3 Times It's Recommended You Hire an Accountant
Not every individual needs to hire an accountant to do their taxes or give them investment advice, but it can be a costly mistake to assume that only businesses need to hire accountants when it comes to handling their money. There are some times when it's recommended that individuals hire accountants, and not just for taxes alone. Note a few factors to keep in mind when it comes to having such a professional manage, or advise you on, your finances.
1. You want to reduce debt
It may seem like a contradiction, that you should hire a professional accountant and pay their fees when you're trying to get out of debt, but the amount of money an accountant can save you when it comes to personal debt typically far outweighs their fees. An accountant can note the best way to pay down certain debt; this might mean transferring loans onto a low interest credit card, getting a low interest second mortgage to pay off debt, negotiating with creditors to reduce debt in exchange for a payoff and so on. Trying to manage debt yourself can mean continuing to throw money away on interest charges alone, whereas an accountant can help you see an actual resolution to your debt.
2. You're thinking of quitting your job
If you want to quit your job to start your own business, go into business with someone else, or take early retirement, you may be overlooking some of your upcoming financial impact. For example, you may not be thinking of the life insurance policy your employer covers, and if you would lose any of its trade-in value by quitting. Your IRA and investments may also be affected by a change in income. An accountant can advise you on the entire financial impact of such a change in employment so you can make a wise choice.
3. You've received a large inheritance
Do you know the laws about claiming an inheritance on your taxes, including what type of inheritance needs to be claimed and any regulations about who may have left you this inheritance? The laws will vary according to location and according to who left this to you, what type of inheritance you received, and in some cases, its overall worth. An accountant can advise on tax laws and on how to best offset any taxes you may face from such an inheritance, to keep your tax bill to a minimum while still claiming it as legally required.