Client Portal
Whether or not to use a CPA isn’t always clear-cut. Believe it or not, the question gets asked frequently. At Edgewater CPA Group, we’re experts in accounting and finance. Throughout our time serving customers in the Evansville and Carmel areas, we’ve compiled a compelling list of reasons to hire a CPA. Here are the first ten (the next ten will be covered in the next blog).
1. The Opportunity Cost
Opportunity cost is an economic term that is basically defined as the difference between the cost/benefit (win/loss) of choosing one thing over another. In this case, does the benefit experienced in utilizing a CPA outweigh the benefit of creating financials and filing taxes yourself? If the benefit gained from using a CPA is better, then that is the better option.
2. Real Estate and Rentals
Rental properties and real estate investments come with tax implications, both in terms of write-offs and taxable income. If you own a rental property or made a novice real estate investment, you can be confident you are reaping all the benefits for these holdings when you hire a CPA.
3. Inheritance
Inheritance tax, as well as specific taxes on asset transfers, can be overwhelming. Life insurance policies, retirement accounts, and property transfers have varying costs and benefits.
4. Credit Rating
Believe it or not, an accountant might be able to spot ways in which to improve your credit score. It’s not something you may have considered as a benefit of using a CPA, but the opportunity definitely exists.
5. Income Greater Than $200K
Most financial experts agree that you are more likely to be audited if you make more money. Either way, having confidence in your financials and tax filings creates security and peace.
6. Significant Financial Gift(s)
When making a financial gift, you’ll want to ensure you leverage the best tax benefit available to you. An accountant understands this and will provide insight. They can also help with the amount and timing of the donation that yields the greatest benefit.
7. Startup Businesses
Even the most basic startup business requires thoughtful tax preparation. The type of business structure you have is also a tax determinant. Local, state, and federal taxes apply to all types of businesses.
8. Investments
Even savvy investors need help when it comes to taxes, especially capital gains. In addition, cryptocurrency investments add to the complexity of investments and tax filing.
9. Owing Back Taxes (Ugh)
Nobody wants to owe the IRS. CPAs understand how daunting it can feel to experience an audit or deal with communicating with the IRS over back taxes.
10. Self-Employment
Self-employment through owning your own business or working as a 1099 employee carries benefits and tax implications. There are some write-offs available to you, and you’ll want to make sure you address everything that applies to you.
The Bottom Line
Hiring a CPA at Edgewater CPA can save you time, money, and stress. If anything covered in this article applies to you and you’d like to schedule a consultation, call us at (888) 317-4835.