Certified public accountants have reached the highest level of certification in their field. They've gone to school for accounting and passed a licensing exam that allowed them to claim the title of CPA. Hiring a CPA will give you the assurance you need that your finances are being handled right. Here are four times when you should hire a CPA.
1. Your tax situation is complicated.
If you have a straightforward tax situation as an employee, you likely don't need to hire a CPA. Many online programs allow you to easily enter your W-2 information and file your taxes yourself. However, many people have tax situations that are more complicated. Freelancing is becoming very popular, which means more people are working as independent contractors. Filing your taxes as a self-employed person can be complicated, especially if you're new to tax preparation. A CPA can help you make sure all your taxes are in order. Simply bring all your records from the past year and allow an accountant to figure out what your tax liability is.
2. You were recently divorced.
Divorce can complicate your life in many different ways. Among other things, splitting assets with your ex-spouse can make filing your taxes considerably more difficult. You may have a different tax burden than you did as either a single or married person. Tax preparers that aren't familiar with divorce law may not be able to adequately help you. A CPA has the knowledge and expertise to guide you through filing your taxes, even if you have recently divorced your spouse.
3. You have a significant amount of assets.
If you have a significant amount of wealth or assets, you should hire a CPA to help you manage it. Managing your finances on your own can lead to pitfalls that could cost you lots of money in tax penalties or fees. Hiring an accountant will require you to pay a fee, but it's worth it for the peace of mind you will receive knowing your finances are in good hands. If you suddenly come into money through inheritance or other means, it's smart to make an appointment with a CPA immediately.
4. Your run a business.
Unless you have a background in accounting, you should probably leave your business accounting to the professionals. Hiring a CPA to keep the books for your business will allow you to ensure everything is in order. You'd avoid unpleasant surprises when it's time to pay your taxes when you know your books are all accurate.
For more information, contact a company like John M Vlasac & Company today.