I need an Accountant I hear you say? part 2
In our part 2 guide to using an accountant, we cover how you can save time, why tax advice is important and reasons why sitting down and going through financial history with an Accountant is invaluable.
- Outsource, outsource, outsource. Some people believe (or can prove) their time is far too valuable to waste on meticulous tasks or something they can palm off to someone down the food chain. It may sound very arrogant, but if you can justify outsourcing your work, then it really does make sense, it gives you more time and power to concentrate on what you do best and what’s best for your business.
- Maximize your deductions. A good Accountant will, quite literally, sit down with you (we do at Stonehouse Accountants) and ask you for a brief and truthful financial history. They do this to get enough information on your background history to maximize your tax deductions. Everyone knows that mortgage interest or student loan interest is deductible, but little known items such as moving expenses, expenses for travel or home office deductions aren’t as well known, and can be quite complicated. It’s possible the amount of money the accountant saves you in tax deductions will be less than their fee – this is very common in our case.
- You don’t have time to do it. I know several people who literally have so many things going on in their life (e.g. family,football practice, crochet, evening classes etc) that they really feel they don’t have enough time to do their taxes, much less do them correctly. If you’re constantly on the go and can’t make the time investment, an Accountant is the way to go.
- You need tax advice related to investments. There are a lucky few who have acquired a significant amount of wealth over their lifetime, and need tax advice to minimize their investment losses when adjusting or advice to reduce their annual income taxes.