Ask around and you’ll find that most people on this planet have no clear idea of how to manage their finances. However, so many people who need help fail to see how a personal accountant could help them reach their financial goals. If you’re struggling to make yourself a financial plan, then you need to talk to an accountant who can set you on the right track and ensure you meet your goals.
Here are four things to ask yourself when considering whether or not to have someone help manage your money.
1. Can You Follow Tax Laws?
While you might be a clever and savvy person with your finances, tax laws are changing all the time. Keeping track of what’s changing and how it impacts you is basically a full-time job. That’s why hiring a personal accountant could be exactly what you need.
If you’re not paying attention to what’s happening in the world of tax law, something important could slip right by you. Since the USA has one of the most complicated tax codes on the planet, it’s no wonder that most people fall behind on taxes or owe money without knowing it. You need help from someone whose life work it is to know what’s happening, what’s changing, and what you can do about tax laws.
Hiring an accountant means that you’re hiring someone who makes it their life’s work to follow what’s new in the world of tax laws and what could trip you up. They’ll also know about all the hidden benefits that you might overlook while you’re struggling to juggle your receipts and invoices. If the idea of looking through the IRS website just for kicks is a revolting idea, then you need to get a tax lawyer on your site.
2. How’s Your Credit?
One of the reasons to keep up with managing your money is to be able to improve your credit rating. Paying your bills on time, paying off your credit cards, and managing your money connects directly with your credit score. If you want a better credit score, getting a personal accountant could help you.
Many of us lose sight of where our money is going from month to month. Even if we get a raise and start making more money, our lifestyles often adjust to stretch into that new bit of room freed up by more money. This doesn’t help our credit scores and can often end up hindering them.
Keeping bill collectors off of your doorstep is one of the most common and well-known ways to help your credit but there are also other tactics that help. Accountants know of the tactics that result in an improved credit score at a much faster rate than you would just by paying down your credit lines. If you’re looking at a major purchase like a house or car in the near future, you want to get your score up for the best possible financing rate.
Your accountant can help you get your credit score up and also give you some parameters for how much you can really afford to take out in loans.
3. How Are Your Investments?
If you work with a stockbroker, they’re going to give you all the tips they can to try to help your business grow. Even if you tell them your limits of how much you want and can afford to spend, they’re going to try to stretch those limits. That’s what they do.
Working with an accountant can help you understand how those investments impact your overall financial future. If you’ve got other holdings, like real estate investments, they’ll talk to you about how much you can afford and what decisions you can make.
Perhaps home prices are about to plateau and selling now will ensure you’ll be able to invest somewhere else. Maybe you’re losing money on some investments and it’s costing you too much to maintain them. Regardless of what your investments are, your accountant is looking at facts and figures and will offer a smart assessment based on that.
If you’re looking for financial freedom or a way to retire, your accountant is there to help you forge a path to that.
4. Are You Self-Employed?
Many people choose to be self-employed rather than sign a contract with a specific employer. In some industries, it’s far more lucrative to be freelance than to work in a specific office. Being self-employed could earn you a lot of money but with the help of an accountant, you can be sure you’re paying your taxes on time and building wealth.
Some people who are self-employed get paid through multiple sources and channels of income. Every different industry has its own rules and laws when it comes to how much tax should be paid and what can be written off. If you’ve got multiple W-2s, 1099s, or other forms to file, having an accountant can be a major help to you.
When you’re self-employed or you have your own business, an accountant ensures that you’re balancing your books from day to day. Someone with financial insight helps to ensure that you never overspend on maintaining your business or acquiring materials for your work. You’ll know how much you’re spending to get the materials or pay for the laborto make the product so that you price your services or products fairly.
Most self-employed business owners forget to pay themselves, so a personal accountant can be a godsend.
A Personal Accountant Could Save Your Business
Since most small businesses shutter in the first five years, if you hire a personal accountant, you could ensure you’re in the minority who stay open. While its a struggle to handle your finances on your own, even when you’re working for a big company, lots of people have reasons they need help.
Before you file your taxes, check out our guide for the most common mistakes to avoid.
