Why You Should Hire an Accountant for Your Personal Finances
Hiring an accountant for your personal finances may seem like an unnecessary expense, but often times your accountant will save you more money than the cost of hiring them. By hiring a professional to manage your finances, you'll be able to rest easy during tax season and beyond.
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While it can be simple to use tax preparation software to prepare your own taxes, about 21% of paper tax returns have errors according to the IRS. This isn't necessarily because the software is ineffective, but rather it is easy for a software program to overlook details that the human eye will analyze. As tax laws are complex to understand and even more difficult to implement, an accountant is a trained professional who will address those small details you may have overlooked.
The cost of hiring an accountant varies depends on a variety of factors including where you live, the size of the firm, and the services you need. At Practical Accounting Solutions, we offer you competitive prices with the best customer service and flexible scheduling. We understand you're busy during the day, so our hours reflect making your schedule a priority!
Hiring an accountant may be more beneficial to you if you have a higher income because your taxes will be higher. Because your taxes will be higher, an accountant can help you save a larger portion of your income and potentially find more deductions. The Alternative Minimum Tax method was created to ensure high-income taxes were being taxed fairly compared to middle- and lower- income households. If you earn above a certain bracket, more deductions are available to you. As previously mentioned, an accountant can help you find additional tax deductions that software may not catch especially if you have multiple sources of income.
In the case you are audited, an accountant is handy to help you navigate your finances and guide you through the audit process. Those who have a sudden increase in income or no income at all are more likely to be audited, so this is not a case you should be particularly concerned about. However, in the case your are audited, especially if you are a business owner, an accountant is a helpful tool to have.
Lastly, your accountant can help you plan for big life chances that will affect you financially. Whether you plan to buy or sell your house, start a business, or save for retirement, your accountant can help you realistically approach your financial goals.
The bottom line
While hiring an accountant for your personal finances may seem like a large expense, it may be the best choice depending on your income and lifestyle. Contact us at Practical Accounting Solutions today to get started on planning your finances!
10705 Courthouse Rd #116, Fredericksburg, VA 22407
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