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With the dust settling on tax season, many people start wondering if they should consider hiring a tax accountant to handle their taxes for them, or continue to struggle to do their taxes themselves again.
Now is the perfect time to audit your own tax practices, because after-tax season ends, many accountants actively seek business and have more availability, making it cheaper to begin considering employing their services.
Let’s explore different types of situations in which working with an tax accountant would be beneficial:
When to Hire a Tax Accountant?
There are specific situations when hiring an accountant is a must. Here are some cases when you should consider hiring an accountant:
Simple Tax Returns:
Even if your tax return is relatively simple, it might be helpful to work with a professional accountant to verify that everything is accurate and that you are not overlooking any potential deductions or credits. A tax accountant may help you find areas where you can save money or improve your financial status, even if you do a primary tax return independently.
Additionally, some individuals simply prefer the ease of working with an accountant, and outsourcing your tax preparation will save you a considerable amount of time if you have a busy schedule.
Related: 7 Smart Year-End Tax Planning Strategies for Small Business Owners
Corporations:
Every entrepreneur and business owner should have a robust financial department or have an accountant available to them, when running an S company. Working with professionals will help reduce your tax liability, make you aware additional tax breaks which the average person is not expected to know, and ensure complete legal compliance.
Related: Top 15 Massive Tax Deductions and Write Offs for Businesses
Sole Proprietors and Independent Contractors:
Self-employment taxes can be confusing, and an accountant can help you optimize the deductions a sole proprietor or an independent contractor might be entitled to, and ensure the complete division of your personal and business tax obligations.
Related: Taxes for the Independent Contractor: Deductions, Credits, and Forms Explained
Dealing with Stock Options:
We recommend seeing an accountant if you exercise stock options. Stock options such as NQSOs and ISOs are more common, but mistakes can be costly. A small error could cost you thousands or even tens of thousands of dollars, and cause issues with the IRS down the line.
Related: Take Control of Your IRS Tax Debt: Five Ways to Handle IRS Tax Debt
The pros and cons of working with an accountant to handle your taxes depends on your unique situation. While it may not be necessary for some, it can be precious for others, and this information can assist you in making an informed decision. Additionally, you can schedule a FREE consultation with the Better Accounting Solutions team to see if it’s worth it for you!
We're so happy you found this article informative! Head back to our blog page to learn more tips, tricks, and guidance on accounting to maximize your business's growth and development.
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