Whether you’re a small business CEO or a homeowner, taxes and finances get to us equally. The practices may differ, and handling company financial plan proves to be more complex, but in the end, it’s something we all have to deal with.
Naturally, when you hire an accountant, it’s to do your yearly taxes, to save you the headache. But did you know through several simple acts, they can actually make you money?
Your Accountant Can Become Your Financial Best Friend, and Here’s Why
#1. They Work Faster
Now, this seems like a no-brainer. You do your taxes once a year. They do it much more often and probably for a longer number of years. This means that they are not only more skilled but much, much faster.
And if we’re being honest, there is no shame in the fact, as a faster accountant will actually be much cheaper in the long run – they save you time and resources. Along with that, they can teach you how to become much faster yourself – or at least, how to make this yearly job easier for them.
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#2. Legal Loopholes
It sounds illegal, but it isn’t. For laymen like us, the financial language is convoluted and aside from doing our taxes, we’ll rarely dabble in actual legalities that have to do with our life and business.
An accountant, on the other hand, can find ways to increase our income (as a business could probably earn more through tax returns than revenue), by showing us all the nooks and crannies we would never look into on our own. Like how to file your business trip properly so it shaves off some of the expenses or what you can and can’t claim.
#3. On Deductibles…
If you wrote off a part of your home as a deduction because you work from home and have your office space, be aware that the IRS loves hunting down these loopholes. Sectioning off a room or an entire floor as „office space“ for a deductible, means no speck of your personal life should be within that space.
Your kid’s homework project printed on your printer, the photoshopped greeting card for the family, and a downloaded book even will immediately take down the write-off. Your accountant will be able to tell you what can or can’t be written off as a deductible, ensuring you don’t get into legal issues that could cost you a fortune.
#4. They Also Teach You
Experienced accountants are also great mentors. If you manage to find someone who is willing to teach you the basics, and then essentials to keeping your business spotless, you’re on a great path to earn money by saving it!
A good accountant needs to be objective about your finances. They have no emotional attachment to your property, or bank account balance, so you know they’ll share all possible options; be it refinancing your mortgage, going through your health care plan or others.
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In their long years of business, good accountants will have also seen hundreds of businesses and families alike. Chances are that no case will be new to them. So when you lay out your basic information, and you go through the books and issues you have together, they’ll know exactly what to do.
And if you have a small (or big) company, your accountant will most likely be able to share insight on the practices of other companies in the same industry and what worked for them.
Taxes, mortgages, refinancing… it’s all a big headache for 90% of the working population. Not to mention we’ve all heard scary stories of people who were summoned by the IRS for an audit over some contract or rule they broke without even knowing it. And it feels like the odds are stacked against us, unless we learn everything we can about accounting, but we’d be wrong to assume that.
A good accountant will make you money by helping you save it, be your safety net when you suspect a financial problem and a great advisor on any aspect of your revenue.