Do I need a CPA? This is one of the most common questions we get. To answer, we came up with 17 reasons why you should seriously think about hiring an accountant.
Whether you’re looking to save some money, prepare your taxes, manage your investments, or plan your retirement, an accountant can help.
Off the top of my head, I can think of 17 good reasons why you probably need to hire an accountant.
1. Changing Tax Laws
For most people, keeping track of the changing tax laws can be difficult at best. If you aren’t constantly paying attention, you could miss something important. An accountant knows what’s new, and can help you get the latest tax benefits. Keep up with the tax changes on The IRS Website.
2. An Improved Credit Rating
An accountant can also help you improve your credit rating. We all know that paying all your bills on time help your credit. But there are many other tactics that can speed up the process. Odds are you don’t know all of them. Guess what? Your accountant does, and they can teach you.
3. Reducing Debt
Getting out of debt can be extremely challenging. But knowing how to manage it, negotiate with creditors, and prevent you from being bullied is exactly what an accountant is for. Let a CPA help you.
4. Your Investments
Are you a stock market genius? What about a real estate guru?
Most of us aren’t, but luckily, your accountant is there to advise you on the best path to financial freedom.
5. You Earn More Than $200,000
If you earn more than $200,000 a year, having an accountant to call is a good idea. According to financial experts, top earners are more likely to be audited. If you are one of the lucky few, you’ll want to have someone with a good financial understanding on your side.
6. Multiple Sources of Income
If you have multiple sources of income, an accountant can help you sort through how to report everything correctly. It is a lot more complicated then if you just have one W-2 to record.
7. You are Self-Employed
If you are self-employed or own your own business, an accountant can help with that too. Hiring someone with financial expertise can help you find ways to lower your taxes that you might otherwise miss.
There are some big write-offs for the self-employed. Don’t miss out.
8. A New Business Venture
Along the same lines, if you’re about to start your own business an accountant can help you prepare. With their help, you’ll be able to ensure that all the necessary tax forms are filed correctly.
9. Saving For Your Kids
If you have kids, and want to contribute money to a college savings account, or even a trust. An accountant can help set all of that up. They have the tools to help you maximize your money as you look toward your family’s future.
10. You Just Inherited
Your future could be up in the air if you just inherited a large amount of cash or property. Inheritance taxes can be costly if you don’t have help navigating the specifics. An accountant will help advise you on the present situation and help you reduce your taxes for the future, as well.
11. Making a Large Financial Gift
If you’re planning to leave a large financial gift, an accountant can help. They will have all the information about how to do so, while gaining the greatest tax benefits.
12. Numbers Aren’t Your Thing
Obviously, if you are bad with numbers, getting some expert help is to your advantage. An accountant is trained to catch mistakes, and to fix them. You don’t want to make a mistake and up being audited.
13. You Own Real Estate or Rentals
If you own your own home, or own rentals, an accountant can help you manage them. There are some specific tax situations tied to rental properties, and some major benefits. You definitely don’t want to miss out on those.
14. A Life Change
Similarly, if you are about to go through a big life change, or you recently have, an accountant can help lead you through the transition.
Anytime you get married, get divorced, retire or have children your tax situation changes as well. An accountant will help lead you navigate the changes when it comes to your financial being.
15. You Owe Back Taxes
If you owe any back taxes to the IRS, do not delay in contacting an accountant to help you out. He or she can help you understand what you owe, and how to avoid any future problems. Most accountants understand how scary it can be going up against the government. A good CPA will stand up for you, and help you get your life back to normal as quickly as possible.
16. To Save Time
If time isn’t on your side, an accountant may be your new best friend. Not knowing what you are doing can be a real time waster.
An accountant will likely be able to cut down on the confusion, and cut down on the time it takes to do the job effectively.
17. To Save Money
Finally, the number one reason you need an accountant is simple. An accountant can save you money. Lots of money.
A skilled accountant knows how to make sound decisions when it comes to preparing your taxes, helping you plan a business, or your setting yourself up for a sweet retirement. Don’t leave money on the table.
The Bottom Line
Hiring an accountant can be a great way to save yourself time, money and confusion. Look for a Certified Public Accountant (CPA) to ensure you are getting the very best expert advise. In the end, this one decision can end up saving you thousands of dollars.