If you have few transactions, manage your own books using a bookkeeping software (or spreadsheet) and hire an accountant to file your tax annually. Should you hire a bookkeeper or accountant? There’s just too much complexity involved!ĭepending on the city you’re in, a skilled accountant can cost at least $70-$100 per hour (or $300-$800 for a flat rate).īear in mind that the more messy your financial transactions are (e.g., coded to the wrong accounts), the more expensive it will cost to hire an accountant to clean them up. Unlike bookkeeping, you need to hire a professional to do your accounting. It certainly beats saving these PDFs in Dropbox and digging through dozens of sub-folders to access them when tax season rolls around. CostĭIY bookkeeping is easy thanks to its administrative nature and the abundance of affordable software.įor instance, upload your receipts via the FreshBooks and MMC Receipts integration if you want to record your expenses. The advice can be as simple as identifying the tax deductions you’ve missed or as complex as advising you to switch from LLC to C-corporation and pay yourself a fixed salary to save on taxes.Īnd yes, in case you’re wondering, using a bookkeeper software or hiring an accountant is fully tax deductible! 3. Without bookkeeping, it’s impossible to draw insights and improve the financial health of your business.Īccountants offer valuable tax-related advice, hence the hefty price tag (more on that later). More importantly, you can accommodate for slow periods and set the appropriate budgets for expenses (e.g., hiring contractors, enrolling in a course, upgrading to a new web hosting plan). ![]() ![]() When you maintain your books daily, you’re better informed about the money going in and out of your business. Goalīookkeeping keeps your business finances in check.
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