The tax man is never late in collecting his dues, and failing to pay up can have some serious consequences. Filing taxes is no one’s idea of a fun time, and many have considered hiring someone else to do the job. So, should you hire a CPA?
The answer is that it depends on your situation. CPAs, or certified public accountants, are tax experts who are proficient in tax laws. If you only need to deal with common forms, tax software can help you keep track of your dues.
However, if you own a business or are planning for retirement, you may benefit from CPA services. Not sure if it’s worth the expense? Read on to discover when you should hire a CPA.
You’re Self-Employed or Own a Business
Most salarymen don’t need to worry much about taxes, thanks to payroll deductions. When you work for a company, employers withhold a certain amount every payroll period for taxes. However, if you’re self-employed, there will be no one to do this for you.
Whether part-time or full-time, self-employment taxes can be difficult to understand. Since you don’t have a W-2, you’ll be in charge of all federal, state, and SE withholdings. The same applies if you run a business.
A CPA can help you navigate these requirements and push through tax season with ease. They’ll prepare your tax documents and file returns for you. A CPA can also help you reduce your tax liability.
Attempting to handle taxes all your own as a business owner or self-employed individual can be a heavy burden. A CPA can help you save time and money so you can focus on things that matter more.
You Own Rental Properties
On top of finding food tenants and managing maintenance and repairs, owning a rental property can be a stressful affair. All income you get from renting property is taxable. Fortunately, you can deduct the expenses of renting your property from your income.
However, it can be daunting and time-consuming to prepare the needed documents. Many rental property owners have day jobs and aren’t even able to supervise their properties 24/7. If you’re having trouble with taxes on your rental property, a CPA can help.
You’re Expanding Your Business
Expanding a business means a bigger customer base and more sales. However, it also comes with more responsibilities, especially with financial planning. CPAs can help during this intricate stage of growth.
They can evaluate your business plan to ensure you have the budget to carry out your plan. A CPA will ensure that your plans are feasible and sustainable so your expansion doesn’t fail. They will also help you navigate any financial or tax planning issues that may arise along the way.
An accountant can also help if you’re planning to modify your business. Any business modification may sometimes require a change in operations or legal infrastructure. A CPA can help you understand the financial implications that may result from these changes.
You’re Applying for a Business Loan
Acquiring a business loan, grant, or other funding is not an easy process. Applying for finances often involves tedious paperwork and careful financial planning. New businesses and startups often find it difficult to establish credibility.
A CPA can help you secure funding for your business. CPA services prepare documents like financial statements to support your application.
They can help you understand and evaluate different strategies for establishing business credit. They can even help you find loan options that fit your needs and budget. With a CPA, you can focus on your business without worrying about financial implications creeping up on you.
You’re Preparing for Retirement
Retirement is something that everyone strives for once they start working. However, planning it can be difficult if you aren’t financially savvy.
A CPA can help you develop a retirement plan based on your financial goals and objectives. They’ll guide you through the tax details and retirement savings and help you explore different estate planning options. When you’re ready to settle down, you can rest easy knowing your retirement is in safe hands.
You Have Foreign Bank Accounts
Navigating tax laws is already difficult without foreign bank accounts or investments. Foreign accounts or stocks require additional tax requirements. These requirements may vary depending on your specific situation.
Neglecting to file the correct forms or even disclosing this information can lead to harsh penalties. You may receive a hefty fine or even face criminal charges. A CPA can help you avoid this.
CPAs have experience and expertise in managing foreign accounts. They can ensure that all investments and stocks are properly accounted for so you can avoid harsh penalties.
You’re Being Audited
Having an expert in finances is always better at any stage of your business’s lifespan. Tax season is full of risky mistakes that can cost you. A second pair of eyes can come in handy when it comes to filing tax forms.
CPAs are proficient in navigating tax season. You can rely on them to file your personal and business taxes so you can protect your company from tax errors.
Your Taxes Are Complex
Any major life event or change can affect your taxes. Divorce, marriage, having a child, or buying a home can impact your filing status. Such life changes can also lead to changes in deductions and credits you’re entitled to.
Getting expert accounting services can help you stay organized. One of the major benefits of hiring a CPA is saving time. Time is a valuable and limited resource, even more so if there’s been a major adjustment in your life.
Are you looking for CPA tax services? Check out this CPA accounting firm.
Hire a CPA Today
Anything from starting a business to huge life changes could affect your tax requirements. A CPA can help you navigate complex tax situations and avoid costly penalties. If you’re feeling overwhelmed, consider hiring a CPA.
Did you find this article helpful? If you’re looking for more finance tips, we got you covered. Check out our other blog posts for more guides on managing your finances.
