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Very few people are actually aware of the benefits of hiring a CPA to manage their finances. Although tax lawyers are much talked about and often hyped, their services are limited only to pulling up your tax returns and advising you on taxation matters. However, a CPA can help in many more ways - not only will a CPA sort out your tax returns but they can also give you general financial advice based on your current and past financial records. All of this comes for a much lower fee when compared to tax lawyers as well. Here are the top three advantages that you can expect from retaining a CPA accounting individual or firm:
They will advise you of little known tax benefits or implications
None of us is familiar with all the tax categories of the IRS and all the special cases, and exemptions and benefits that one can avail of. It is a CPA's business to be proficient in these matters, so when you hire one, you utilize all the benefits possible in your particular situation. As a simple example, you might not be aware of something called the Working Opportunity Tax Benefit - but your CPA will be and he/she will make sure that if you are eligible for it, you will definitely want to take advantage of it. Sometimes, knowing the intricacies of the tax code can mean thousands of dollars in tax savings to you.
Furthermore, if you are involved in real estate planning, and are looking to buy, sell, rent, or lease a property, your accountant can guide you through the entire process so that you get tax benefits in this situation also. Similarly, if you are trading in investment options such as shares, stocks, bonds, and derivatives - there are numerous tax clauses that are applicable that you might otherwise have not even heard of. However, proper CPA accounting will make certain that you get all the benefits that are applicable and let you reap the maximum benefit to which you are entitled.
They will be instrumental in organizing your finances
This is perhaps the most immediate advantage of hiring a professional accountant. An accountant will, first of all, organize and restructure your entire set of financial records in a simple, lucid and coherent manner. Your financial record does not have to be necessarily complex and dreary - it can be presented and documented in simple formats that professionals are well versed in.
An indirect advantage of organizing your finances is that based on the restructured data, your accountant will be able to chart you a roadmap for the future, involving tax breaks (if you have a business), potential financial crunches, how to avoid them, and more. Even if you are a working individual, your accountant will be able to advise you when to make the right real estate purchases (or sales).
They will file your tax returns
This is an obvious benefit that comes with the CPA accounting package but represents a tremendous benefit to you. Your accountant will ensure that your tax returns are properly executed without discrepancies. This is essential as any inconsistency or error in tax returns can lead to a lot of problems. You might wind up paying a fine, or in worst case scenarios, face jail time. Nobody wants that - hence hiring CPA accounting services is a wise business decision whenever you get the feeling that your finances are not quite under your control.
