According to this Fundera statistics, an average full-time freelancer makes $68,300 per year. This is higher than the average American family's annual income ($59,039 on average). It's no surprise that many people have turned to freelance as their primary source of income.
The accounting industry is not left out, as more professionals in this field are opting to become independent. This type of work enables them to be more flexible and earn more money by providing services to a diverse customer base. There are several freelance accounting job opportunities available both locally and online.
There are also online accounting courses available for people who want to pursue a profession in accounting but lack the necessary qualifications. This Workee article talks about the different freelance accounting services and jobs available and some tips on becoming a freelance accountant, bookkeeper, or freelance CPA.
What are freelance accounting jobs?
Before we look at the numerous freelance accounting jobs available and how to become a freelance accountant and begin working as a freelance accountant, let us define the term. Freelance accounting jobs are accounting-related tasks that freelancers do from the comfort of their schedules. This can include managing a business's cash inflow and outflow and the payroll system and tax payments.
What are the requirements for being a successful freelance accountant?
A bachelor's degree
Anyone who aspires to practice as a freelance accountant requires a degree. In some accounting niches like Bookkeeping, a Higher Diploma can be a requisite qualification for one to render freelance bookkeeping services. Do you wish to practice as an accountant but don't have the requisite qualification? Not to worry, you are covered. Some universities now offer online courses to help you get the qualification. These courses are structured to acquaint you with the required expertise to face accounting gigs' current and future challenges.
Interestingly, you can undertake these courses required for a degree in the comfort of your room and under your schedule. Another good thing is that since the internet is the major environment for freelancers, obtaining an online degree prepares you to thrive in the digital sphere.
A CPA certification or specialization
According to estimates, only 30-45 percent of accountants in the United States are certified, public accountants. This implies the dispensability of the certification. You do not need to be a CPA to do an account-related job. However, the certification will give you an advantage and up your earnings. Data provides that a CPA earns 10 to 15 percent higher income than a non-certified accountant. Therefore, it is good that you should take an examination to get certified to enjoy this advantage.
Accounting software and programs to aid your practice
In the past, accountants required a great deal of corporate-level infrastructure. It took a lot of human resources – inputting data, filing papers, and keeping journals. It also required time, effort, space, and people to offer payroll services or produce good business management reports. With online accounting software, freelance accountants can now do all of this independently. This is why it is necessary to familiarize yourself with financial software. A good understanding of these tech tools will help you work efficiently.
A powerful online presence
The internet serves as the largest gig environment for freelancers. The internet also connects freelancers with clients. Therefore, it is imperative for anybody interested in entering the freelance accounting niche to have a strong online presence. You'll need to establish a professional presence. For example, having a website where you can include important information about yourself and your work and a place where potential clients can get in touch. Additionally, you may post your website on other social media networks to boost your online presence. Workee is an all-in-one platform that enables freelance accountants to quickly and easily create a professional website and manage clients, bookings, payments, and taxes.
Freelance accounting jobs you can engage in
As pointed out in the introduction, freelancers have different kinds of accounting jobs. But for this article, we will be drawing your attention to opportunities for CPAs, Bookkeepers, and Accountants. Although these three accounting niches are related, they are somewhat different.
Freelance bookkeepers offer a wide range of freelance bookkeeping services like:
Recording sales and purchases.
Balance financial documents like bank statements.
Keeping track of a firm or company's accounts to determine how much the firm or company owes and how much the company is being owed.
Preparing, monitoring, and maintaining of payroll system of a company.
Payment of company bills that are due.
Freelance bookkeepers offer accounting services to clients. Modern-day bookkeepers prefer to use software instead of the old practice of using hard-copy ledgers. Whichever tool a bookkeeper uses, the aim is to keep account of funds that come in and move out of the establishment. Firms prefer to hire freelance bookkeepers, CPAs, and freelance accountants to save costs. In most cases, Accountants and CPAs are hired to handle only complicated accounting services.
On the other hand, freelance bookkeepers perform lower-level accounting services like maintaining a firm's ledger and payroll system. The job of accountants goes beyond that. They analyze a business's finances and give the business owners insight into the company's finances. They also use the firm's data for planning. An account's responsibilities include:
Giving tax advice and securing a suitable plan for clients.
Projecting a business' finances to enable future planning.
Oversee and make recommendations regarding how the company spends.
CPAs (Certified Public Accountants)
CPAs perform a wide range of responsibilities. They analyze financial records to prepare tax returns, do budget reports, and conduct audits for their clients. They ensure that a company's financial records comply with the extant laws and regulations.
They calculate total taxes owed, file appropriate tax forms to claim deductions, and ensure that clients make payments on time and in full. CPAs also prepare financial documents. They prepare financial documents like tax returns, budget reports, and financial statements. They also create quarterly earnings reports for businesses and accounting records to track expenses and profits.
Due to the flourishing freelancing industry, Independent accountants now have an expanding number of chances. All you need to get started are the necessary certifications, expertise, and tools. Because the primary market is online, having an online presence is critical, which Workee can assist you with.
Workee is an all-in-one platform that allows freelance accountants to manage their business effectively. Workee includes booking and scheduling features and video calls to communicate effectively with clients. Workee also provides billing, accounting, invoicing, and tax management features. All you need do is focus on your work while Workee handles the rest.