Should I Hire a CPA To Do My Taxes?
When tax season rolls around, many people ask, “Should I hire a CPA to do my taxes?” The decision isn’t always easy due to the complexity of tax laws and the allure of maximizing deductions. Plus, hiring someone to take care of your taxes for you costs money, adding to the expenses of this stressful time of year.
Thankfully, you’re not alone. The experts at Landmark National Bank are here to help you navigate the process and understand the benefits of hiring a CPA. In this post, we’ll explore the pros and cons of hiring a CPA for personal taxes or your small business.
Benefits of Hiring a CPA
Expertise in Tax Law
CPAs (Certified Public Accountants) are well versed in the minutia of tax laws and regulations. They undergo rigorous training and must pass a comprehensive exam to be certified. This expertise is invaluable, especially if you have a complex tax situation, such as owning a business, having multiple income streams, or dealing with large investments.
Doing your taxes can be time-consuming, particularly if you’re unfamiliar with the latest tax codes. A CPA can save you significant time by handling all aspects of your tax preparation and filing while you go about your regular life.
Mistakes on your tax return can be costly, leading to penalties or additional scrutiny from the IRS. CPAs are trained to be meticulous, and hiring one can significantly reduce the chances or errors on your forms.
Maximizing Deductions and Credits
A CPA can help identify deductions and credits you may not be aware of, ensuring you only pay what you owe. You also will see more money down the road, as CPAs know how to maximize your tax return.
Representation in Audits
One of the biggest reasons why hiring a CPA to do your taxes can be helpful is potential audit representation. If you’re audited, having a CPA who is familiar with your financial situation can be a huge advantage. They can represent you before the IRS, providing you with a sense of security and peace of mind.
Other Factors To Consider
Cost of Hiring a CPA
One of the primary drawbacks of hiring a CPA is the cost. CPAs typically charge more than using online tax software or filing your forms on your own. However, investing in a CPA’s services can save you money in the long run, whether you’re a small business owner or an individual. Unless you have expert fiscal knowledge yourself, a professional will likely be able to maximize your savings beyond the cost of their services.
Finding the Right Fit
Not all CPAs are created equal. Finding a CPA who is well suited to your specific needs can be a challenge. You need to ensure they have experience with situations similar to yours and that their communication style matches your preferences.
Who Should Hire a CPA?
If any of the following situations apply to you, the benefits of hiring a CPA are especially valuable:
- Complex finances. If you have a complicated financial situation, such as freelance income, investments, or rental properties, a CPA can help.
- Major life changes. Life events like marriage, divorce, having a child, or buying a home can significantly affect your taxes.
- Previous tax issues. If you’ve had issues with the IRS in the past, a CPA can help you navigate these challenges and avoid future problems.
- Small businesses. Hiring a CPA for your small business can help you maximize your company’s deductions and avoid potential tax issues.
Get Expert Advice From Landmark National Bank
Landmark National Bank provides expert assistance and financial services for a variety of needs, ranging from checking accounts and savings accounts to more complex offerings like personal loans. Whether you’re looking for a little assistance during tax season or help with other issues throughout the year, we’ve got you covered.