Top 5 Reasons to Choose a CPA to Do Your Taxes
Each year when tax season approaches, your stress level probably skyrockets if you don’t have a regular tax preparer. Jumping around from one “big box” tax preparation company to another can make taxpayers feel like they are floundering.
Working with the same tax professional ever year offers a sense of stability, and a place to go when you have financial questions all year long. However, picking the right tax preparer for you might feel overwhelming if you’re used to selecting an office at random.
In this guide, you’ll discover the top five reasons you should choose a Certified Public Accountant (CPA) to do your taxes.
1. A CPA can help you through an audit.
For many Americans, the mere thought of getting audited by the IRS is daunting. Fortunately for taxpayers who work with CPAs, these professionals can help their clients through the process.
If you receive an audit notice, simply let your CPA know, and he or she will be able to provide you with the assistance you need to present the IRS with proper documentation proving your compliance with the tax code.
2. Working with a CPA is more affordable than you may think.
Some people avoid working with local CPAs because they are concerned about the cost. In reality, however, working with one of these tax and accounting professionals is more affordable than you may think.
The U.S. Bureau of Labor Statistics shares that the median hourly wage for a CPA is $40. Additionally, some CPAs are willing to take their fees out of their clients’ tax refunds, which can help if your budget is tight.
It it worth noting, however, that this median hourly wage does not include extra fees that may be incurred for dealing with back taxes or other IRS problems.
3. A CPA is invaluable to small business owners.
If you are a small business owner, a CPA can function as an extension of your financial department. In addition to doing your personal and business taxes each year, you can turn to your CPA for bookkeeping services all year round.
Many CPA firms even offer additional services, such as fractional CFO packages. This can be helpful for small business owners who don’t have time to do tasks like budget creation and cash flow management on their own.
4. CPAs go through an extensive licensing process.
If you’re worried about entrusting your financial data to just anyone, choosing a CPA will give you peace of mind. In order to receive a Certified Public Accountant designation, a person must go through an extensive licensing process that includes several competency exams.
You can trust that any reputable CPA in your area has been thoroughly vetted by the state before accepting clients.
5. Your CPA will develop a relationship with you
Like any other service provider, such as a doctor or a lawyer, the better your tax preparer gets to know you, the better he or she will be able to assist you.
Whether you want to buy your first home, save for retirement, or ensure that your kids can go to college without taking out student loans, a CPA can help you reach your goals.
By working with the same CPA year after year, he or she will become familiar with your finances, and will therefore be able to provide you with the best possible tax planning advice. In the long run, this may reduce your tax liability, saving you money.
These are just a few of the reasons why working with a CPA can improve your financial life and take the stress out of tax season!
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