6 Ways Hiring a CPA Can Actually Save You Money
As with most any other professional advisor or consulting service, hiring a professional to help with tax planning and filing comes with a price tag. You may be surprised though that the investment may not only provide peace of mind, but it could actually end saving you significantly in the long run.
Certified Public Accountants (CPAs) are professionals who specialize in providing financial and tax services to businesses and individuals. They are trained to help clients save money by identifying opportunities to reduce taxes and minimize expenses. They go through extensive requirements to not only initially obtain a CPA license, but then also maintain it. To maintain a CPA designation, a professional must also complete ongoing Continuing Professional Education (CPE) to stay current on both legal and ethical components of their field.
Here are 6 main ways a highly trained and experienced CPA can help you save money:
1) Tax Planning and Preparation:
A CPA can help you plan your finances throughout the year to take advantage of deductions and credits. Planning ahead and working with a CPA can help to maximize your refund or at least minimize your tax liability.
2) Identifying Deductions and Credits:
CPAs are well-versed in tax laws and regulations and can help identify deductions and credits that you may be eligible for but may not know about. With laws constantly changing, it's important to work with a professional who can help keep you compliant with IRS regulations, while still maximizing your tax savings.
3) Business Expense Tracking:
For business owners, a CPA can help you keep track of your expenses, ensure that you are taking all the deductions to which you are entitled, and help you implement financial systems and processes to improve your bottom line.
4) Retirement and Estate Planning:
CPAs can provide advice on retirement and estate planning options to help you save money in the long run. For example, they can help you identify the best retirement plan lines of business for your company's situation, or when and how much to contribute to the plan. They can also help you plan your estate to minimize taxes and maximize assets for your beneficiaries. The best approach is often to partner with a team of tax and financial professionals who can work together to with you to seamlessly strategize your retirement and estate plan because CPAs are not often licensed to provide advice on where to actually invest your assets. Licensed brokers at The Legacy Guardians can work directly with your preferred CPA and/or Financial Advisor, or help connect you with a well-trusted partner, if you prefer.
5) Spotting Potential Financial Issues:
A CPA can also help you identify potential financial issues early on, such as cash flow problems or accounting discrepancies, which can help you take corrective action before they become major issues that could irreparably harm your business.
6) Advising on Investment Opportunities:
They can also provide expert guidance on investment opportunities, such as helping you identify the benefits of utilizing a combination of pre and post tax investments for retirement. A CPA can also help identify key timing strategies for investing or withdrawing, to minimize your tax burden and stay compliant with IRS regulations. One example may be regarding your Required Minimum Distribution, which in recent years, has had multiple changes to the required starting age. This is another great opportunity where The Legacy Guardians can team up with your CPA to support your financial goals.
By utilizing the services of a CPA as part of your financial planning team, you can make more informed financial decisions, save money on taxes, and improve your chances of reaching your financial goals. They can provide a valuable service to both businesses and individuals, by providing advice, guidance, and helping you make the most of your finances.
Looking for a new CPA? Working with someone you can trust is critical. Contact us at The Legacy Guardians for referrals to some of our most trusted CPA partners. We'd love to help build and be a part of your financial planning team, give us a call today.