â€œDo I need a CPA?” this is undoubtedly one of the most common questions taxpayers ponder at tax time, along with, “Is there that big of a difference between H&R Block and hiring an accountant?”. With so many tax preparation options, new laws passed almost daily, and the rules changing as your life or business situation changes, it is a smart move to entrust your tax preparation to a certified public accountant.
Considering the education and training requirements necessary to become licensed and remain licensed as a CPA, in general, they are more qualified to prepare your taxes than tax personnel that works in your local H&R Block.
Certified Public Accountants must pass rigorous examinations after completing their college education to be licensed in the state they wish to practice. CPAâ€™s stay updated with regulatory and legal changes through mandatory continuing professional education requirements after attaining their license.
Additionally, as members of the AICPA and state CPA societies, certified public accountants must adhere to strict ethical standards to retain their licenses. CPAs who are also tax practitioners must adhere to even more stringent ethical standards.
Whether you are looking to save money, prepare your taxes, or plan for retirement, having an accountant who understands your situation is vital. We want to help answer some of the most asked questions when considering having your taxes prepared by a CPA. We will look at ten reasons why having a CPA in your corner this tax season is a wise investment for anyone, not just for businesses or those with hard to handle tax returns.
Revisions and Changes to Tax Laws
Even for people who stay up to date with financial news, understanding and putting new tax laws and revisions into action to work for you is a skill few have. For those who are skilled enough to understand how these laws change, sometimes the changes happen in such rapid succession that you will have missed it if you blink.
A CPA ensures they are on top of the latest news and trending information from the financial world, including tax laws, and can help you get the most significant tax benefits possible.
You Earn Over A Certain Amount Each Year
For those earning more than $200,000 a year, investing in hiring a CPA is a wise decision. Top financial experts have rallied that top earners are more likely to be audited, as dubious as that sounds.
If you are selected to be audited, having a CPA with an excellent financial understanding on your side is invaluable. Should your case ever get as far as Tax Court, litigants will benefit significantly from hiring someone, such as a CPA, to represent them.
Multiple Sources of Income
If you have multiple income sources, an accountant can help you sort how to report everything correctly. Filing a return with multiple income sources is significantly more complicated than if you only have one W-2 record.
Allowing an accountant to handle your return, even if it seems relatively straight-forward, can be advantageous in the long run. People attempting to file tax returns on their own regularly leave thousands in owed money on the table each year.
You are Self-Employed
If you own your own business or are self-employed, an accountant can be an invaluable resource. A certified public accountant who is brushing up regularly on the tax laws will find tax breaks that may have missed otherwise, and any significant write-offs offered to the self-employed you may not be aware of.
A New Business Venture
If you’re thinking of starting your own business, an accountant can help you prepare. Business entity types vary greatly, and all come with their own unique risks and rewards. By allowing a CPA to assist you with your business entity formation, you can be confident that your business is starting off on the right foot and is being set on a path to reap the most benefits as possible from your entity choice.
You Own Real Estate or Rental Properties
Did you know that there are specific tax situations tied to rental properties and some significant benefits? If you are a property owner, having an accountant walk you through what you are entitled to can help save you money and, in many cases, even put some extra cash back in your pocket, where it belongs.
By hiring a CPA, you ensure you’re getting the most out of your return each year. Your accountant will help you plan for the upcoming year, considering your mortgage and rental concerns and ensuring you are on track to get back every penny owed to you.
A Life Change
If you’re about to incur a notable life change, or you recently have, such as a marriage, divorce, or adding to your family, an accountant can help lead you through the financial transition.
Anytime one of these major life changes occurs, so does your tax situation. An accountant will help you navigate the adjustments regarding your fiscal well-being, taking much of the burden and the additional stress of an already taxing time off you.
You Owe Back Taxes
If you are in a position of owing back taxes to the IRS, it’s essential not to delay contacting an accountant to assist you. They will help you understand what you owe and instruct you on avoiding any future issues. A good accountant realizes how intimidating it can be to find yourself in a situation such as this. A reputable CPA will stand up for what is ethically right and help you get your life back to normalcy as quickly as possible.
To Save Time
Attempting to file your taxes yourself is excessively tedious, which means it is also time-consuming. If you value your time as much as your money, if not more so, hiring a certified public accountant may be a fantastic investment.
A CPA will ensure your return is done right the first time, filed correctly and that you’re getting the most out of your tax return. They will also assist you with any questions you may have regarding your finances for the upcoming year.
To Save Money
Our number one reason we believe you should consider hiring a certified public accountant is simple: Money.
A highly skilled accountant will know how to make sound decisions when preparing your taxes, helping you choose a business entity or setting you up for a fruitful retirement. By beginning to file with an accountant now, you will be better able to make financial decisions down the line.
The Bottom Line
Most people end up going to a Jackson Hewitt or H&R block because of cost-factors and expediency, not because they think they will get expert advice. We are proud to meld practicality and affordability with specialist knowledge, ethical codes of conduct, and a drive to see our clients succeed. At Cappelle Accounting, we provide superior services at a competitive cost and pride ourselves on quick turn-around times, accuracy and customer satisfaction.