When the time comes to deal with the tax man, there are many people who believe that doing things by themselves or by purchasing easy-to-use software is a sufficient way to handle this issue. That might save some money at the time, but the amount that a CPA can save over a much longer period of time is a reason to consider using their services.
That consideration takes into account not only the cost of services, but the cost-saving measures that could potentially result for both an individual and a business. For people with busy schedules who could lose money by attempting to handle such tax matters, it’s something that seems obvious.
Some of the ways that a CPA can keep money in the pocket of clients include:
- A CPA is an expert on most tax laws, which means that they’ll be able to spot potential savings on a tax bill or add to a refund. Their job entails keeping abreast of all new facets of the tax code, so they’ll have a current grasp on what their clients have at their disposal. As licensed representatives of the accounting industry, they are bound by regulations that prevent them from offering bad or illegal advice on how to save on taxes. In addition, they are much like lawyers in that they keep any information provided to them by a client in strict confidence.
- For a business, deductions for such things as lunches and dinners can sometimes be tricky to navigate, but a CPA will be able to determine the validity of any such action. In addition, estimated taxes and choosing when to pay them can end up offering savings that the average person would be unlikely to know about. In each of the above cases, the cumulative effect of not having a CPA to create awareness can mean thousands, and sometimes even millions, can be left on the table for the IRS to quickly return to their coffers.
- When it comes to proper financial planning, employing a CPA can help set the stage for cost savings that might allow for an earlier retirement or with everyday factors like a new marriage, children’s education, legacy issues or the expansion of a business. This can be related to pertinent tax issues, but also can focus on the need of a CPA’s client to effectively budget or make the right investments that will help solidify that person’s financial situation.
Penny wise and pound foolish might serve as the proper adage for those who choose to go it alone come tax time, given the potential savings of using the services of a licensed CPA.