The 7 Reasons to Hire an Accountant
When it comes to managing your finances, you may feel like you've got a good handle on your money. You know your income and track your expenses, so why pay someone to do what you're already doing, right?
Unfortunately, this is where many people fail to build long-term financial success. If you're a working professional with aspirations and plans, an accountant can help you attain them. Here are seven reasons to hire an accountant for guidance with your personal funds.
Budgeting. Just because you've been budgeting since you were a teenager doesn't mean you're doing it to your full potential. By analyzing your finances, an accountant can help you maximize your budget and save more money.
Tax laws. Taxes are complex and always changing. Unless you're both passionate about and experienced with the breadth of tax laws, you can't possibly keep up with new legislation on your own.
Credit. An accountant can help you improve your credit rating, which will allow you to have greater financial flexibility when making investments.
Investment analysis. Speaking of investments, some accountants can also serve as investment advisers. Ask if yours has the right training and licensing to advise you on investments. Even those accountants who are not active in this niche will likely be able to refer you to a financial professional who is. And most accountants should be able to explain the tax implications of certain investments, even if they don't advise on investments.
Entrepreneurship. Starting a business doesn't mean taking the implied plunge of quitting your job and sweating out your expenses. Plenty of people start a business on the side simply by aligning an idea with a hobby. An accountant can take the mystery of uncertainty out of entrepreneurship by equipping you with vital knowledge of small business taxes, incentives, risks and cash flow.
Education. There is no better way to learn about personal finance than by having a designated resource. Being able to call your accountant with general questions or concerns any time of day is a major perk.
Perspective. It's hard for an individual to get a true perspective of their financial standing without having someone else outline everything for them. Your accountant will provide a snapshot of finances that will help you make confident decisions for years to come.