Even though there are several online tools and smartphone apps that you can use for your personal and business finances, it’s a good idea to rely on the expertise of a Certified Public Accountant (CPA). While you’ll have to pay a CPA for their services, it’s usually worth eliminating the frustration and wasted money that comes with mishandling your finances. As SDA CPA Group puts it, “running a small business can be challenging. Your accounting shouldn’t be. So how exactly can a CPA help you?
Tax Time
No matter if you own a business or if you’re only doing your personal taxes, a CPA can help make sure that you file your taxes correctly and see to it that you take advantage of all available deductions and tax credits. In the event that you fill out your taxes incorrectly, they could be sent back to you to fill out again, which can result in you turning them in late and having to pay fees. Something else to think about it that a CPA can help you avoid being audited.
Tax Planning
Rather than looking at your taxes as something that you do once a year, it’s better to look at them as something you’re working on the entire year. A CPA can give you advice throughout the year about how to run your business or decisions that you can make in your personal life that can lower your tax bill. It’s best that you visit a CPA every few months to discuss what’s going on in your business and personal life that can influence how much you owe on your taxes.
Personal Finances
Even if you think that you already have a good grasp on your personal finances, a CPA can help you to better structure your spending and saving habits. If you’re not so good at sticking to a budget or developing good spending and saving habits, a CPA can become your new best friend. Talk with your CPA about saving up for retirement and putting money back in your savings account. Even when it seems like you no longer have any corners to cut to save money, a CPA might be able to help you find a way out of your financial hole.
Business Decisions
Business owners will do well to discuss their business options with a CPA in order to see which route is the best for them and their business. No matter how well you think that you know the market or industry that you’re in, a CPA can offer a unique perspective and information that you may not be aware of. You also have to think about the fact that a CPA doesn’t have the same emotional attachment to your business that you do, which means that they can help you to make a more objective business decision.
Save Time
Doing your own taxes and handling your own finances may be less expensive than turning to a CPA, but the time you spend taking care of those tasks is time that you could be spending growing your business or enjoying other things in your life. How much time do business owners spend every month handling their own finances? Imagine the improvements they could be making to their business if that time were spent thinking of new marketing ideas, researching new products or improving their online presence.
Developing a Relationship With Your CPA
While a CPA can make your life easier, there’s a certain type of relationship that you should have with them in order to get the most out of their services and expertise. First of all, you should always be honest with your CPA about your life, your finances and your business no matter how personal or embarrassing those details might be. Your CPA is there to help you, not judge you. Your complete honesty and cooperation is the only way that they’re able to truly help you. You should also let your CPA know what kind of help you’re looking for when you first meet them. Doing so will help give them a better idea of how they can best assist you.
To find a CPA in your area, check out the AICPA website.
