If you’re a small business owner or self-employed, you probably already know the value of having a professional do your taxes. However, even if your taxes seem straightforward, there’s a lot to gain from hiring a certified public accountant (CPA).
Read on to learn 4 reasons you should hire a CPA for this year’s filing.
Changing Tax Laws
Tax laws are constantly changing, and basic tax software isn’t enough to guide most people through the process, especially if you have multiple sources of income. Having a professional do the hard work for you can save a lot of time and frustration down the line.
Moreover, having a tax professional on your side is so essential when you’re an individual or business with a high risk of an audit. This often includes those who have over $200,000 of annual earnings, those who own their own business, or individuals who’ve ever made a mistake filing on their own.
CPAs understand the language of the IRS in a way that the general public just can’t. Even the smallest requests from the IRS can be pretty scary to a non-expert and, if handled incorrectly, can be a nightmare to resolve. A CPA isn’t just there for you for the once-a-year file, they can have your back in whatever else the IRS might throw your way.
Saving Money
A good CPA of course offers peace of mind knowing your taxes will be done right the first time. But despite the fees a tax professional charges to file on your behalf, a CPA can help you save a LOT in the long run. A tax return isn’t just about plugging in numbers. It involves real strategy and long-term planning, and CPAs often have great insight on how to maximize your refund.
Retirement Planning
Speaking of saving money, retirement planning is one topic that can feel overwhelming for a lot of people. It’s confusing to know when you should or shouldn’t start tapping into social security — and what the tax implications might be.
For those who are still working while receiving social security benefits, the situation is even more complicated. A CPA can save you a lot of headaches in your filing and provide much-needed advice for your overall retirement planning.
Navigating Life Changes
A lot of major life changes come with tax implications. Whether you’re getting married, having a child, changing careers, or coming into an inheritance, your tax situation can become a little more complicated. These major events often mean more forms, different numbers of deductions and credits, and maybe even a totally different filing status.
A CPA can help you navigate these major life events, both during your filing and as an advisor ahead of any decisions with major financial implications.
Conclusion
For some people, taxes are a once-a-year thing they’re just trying to get through. But that one month of stress can have long-term implications if you don’t do everything correctly. A CPA can offer you peace of mind and financial gains that will last you long past April.