Accounting Professional software
According to New Jersey CPA officers at Vernoia, Enterline + Brewer, LLC, accountants pay up to $35,000 for their accounting software, which is far more sophisticated than consumer-based products such as TurboTax. An accountant’s more advanced software has the ability to quickly scan your information and organize line items and forms correctly. While the software automates data entry and organization to minimize the potential for human error on your return, what is most important is the education and experience of your Certified Public Accountants and the tax planning they might offer.
Accounting: A Professional relationship
Your professional relationship with an accountant goes beyond just filing a return to include your family’s financial situation and future goals.
According to Vernoia, Enterline + Brewer CPAs, who have been preparing taxes for several decades, “Changing tax laws, tax planning, and tax timing can add tremendous value to your tax return, often exceeding the cost of professional consultation.”
For example, a tax accountant can provide advice on tax-friendly ways to save for your children’s education, estate planning, or how to reduce taxes on capital gains.
As a trusted professional, an accountant can answer important questions that arise over the course of the year.
CPA saves time
While taxpayers with complicated business and investment matters may have the skills to sort through taxes on their own, they should question if it is worth the time. A professional tax preparer is so familiar with the software and changing IRS requirements (such as the Affordable Care Act), he or she can quickly and easily accomplish tasks. As a business owner, time can generally be better spent earning money than wading through complicated tax forms. Hiring a professional will save time and stress associated with tax preparation.
The Vernoia, Enterline + Brewer team of CPAs stands behind the work done on behalf of our clients. That extends to being completely involved with the IRS representative should an audit occur. In fact, the IRS recently announced that their focus for audits will be on small- to mid-sized companies, particularly LLCs.
Here are just a few scenarios when it might make sense to start looking for professional tax help:
You own a business.
Self-employed individuals often see the greatest return from hiring an accountant. Owning a business presents unique situations that can impact taxes. Being self-employed changes the scope of deductions, credits, and retirement planning. While you can find information online, you’re likely to find conflicting recommendations and having someone who does this for a living can save you time and money. In addition to allocating available deductions (and paying the IRS as little as possible) an accountant can help you structure your business for the future to help maximize tax advantages in the coming year.
Major life change.
When you have a major life-changing event mid-year it may lead to an unpleasant surprise at tax time. Life events include: having a baby, marriage, divorce, changing jobs, receiving inheritance, retiring, disability, etc. These are things that can change your financial and tax situation overnight.
Real estate or taxable investment dealings.
Owning a rental property creates special tax situations to take advantage of… and make sure that you aren’t making any mistakes. The same applies to buying and selling a home or other real estate. With large-dollar transactions you’ll want to make sure you’re doing everything properly.
Likewise, if you buy and sell stocks, bonds, mutual funds, or anything else throughout the year in a taxable account there are tax ramifications. Long- vs. short-term gains and losses, dividends taxed at a different rate, cost basis, and more. This is time-consuming for most people to process and you might want the assurance of a tax professional.