Following up on the previous Tax Season Tip, where we discussed ensuring all of your expenses are accounted for, this time we will be discussing when you should consult with an accountant. The general rule of thumb is that a bookkeeper keeps the financial information organized, and an accountant interprets it and gives you the best recommendations on how to proceed with filing your taxes. But are they really necessary?
To be blunt: Yes.
There are a lot of complexities to business, whether large or small. Tax laws are numerous and can change over the years, so information that was once reliable can become obsolete. Accountants have to keep up with that information, so that makes them the best individuals to help you.
More importantly, having an accountant saves you the most valuable resource in the world—time. It takes a lot of time to make sure you have everything you need, from the planning to the execution. Having someone who already knows what to do and what is needed cuts down on the costliest portions while simplifying the entire process.
To that end, the best time to consult an accountant would be before the start of the Tax Season. Once the season rolls around, you’ll find that not only will the price of their services be higher since their workloads have increased, but they may be under a lot of pressure to accommodate newcomers. You will also have more time to fish around for better deals and choose an accountant based on some important criteria: availability, credibility, and reputation.
The best accountants are those who are CPAs, since they are usually more than qualified for the task. Building a relationship with them before Tax Season will give them time to become accustomed to your needs, whether that leaves them sending you reminders of when specific documents need to be sent in or how to get certain deductions you may not have known existed. Even if you only use their services once a year, it’s worth it.
And that will probably be the last of the Tax Season Tips for this year. We’ll keep updating our blog with other information, so remember to subscribe to it. And if you require a bookkeeper, don’t hesitate to Contact Us. We'll help keep your books in the black.
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