Do You Need a Personal Accountant?
The short answer to whether you need a personal accountant or not is a resounding, "yes!''. Everyone benefits from having someone to do the sums and maximize their tax returns.
Hiring one of these highly-qualified individuals can cost as much as $117,000 a year. Are they going to save you enough money to justify the expense?
Let's find out if this is the case and if there's a way to cut these costs.
What Does a Personal Accountant Do?
The main task of an accountant is to prepare and examine your financial records for accuracy. They calculate how much tax you owe after deductions and make sure that you pay on time.
Together with auditors, CPAs keep tabs on your financial operations. They can identify shortcomings and improve your record-keeping systems.
The best accountants have a set of personal qualities that include meticulous attention to detail.
Usually, only mega-wealthy individuals hire a full-time accountant. Most people can make do with a part-time personal bookkeeper instead. There are exceptions to the rule.
If you don't have a standard 9-to-5 job, your taxes can get complicated. This is especially true if you have many sources of income or receive cash from investments.
Personal accounting services can help to take the guesswork out of tax time. They'll also ensure you don't overpay the IRS.
Starting a New Business
It's a great idea to have a CPA in your corner when starting a small business. This will ensure that you have your finances in order from the beginning.
They will help to formalize a business plan, assist with tax filing and give you advice for the future. An initial consultation with a professional is all it takes to avoid the financial pitfalls of starting out in business.
If you can't afford a full-time accountant (and in some cases even if you can), outsourcing your bookkeeping services is the next best thing.
A Large Inheritance Has Come Your Way
Inheriting a large sum of money is a mixed blessing. You could be subject to a hefty inheritance tax. It could also affect all your future taxes.
Hiring a CPA to help you make the best of the situation can save you thousands - both upfront and down the line.
Big Changes are Afoot
Major life changes such as marriage, divorce, buying a house, or having a baby can affect your tax status.
For starters, during these events, the last thing you want to be doing is math. Secondly, an accountant will point out any tax benefits that your new status entitles you to. They'll make sure you get them too.
How to Get Top Accounting Services for Less
Few people can afford a personal accountant to cater to their every financial need.
If you are unsure about how to make the most of your finances, get in touch with us for a free consultation. Our team of CPAs and personal bookkeepers can set you up with a tax preparation and financial record-keeping system to suit your needs.