Finding the right mix between being a Creative and handling the money side of it all can seem daunting. Give me just a few minutes to paint a different picture for you. Hiring an accountant can be a huge game-changer for your business.
I worked hard to put the initials C.P.A. after my name but in my heart, I can relate to all Creatives. Easily, I could have stayed in a firm and crunched numbers all day, but I used every free minute to figure out a way to get closer to my own creative bliss. Working with such passionate creative people is the perfect mix in a world of spreadsheets and numbers.
As a Creative, you have all you can handle just staying on top of your business and now you’re being told you have to add spreadsheets and tax law to the mix? Accountants, CPA’s in particular, are required to keep up with Federal and State tax laws by taking continuing education courses every year. It is a good thing to have someone who does know these things on your side.
Your accountant can help to hold you accountable and keep your financial records up-to-date. I know it is tough to make ourselves keep up with the mundane tasks like bookkeeping. I struggle with it myself. One way to stay up-to-date is to set up quarterly bookkeeping reviews with an accountant. Peace of mind is a good thing. As a bonus, you will be able to see where your income is throughout the year and respond quickly.
Accountants can help you determine what you’ll need to pay in for estimated taxes. This takes a heavy weight off your shoulders as the end of the year approaches. We can also can help you understand the financial ramifications of choosing to be a sole proprietorship, partnership, Limited Liability Company (LLC), and S-Corporation as well as walk you through the steps.
Having your own Creative business is a wonderful expression of yourself. There are times, though, that we make use of other’s talents in order to bring our visions to life. In other words, we pay other people for their services. On the business side, this means you have to determine if a 1099 or W-2 needs to be sent to the IRS and your state. Your accountant can assist you and even prepare these for you.
If you’re not sure where to begin with a bookkeeping system, that’s the perfect reason to make an appointment with an accountant. You may be really comfortable with a spreadsheet, but if you’re not into formulas and hand-entering everything, your accountant can also recommend programs that automatically pull in transactions so you just have to categorize them (Check out Freshbooks or Wave). It is really important to have a good system in place you can stick with throughout the year.
Bottom line is that hiring a good accountant can be a real benefit to your business. I promise that it will reduce stress and leave you with much more time to spend on your craft and generating income! Robert Frost once said, “Freedom lies in being bold.” Don’t let your finances run you. Be bold, find an accountant and take charge so you’re working towards your own personal freedom!