crunches numbers and files tax returns, but why settle for that when you can have a proactive partner who goes the extra mile? A proactive accountant is like a financial Sherlock Holmes, always on the lookout for opportunities to optimize your financial situation and propel your business forward.
When consulting with potential accountants, ask them about their approach to providing strategic advice. Will they review your financial statements regularly to identify areas for improvement? Can they help you create a budget or forecast to guide your business decisions? A proactive accountant will become your trusted advisor, helping you navigate financial challenges, plan for growth, and make informed choices that align with your long-term goals.
The Benefits of Establishing a Long-Term Relationship with Your Accountant
While it may be tempting to view your accountant as a one-time consultant you call upon during tax season, establishing a long-term relationship can bring significant benefits to your business. Remember, Rome wasn't built in a day, and neither is a financially stable and thriving business.
By working closely with an accountant over time, you build trust and familiarity. They become intimately acquainted with the nuances of your business, your financial history, and your future aspirations. This knowledge allows them to provide personalized guidance that aligns with your unique circumstances. Moreover, as they become more invested in your success, they can offer proactive advice and help you adapt your financial strategies as your business evolves.
Think of your accountant as a financial partner who's there for the long haul, supporting you through the ups and downs of entrepreneurship. With their expertise and understanding of your business, they can become an invaluable asset in helping you achieve your financial goals and take your business to new heights.