Why you should not consult freelancer for accounting and tax advisory?
In the current competitive era each business set up try to be cost effective in providing solutions to their customers and to achieve this some businesses look for freelancers services which are available at low cost.
But as we know that accounting and tax advisory are delicate processes which shall not be properly undertaken by a freelancer. Therefore, we should look for hiring certified accountants and professionals on whom you can rely on for getting expertise and valuable guidance at affordable cost.
The effectiveness of the task they perform comes next in question when it comes to accounting and tax advisory services. For the sake of cutting down your cost, there are certain drawbacks where you should not consult freelancer for accounting and tax advisory services:
Lower costs should not curtail down the effectiveness of the task
A freelancer is an individual who performs multiple tasks of various clients. Thus the chances are to reduce effectiveness in the task performed due to lack of skills and experience in a particular project. There is no guarantee that the freelancer can overcome lack of knowledge for the project being performed. Freelancers, however, are paid on an hourly basis so costs of hiring them are low.
It’s a one man army –missing out deadlines
Whenever accounting and tax advisory projects are delegated to one-man army i.e. freelancer or an individual, chances are such that they may take time to understand the complications of the project which could hamper the time deadlines to meet.
Lesser control on freelancer
Executives who delegate the accounting and tax advisory have less control over freelance talent, which makes it more tedious for them to plan for and estimate proper allocation of work.
Freelancers can’t shoulder on full responsibilities
Freelancers are assigned certain target to complete, in instances, when they find it difficult or won’t be able to reach concerned person to talk for further clarification can sometimes escape or run away without informing the executives.
Simultaneous running of projects
Freelancers at times work on various projects so there are chances that they may miss out any general entry or reconciliation statement due to unavailability of receipts or shortfall in any cash entry on the receipt.
Mismanagement of financial records at the time of legal suit
Things can go wrong at the time of a lawsuit from an angry client. You and your business partner could have unsettled disagreement. Your business along with your assets could become the matter of a disputable legal proceeding. During such instances, the financial records are likely to play a significant role. Your lawyer will only be able to prove that your assets and funds are only yours if you have kept clean records.
Not always integrate culturally
Freelance workers may not always integrate culturally like a full-time employee. This sacrifices the mode of spontaneous interaction that is likely to drive the innovation.
Freelancers do not have statutory license to prove themselves
Most of the freelancers you engage for your work do not have any statutory license such as ACCA professional or CIMA professional for showing proof to HMRC at the time of filing your returns. This is a major roadblock as they don’t have power to advise you on tax matters instead do a little work for you.