Every freelancer gets to a point in her career where she must ask herself: Am I finally ready to treat this like a real business and hire an accountant? The consensus after speaking with two writers and a certified public accountant (CPA) is if you’re willing and able to pay up, having an expert manage your ledger is a valuable investment.
Read on for their advice.
Find the right match.
Although you don’t necessarily have to seek out a CPA who deeply understands every writer-ly woe, there is a resounding sentiment among writers with accountants that you’ll feel most comfortable and satisfied with a CPA who has some experience working with people in your field.
Freelance graphic designer and writer Preston D. Lee made the mistake of picking his first CPA at random. “That didn’t pay off,” he says. “They were not extremely helpful and I found I was basically doing all the real work and paying them simply to file the information together in one place.” He persisted in his search, however, and found a private CPA who didn’t work for a firm and established a strong working relationship with the accountant.
“Thousands of people can do the technical work a CPA can do,” Lee says, “but only a few people will really understand and appreciate my business the way I need them to. For me, it’s about getting the right people on board in all areas. Finance is no different.”
Independent writer Davina van Buren found her CPA through a referral from a fellow freelancer. “I specifically tried to find someone who worked with freelance writers. I’ve worked with him for two years so far. It makes me feel more comfortable that he remembers me.” On finding a CPA with experience working with writers, she says, “CPAs are kind of like writers: they have their specialties as well. For me, it made me feel better to work with someone who’s used to working with writers and [who knows] all the things we can write off [when filing taxes].”
Says Brittany Hopp of York and Hopp CPAs, “You’re definitely going to be more willing to call someone throughout the year if you feel like you can trust that person.” Hopp emphasizes calling around, getting referrals and actually interviewing CPAs or tax preparers to find the one that suits your specific needs.
Learn how a CPA can help.
Some writers may not seek out CPAs simply because they don’t know how a professional could help them. Hopp says in addition to tax preparation, a CPA can help freelancers with general bookkeeping, managing numbers and staying on top of receipts. She adds that some creatives are intimidated by CPAs, but she reassures “we’re really just people and we want to help our clients— even if it’s just education on the front end to figure out what you want to be doing.”
A CPA is also very useful if you have income from several different sources. Van Buren shares what inspired her to seek out the help of a CPA: “The first year I was freelancing, I had a staff job the first part of the year, I was freelancing the second part of the year and the whole year I was also working as a waitress. I had a lot of different things going on.”
I went through a similar scenario. During my first year of freelancing, I was newly married and had income both from freelance work and from my former employer. Instead of attempting to file taxes myself, I took my information to a professional and it helped immensely.
Aside from help during tax time, you can utilize a CPA as often or as little as you need. Lee says, “We don’t meet often. I basically spend a total of 30 to 60 minutes on the phone with my bookkeeping person and accountant once a month.”
Get the facts on service costs.
The catch, of course, even if you’re delighted by the idea of handing your books off to a professional, is the cost of hiring him or her. As you know, running a business for which you’re the only employee means your budget might be a little tight. Therefore, it may be less than appealing to think about spending that precious income on much else beyond your domain name, magazine subscriptions and your Mediabistro AvantGuild membership. So what if you’re interested in hiring a CPA, but the cost is holding you back?
First, don’t just think in terms of money, but consider the time you could save and frustration you could avoid by enlisting help. Van Buren says, “[Hiring a CPA] definitely saves my sanity… I could make this [amount of money] in a quarter of my work day, so it’s worth it to me.”
Lee has a similar outlook. He says every minute he’s spending on bookkeeping and taxes is a minute he could be spending on freelance work.
And you may find the actual cost isn’t as high as you may have initially thought. Hopp says, “Sometimes it’s surprising how affordable a CPA can be, if you ask the right questions and figure out exactly what you need.” CPAs typically charge by the hour. Depending on where you live and the level of experience of your CPA, you could be spending anywhere from $90 an hour to $300 an hour. If this fee seems daunting, consider other ways to save. Students in CPA programs at local colleges may be able to provide the counsel you need. Or, consider a virtual CPA: search for virtual or online CPAs to find a team that can answer any basic questions you might have.
Just bear in mind that finding the cheapest per-hour rate doesn’t guarantee the greatest savings. If you’re working with an inexpensive professional who takes hours to accomplish what a more experienced CPA could do in minutes, you’re better off shelling out for the more experienced pro.
Although there’s no definite rule that will help you determine whether a CPA is right for you, an assessment of your available time, budget and skill set will help guide you. Van Buren puts it succinctly: “Numbers are not my thing. Words are my thing. So, to me, it’s worth it to just pay somebody and not have to worry about my math or whether I left something out.”


