While it is possible to manage a small business or file taxes without help, there are some cases where it can be helpful to hire someone with accounting expertise. In these situations, the money spent on a CPA is worth the extra investment. Below are several compelling reasons to hire a certified public accountant.
If a person has always filed his/her own taxes, they may be reluctant to hand the reins over to an accountant. However, taxes can be complex for those who have multiple streams of income and investments, or for those who are self-employed. An accountant can help clients navigate taxes to ensure they don’t pay more than they owe.
Starting a Business
Those who plan to start a business usually look for ways to save as much as possible, but they shouldn’t scrimp on choosing an accountant. CPAs can ensure that everything is set up properly ahead of a business launch, and they can file the right tax forms, provide advice and help the owner devise a good business plan. A consultation with an accountant may cost up to $500, but it could save a new business owner hundreds in penalties and interest from incorrectly filed paperwork.
Help With Budgeting
Those who are in debt may see hiring an accountant as an unnecessary expense, but a CPA can help put a client on the path to better credit. Accountants can provide budgeting advice and help clients find a way to quickly pay off debts. While the preliminary consultation can cost more than $100, it can help a client save hundreds or even thousands by paying debt faster.
Receiving a Substantial Inheritance
Getting an inheritance isn’t as simple as most people think. Without the right help, a person may have to pay high inheritance taxes. However, an accountant can advise clients on these taxes while reducing future tax liability. The cost of retaining an accountant can vary based on the estate’s complexity.
Giving a Monetary Gift
Like getting an inheritance, giving a gift has financial consequences. An accountant can advise a client on the best way to give a gift, such as utilizing a retirement account or making a donation, to minimize the gift tax to be paid. Here, a simple consultation with a CPA can cost up to $150.