5 Compelling Reasons to Hire an Accountant
If you’ve filed your own taxes for years and don’t know much about finance, it may have never occurred to you before to hire an accountant. Accountants aren’t just for business owners; they help individuals, too. Whether you’re interested in pursuing your own masters in accounting online and you want a feel for the types of individuals who will comprise your clientele or you’re looking for accounting advice yourself, it helps to know when to hire an accountant.
You could go years without needing an accountant’s help to file your taxes if your income is straightforward. However, the more complicated your income tax situation is, the more difficult it is to file your income taxes correctly if you don’t understand the tax code. Some examples of tax complications that you should contact an accountant about include:
· Several income sources, including selling items on online auctions, getting an additional job or doing freelance work on the side
· Being self-employed
· Accruing a large number of medical bills to be used for deductions
· You’ve gotten married or divorced or have become widowed in the past year
· You have a new dependent
If you don’t understand something about your income taxes, run it by an accountant.
If you’ve inherited money or property in the past year, meet with an accountant immediately. The inheritance may or may not require you to pay additional taxes, depending on its value and current tax codes. If you have to pay taxes, an accountant will determine how much so you can put the money aside or pay the taxes as soon as possible.
If you can’t sustain the payments on a mortgage or car loan, you’ll go into default and lose both the property and the money you invested into it. If you’re interested in making a large purchase, such as a home or car, meet with an accountant to determine if your income-to-debt ratio is ideal for the purchase at this time.
An accountant will have a more realistic view of what you can and can’t afford. You may not be able to afford the house or car you want right now, but the accountant can give you a more accurate price range you could afford or counsel you on how to get yourself to a financially comfortable enough position in order to purchase your desired property in the future.
Mindful Money suggests you hire accountants when you hope to start investing. Accountants spend a lot of time researching the state of the economy and are more likely to spot a good investment than someone who’s new to the market. You don’t have to take your accountant’s advice, but it’s a wise idea to run your investment ideas past a professional who can provide a reasonable guess of its outcome.
As with big purchases, the accountant will also examine your current income-to-debt ratio and tell you if you have the budget to make the kinds of investments you’re interested in.
A tax audit is stressful and scary for the average taxpayer, but it doesn’t have to be. An accountant will help you assemble the necessary paperwork and walk you through the auditing process. An accountant, as a third party, will also perform another objective check of your taxes to see if they spot any errors that may have triggered the audit — although it’s most likely that you were a randomly selected target. If the accountant spots an error, they will go over your payment options with you and steer you toward the best possible deal to pay as little as possible.
These are just a few of the circumstances in which a person should hire an accountant. Accountants play an integral part of running businesses, and they work in a variety of places, including banks, the stock market and individual companies. Hiring an accountant for a modest fee is the closest you can get to guaranteeing you don’t make a financial mistake that comes back to haunt you.