While there are many apps to help you file your taxes, handle your personal finances and even manage your small business, there are times when you may be better off bringing in professional help. In many cases, the money you save by hiring a certified personal accountant (CPA) is worth the added expense.
If you need help filing your taxes
Millions of people file their taxes themselves each year without a problem. However, filing taxes can quickly become complicated if you have multiple jobs, work as a freelancer, earn income from a rental property or have additional investment income. A CPA knows the ins and outs of the most current tax laws and can help you sort through a more complicated tax return to make sure you are paying what you owe and not a penny more.
When you start or grow a business
Small business owners often try to save money by handling everything themselves, including the accounting. However, hiring an
accountant can help you make better financial decisions, ensure that you’ve filed all the appropriate tax forms, and save money in the long run. Having the help of an accountant also frees up some of your time to focus on the rest of your business.
When you’re struggling to get out of debt
It might seem counterproductive to add the expense of an accountant when you’re in debt and living paycheck to paycheck, but the help of a professional can get you back on track more quickly. An accountant can offer suggestions to reduce your debt, improve your credit rating, budget your income and begin saving toward the future. The lessons you learn about personal finance may also keep you from falling back into debt after your situation has improved.
If you’re planning a lifestyle change
Changes in your lifestyle can have a big affect on your taxes, particularly if you are getting married or divorced, starting a family, switching careers, sending your kids to college or moving into retirement. Hiring an accountant before the big change can help you make plans that are best for your financial situation. When life changes unexpectedly, an accountant can help you sort through the tax implications and other financial fallout.
When you come into money
Winning the lottery or coming into a large inheritance brings its own financial implications, particularly at tax time. An accountant can help you keep as much of the money as possible and show you how your increased wealth will affect your future taxes as well. If you hire a financial planner to help you manage your money, you will still want an accountant to advise you on your tax liability.
You may not need an accountant if you work for someone else and have a simple tax return. However, hiring an accountant may be well worth the expense when you have a more complicated financial situation.
This article is presented by Autoteam Delaware in Wilmington, Delaware