If you’re a business owner, have a complex financial portfolio or just get the jitters at the thought of Tax Day, you could greatly benefit from the services of a tax accountant.
People who engage a tax accountant find life easier for many reasons. Let’s discuss five of the biggest benefits.
1. A Tax Accountant Can Give You Peace of Mind
Business owners and individual taxpayers alike tend to stress over taxes, wondering whether they’ve dotted their I’s and crossed their T’s. The combination of paperwork, math and a looming deadline can be overwhelming. And there’s always that fear. Will this be the year you get dinged?
With stress comes procrastination. Some 20 to 25 percent of Americans put off tax preparation until the last 14 days before deadline. This last-minute cramming causes even more worry. It’s a vicious cycle, one that can be broken by bringing some fresh perspective into the picture.
A tax accountant approaches your taxes with expertise instead of dread. While you take taxes personally, they know that processing your return is just business as usual for the IRS.
They also have some reassuring information. Most of us owe no taxes and, in fact, eight out of ten refunds filed in 2013 yielded a refund, according to IRS data. Auditing fears are also largely unfounded. Only 1.1 percent of individuals who filed tax returns in 2010 were audited, and these were typically millionaires or very high-earning business owners.
A good tax accountant won’t put off preparing your taxes, because they know the outcome is likely to be in your favor. They’ll certainly never miss deadline, given their work life revolves around April 15!
2. A Tax Accountant Can Bring You Savings
A good tax accountant, like those at the Cedar City-based AA Tax & Accounting Services, LLC, knows exactly what you can use as a tax deduction or business write-off. In fact, if you’re a business owner, you can even write off the money you pay for tax strategy or tax preparation services.
Provide your tax accountant with thorough financial records and they’re likely to find expenses you never knew you could write off. Did you know, for instance, that you can write off any dry-cleaning fees you rack up during a business trip?
3. A Tax Accountant Can Create Clarity
Your tax accountant can help you navigate complex financial dealings. If you own a business or rental properties, or have a “side hustle” like driving for Uber,” you’ve likely moved beyond Turbotax territory. A tax knows how to depreciate business or real estate assets so as to decrease your tax burden.
4. A Tax Accountant Can Help You Reach Your Goals
Are you planning to sell some real estate? Your accountant can help you minimize the taxes you pay on the proceeds from property through mechanisms such as like-kind exchange.
If you want to put aside money for your children, either through a 529 plan to fund their education or through a trust, your accountant can help you decide the best methods for tax-deferred or tax-free saving. As an example, your tax accountant can help you categorize expenses charged to the trust fund in a way that nets the greatest tax benefit.
5. A Tax Accountant Can Help You Navigate Life Changes
Filing your tax return may have become relatively easy for you over the years. Divorce, however, can change a lot. A tax accountant can help you move from joint filing to individual, and incorporate any payments or expenses like alimony and child support. If you receive an inheritance after a loved-one’s death, your tax accountant can also help you work with the intricacies of settling their estate.
Whatever your portfolio and whatever your situation, there are countless ways a tax account can help you navigate your dealings with the IRS. Consider consulting an expert whose know-how can replace stress with success.