While freelancing is proving to be among the most popular career choices in the world today, that does not make it less intimidating than most options. Many people have questions about it, and do not know what to expect in many cases – and yet, almost all professional fields are also shifting to online platforms.
Among these options in the freelance world that are increasing in popularity is accounting. Many clients who seek out freelance accountants may not want to incur the cost of hiring a full-time employee, yet still want to retain a good quality of work in terms of creating financial reports and keeping track of their financial records. With that said, what should you expect when you are entering the field of freelance accounting? This article will provide you with some useful pointers.
What are the qualifications you need?
To answer this question, it is good to first know what a freelance accountant does. Your aim is to work with your client to record, examine, and supervise the financial state of the individual or their business, and you are working under an added advantage of providing services across the world. These functions you will need to do include:
- Drafting financial statements on a regular basis to the clients
- Saving and recording data in a timely span, and keeping track of pending bills, profits, losses, sales, taxes, and so on
- Calculating tax returns for the clients
- Doing regular tallying of accounts – either monthly, weekly, or daily
- Ensuring that all the financial activities that the client does adhere to the law
Even though having some basic accounting knowledge will help you, this might be insufficient in some instances. Therefore, some of the qualifications to have are:
- A business or accounting degree
- Knowledge in financial software like MYOB
- Qualifications in accounting courses
- Sub-specialization in internal auditing, government accounting, management, or public auditing
- Register on websites that give you regular accounting assignments. Other than that, make it a point to build your own website and blog to push your name to potential clients, as well as remaining up-to-date on developments in accounting
- Knowledge of advanced computer applications that will help you in the job
After acquiring some experience working at dormzi as online accountant (about 2 or 3 years) you can then become a full-time consultant as a freelance accountant. The more experience you gain after this, the more your chances of becoming an official chartered accountant or a financial planner.
What are some of the advantages to expect?
Allows you to be your own boss
Becoming a freelancer, regardless of the specific field, remains one of the top methods of getting the life of an entrepreneur as you are starting your own business. It also allows you to decide the hours you want to work, the locations you prefer, and also your rest times.
Allows you to work remotely
If your preference is working from your home, then you are flexible enough to make this choice when you take up a freelancing career. The main advantage of the internet is that it allows people to work from any place they want, even working for a client based in another country.
As a freelance accountant, you also get to receive your payments quickly compared to a salaried accountant. Other than that, you may easily get higher payments per month compared to a permanent employee, as it depends on the nature of the project and the agreements you made with the client before starting the job.
What are some of the drawbacks to expect?
If you happen to get a full-time job as a freelancer or you earn certain levels of income, you will need to file extra tax returns (depending on the regulations in your country).
You are the one seeking out clients
As a freelance accountant, you are not under a boss who will assign you projects – so you need to learn to seek them out on your own. The good news is the availability of reputable websites that can guide you to good projects, especially when you are starting out.
You must maintain your CV
The CV/portfolio will help you get jobs online, but you must update it at all times as you acquire new skills.
At the end of the day, becoming a freelance accountant offers many benefits compared to the traditional employment models – so do not be hesitant to pursue it if you see the need to do so.