Preparing your finances and getting your books ready for that all-important end of year tax return can all be incredibly stressful. Sometimes it is certainly worth hiring a professional to help you out, and this could be one of those times; it might be worth considering how much you would benefit from using a CPA or a bookkeeper to help you throughout the year – but especially during the busy holiday season. It may be time to hire an accountant.
Here are just a few of the reasons you might consider hiring a professional to help you out:
Tax laws
Tax laws are complicated and keeping up with the many changes as they come into effect can be time-consuming. It can be difficult to make sure you are constantly up to date with these changes. Missing one could have costly financial implications for you if it results in a mistake on your books. An accountant will be aware of what laws are new and relevant to you and they should even be able to help you get the most current tax benefits. If you work with a CPA or hire an accountant who focuses on growth and profitability, tax strategy should also be a part of your accounting services. If you are not fully aware of the opportunities available, it can be costly to your business. Not sure how tax planning could help your business? We discuss this in more detail here.
Finding the time
In today’s fast-paced world, finding the extra time to deal with finances can be a struggle. This is particularly the case for those who work long hours or have a young family. Hiring an accountant to deal with all the paperwork associated with accounts and tax returns can free up some precious time that you can spend making memories with your loved ones instead. A CPA or bookkeeper will be able to do the job much more efficiently and in less time.
Numbers are not everyone’s forte
Some people are simply not good with numbers and if you are one of them, then getting a professional to do your books could be a very wise move. Mistakes can be costly so letting someone who knows what they are doing take over a job could prove very cost-effective. Plus, you’ll have peace of mind that every aspect of your accounts is covered.
Your credit rating
Believe it or not, a CPA could help you improve your credit rating. It is true that paying your bills on time can have a great impact on your rating, but there are many other things you can do that should prove very effective. You may not be aware of all of the factors that contribute to your credit score but an accountant has the acumen to help you achieve your financial goals. If you haven’t pulled your credit report this year, visit annualcreditreport.com. It is good practice to pull this report annually to ensure you’re where you want to be, and catch any potential identity theft.
Income
If you are a higher earner, earning over $200,000, then there is a greater chance that your accounts could be audited. Having a qualified accountant taking care of your books could, therefore, be very beneficial as it is more likely they will contain fewer mistakes. The same could also be said for those who are self-employed, have multiple sources of income or own their own business. In these situations, the paperwork is a lot more complicated, and it is worth the small outlay to have a professional assist you.
Life changing circumstances
As we go through life, there are many big life changes that occur. Getting married, divorced, having children or even retiring; these can all change your financial and tax landscape. With such big changes, it is worth having professional assistance to help you with these transitions. Having children often leads to thinking about their financial future; whether you want to set up a savings account or trust to help your children out financially with college or even getting their first home once they have finished their education. A CPA has the tools to be able to help you maximize the money that you want to put aside so that you can offer you children the best financial help for the future. What other changes should you let your CPA know about?
Inheritance
If you have received an inheritance (either cash or property), then it can have big implications when it comes to your taxes. Without specialized help navigating your way through the intricacies of inheritance taxes, they can be very costly. This can be one of those instances where using the services of an accountant is vital. Not only will they be able to help you with your current situation but they will also be able to look at ways to help you reduced the associated taxes in the future as well. The time and money you invest to hire an accountant will serve you well in the long run.
Life is about balance – Hire an Accountant to Help
As with so many things in life it is about finding the right balance. Time is precious, and when possible it is preferable to avoid things that are stressful. A bookkeeper or CPA could certainly help you with both; someone else taking over the complicated paperwork for your accounts could decrease your stress levels over the holiday season, while also helping you prepare your finances for the year end.
If you haven’t yet considered it, then perhaps consider virtual accounting, where qualified accountants offer their services remotely. This means taking advantage of incredibly cost-effective, efficient and flexible accounting options without the need to attend a large amount of meetings. Hiring a virtual CPA at PJS & Co. CPAs is a great way for small to medium sized businesses to access the services of an accountant while focusing on core business objectives and receiving one-on-one guidance to help achieve those goals.
So, if you have been thinking about getting assistance with your books then now is the perfect time to reach out to an accounting professional and make it happen, so give yourself some extra free time and enjoy the holidays with the ones you love – safe in the knowledge that your accounts will be handled professionally.