The Benefits Of A CPA
Posted on: 21 August 2015
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Tax season is never a fun experience. Between the mountains of paperwork and the large amounts of money that are involved, it's easy to make a small mistake that could end up costing you quite a bit of money. Therefore, you might be looking for a way to make the whole process simpler, safer for your wallet, and less stressful for you. To make your life easier, you should consider hiring or consulting a CPA.
What is a CPA?
A certified public accountant (or CPA) is a financial advisor/planner that is licensed in a certain state. The licensing process ensures that you can rely on any CPA to be competent and knowledgeable in the field.
Each state has different requirements because each state has different tax laws, so you should ideally search for a CPA that is licensed by your state to help. This isn't a problem when you are walking into brick and mortars, but it can be easy to overlook the location when you are browsing online.
Why use a CPA for your taxes?
A CPA can help you in all aspects of financial planning of your life. For most people, this means help filling out tax returns and understanding how different deductions and refunds work. With a CPA, you can save a lot of money on your taxes. In many cases, these savings outweigh the cost of hiring a CPA.
How does hiring a CPA work?
While wealthier individuals and larger businesses might hire a CPA to work exclusively for them, most CPA's offer their services to the average consumer on an appointment system. When you hire a CPA, the process is similar to hiring a therapist or lawyer. Every once in a while, you will visit them and take advantages of their financial planning knowledge in exchange for compensation, which is usually a combination of hourly and flat fees.
What else can a CPA do?
Although taxes are their biggest drawn, a CPA can also provide a great deal of insight and expertise on budgeting and estate planning, which are also extremely important. Proper home budgeting habits aren't as common as you might think, and a CPA can help you devise a solid plan to reduce your spending and increase your savings. Estate planning is also crucial for older individuals or those with many dependents. You want to ensure that your assets go where you want, and a CPA can help you plan that out.
To learn more, contact a CPA firm like William M. Kaneski, CPA.