There are so many reasons to hire a professional accountant. Here are just a few of them.
9 reasons to hire an accountant
#1. You have a small business
Small business owners can benefit tremendously from having a good accountant on their side, particularly if their plates are already full with everything else.
An accountant can help a small business file necessary compliance and legal documents, take care of payroll, maintain records, prepare annual statements and more. Accountants are particularly helpful when it comes time to pay taxes, saving you time, stress and money.
#2. You’re starting a small business
Not only can an accountant help to keep an existing business running smoothly, but they can also help new businesses get off to the right start.
When they’re just starting out, small business owners are looking to save money in every possible way. However, the one thing a small business owner should never skimp on its accounting.
Believe it or not, hiring the right accountant could actually help you save money while you’re getting your business up and running. You’d be surprised at how quickly fees stack up when things are done improperly.
#3. You want to pay off debt
A lot of people think that only super-wealthy people can benefit from working with an accountant. But, the truth is that accountants can do a lot for people who are looking for help getting out of debt and living within their means.
Working with an accountant certainly won’t be free, but depending on your situation, the right strategy could help you save hundreds, if not thousands of dollars in interest. It could also help you get out of debt sooner.
#4. Your taxes are complicated
Are you self-employed? Do you have multiple streams of income? Do you receive income from an investment? If so, your taxes are likely to be a lot more complicated, and hiring an accountant can make all the difference.
Hiring an accountant to help with complicated taxes will give you peace of mind in knowing that the job is done the right way. It can also save you money, as a good accountant will help you avoid paying a cent more than you need to.
Complicated taxes are also more likely to end in an audit, in which case, it’s definitely good to have an accountant on your side.
#5. You make more than $200,000 a year
Speaking of audits, did you know that your chances of getting audited go up by quite a lot when your income starts exceeding $200,000 per year?
Your chance of getting audited, if your income is less than $200,000 a year, is about 1 in 250. If your income exceeds $200,000, it’s about 1 in 100. And, if you earn more than a million a year, it shoots up to about 1 in 41.
No matter how much you make, getting audited is scary. Having an accountant there to walk you through will help you get the best possible outcome and give you peace of mind.
#6. You’re receiving an inheritance
Many people are under the misconception that getting an inheritance is a relatively straightforward thing, and are surprised to learn that there’s actually a wrong way to go about it.
If you’re receiving a large inheritance, you should know that going about it the wrong way could result in a lot of taxes, as well as a higher future tax rate.
Under the guidance of an accountant, you can avoid having to pay more than is strictly necessary, while also reducing your tax liability in the future.
#7. You want to give a large gift
Want to help your adult son or daughter pay for the downpayment on their new home? This is just one of the many examples of a time when you’re making a large monetary gift, and believe it or not, the IRS expects taxes to be paid on gifts.
What exactly is considered a gift? Anything that you don’t expect to receive fair payment for. This can include money, but it also includes anything of monetary value, like property and investments. Any time a gift exceeds $15,000, the Gift Tax applies.
An accountant can provide you with different options for reducing the amount of tax you’ll have to pay on your gift.
#8. You’re buying a business
When people think about becoming a business owner, they often imagine building a business from the ground up. However, some people become business owners by buying a business instead.
Before you bite the bullet and make the decision to purchase a business, it’s always a good idea to consult with an accountant.
An accountant can check for an outstanding debt the business may have, see whether the company owns and leases assets (like equipment) and more.
#9. You’re selling a business
Even if you’ve managed to handle your books on your own up until this point, if you’re planning on selling your business, it never hurts to have an experienced accountant behind you.
At the very least, an accountant can help you structure your finances in order to walk away with the most money after the sale. However, an accountant can also work with your buyer’s accountant to make sure all the boxes are checked, as well as help you get your records in order.
These are just a few of the many instances when it’s beneficial to have a reliable accountant on your side. But, it’s important to realize that not all accountants are made equal.
Hiring the right accountant can help you save the most money and give you peace of mind, but how do you ensure you’ve found the right one? Top Rated Local® can help.
With Top Rated Local, you can read account reviews from verified review sites across the web, compare accountants near you side by side, view accountants’ overall online reputations at a glance and more.