How an Accountant Can Help a Small Business Owner

what does a personal accountant do

I have over two decades worth of professional and personal financial experience helping individuals and families in all stages of life realize their financial dreams. A CPA can aid in taxes while also providing clients with non-tax services such as auditing and financial advising. On the other hand, accountants may be good at arranging your books but not qualified to advise you on spending your money applicable to current tax law. Equally important is knowing how convenient it would be to contact the accountant if you have concerns or need financial advice.

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If you have a problem that isn’t necessarily within their scope, a personal accountant can recommend a qualified professional to assist you. The majority of them have close relationships with people in similar industries. Thus, if you require the services of an insurer, banker, lawyer, money manager, investor, or other professional, the first person to contact should be your personal accountant.

Management Accountant

To learn more about this, and other bachelor’s degree programs that can propel your accounting career, explore our program pages. Become a Certified Public Accountant To become a licensed certified accountant, you must earn a CPA certification. Accountants who earn the title of CPA have met education and experience standards and they passed the CPA exam. Others gain experience as an accountant while working toward their education and experience requirements and then study to pass the CPA exam.

  • After starting over financially in mid-life, I decided to share my experience and financial lessons learned with others.
  • Simply put, a personal accountant is someone who can handle all your personal finance needs.
  • Your personal accountant will have to explain why you won’t be able to go on vacation the following month.
  • If you keep all your records in a shoe box and groan whenever it’s time to put all that stuff together in some cohesive way, you know what I mean.
  • An accountant’s main responsibilities typically include preparing and examining financial records and ensuring information is up to date and accurate.

An accountant is typically a professional who has earned a bachelor’s degree in accounting. A CPA, or Certified Public Accountant, is a professional who has earned their CPA license through a combination of education, experience and examination. While the technical side deals with accuracy directly, soft skills have a more indirect route to implementation in the job. They are almost ‘personal’ qualities that most hiring managers will look for in their potential workers. Modern accountants are ideally positioned to offer critical financial guidance such as saving money or investing which is more important in your situation.

Top 2022 Accounting Trends

This article was expert reviewed bySheneya Wilson, MS, MBA, CPA, an accountant and CEO of Fola Financial. Accountants know a lot of professionals they can recommend to work with you in many areas. Show you charts, graphs, etc, letting you see how you spend and earn your money. They often know a lot of investors you can talk to if you’re interested in something like that.

  • In summary, accountants can help you manage your cash flow, reduce costs and improve investments, but only if you have the money to hire one.
  • As previously stated, they not only look for tax breaks, but they can also assist you in not overspending.
  • Individuals with significant savings, various sources of revenue, and a high average turnover typically pursue the services of personal accountants.
  • If you don’t mind working long hours, you may enjoy having an accountant’s schedule.

Depending on what sorts of professional exams your career goals require you to sit for, you may need a degree to test your skills and obtain your license. Just keep in mind that you could use their service for a few months and get educated on how they can help you manage your finances before letting them go; in the end, it’s all up to you. For example, if the gift is a property and the recipient intends to use it immediately, you may be able to avoid paying taxes entirely. These are provisions that a personal accountant can look for in order to avoid paying taxes. Keep in mind that, according to the OECD Taxing Wages Report 2022, the average tax rate for personal income in the United States is 24%.

Pros and Cons of Hiring a Personal Accountant for Budgeting

In comparison, accountants aren’t certified to do your taxes after passing their exams and receiving their credentials. If you decide to manage your books yourself, you should make sure that you have the right tools and software to use. Using Quickbooks for personal finance will be an essential tool to use. In any case, these titles denote highly trained graduates who have earned a bachelor’s degree and gained work experience. Accountants are supervised in several countries by professional associations that oversee accounting education and ensure high professional standards. Professional accountants are referred to asCertified Public Accountantsor Chartered Accountants, depending on the region. Another major disadvantage to accountants is their inclination for error.

Commercial awareness means knowing the fit of your business in the market. This implies knowing what kind of impact could a form of a political, economic, and social movement have on it.

Key Soft Skills to Succeed in Accounting

All accountants are held to high standards of skill in issuing professional opinions. They can be sued for Malpractice if performance of their duties falls below standards for the profession. But we have to do it, so it’s good to know what the small business tax rates are for 2020—if for no other reason than to keep the IRS off your back. Just like in any professional relationship, communication is key.

A financial coach is someone who offers motivation and information to help others with money-related issues. A bookkeeper who reviews your work quarterly can be less expensive than hiring a professional accountant. Having data analytics and communication skills are particularly valuable, Chatterton said. Curiosity and the ability to listen and observe, are equally important. An affinity for numbers is crucial for a successful accountant, but so are strong communication skills.


The pros of hiring a personal accountant include efficient tax management, organized bookkeeping, and professional guidance on future investments. At the same time, the cons consist of steep service charges, disclosing personal information, and the possibility of miscalculations due to human error. An accountant is a professional who is responsible for keeping and interpreting financial records. Most accountants are responsible for a wide range of finance-related tasks, either for individual clients or for larger businesses and organizations employing them. As a forensic accountant, your job duties might include tasks such as auditing financial records, determining the losses resulting from issues like breaches of contract, and working to forecast financial fraud. That means you’ll need to be intensely detail-oriented — ideally, with a passion for learning about financial laws and white-collar crime. If you’ve ever considered a career in accounting — or, even if you haven’t — continue reading to learn more about this profession and whether it could make a good fit for your skills and interests.

And when your pool of cash is large enough, you can turn to your personal accountant to help you invest it. Having reliable financial information is vital for any business or government organization. No longer considered just “number crunchers,” accountants play a vital role in the sound financial management of a company. For professionals who want to enter the accounting field, it’s common to wonder what the difference is personal accountant between an accountant and a CPA. While it may seem that people use these terms interchangeably, there are distinctions between these professionals. A job as an accounting clerk will help you establish yourself in the financial field, but this is just the beginning of your career path. However, with the appropriate education and experience, you might be able to get a job that lands you in the top 10 percent of earners.

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