When you are just starting out and securing your first job out of college, it can be fairly simple to prepare your taxes and organize your financial documents. However, as you grow older, you can start generating interest income, gaining dividend income, contributing to 401ks or IRAs and your family may grow. Financials become more involved with every new step. The more complex your financial standing is, the more you can benefit from the help of a certified personal accountant (CPA). The following are a few reasons to work with a CPA in Sacramento, CA.
You need guidance from a trusted expert
A CPA must keep up on his or her certification every couple of years. This means that by working with a CPA, you can be sure that your finances are in the hands of a professional who knows the ins and outs of personal finance and intricate tax codes. A CPA will also do an in-depth analysis of your financial situation and will point out errors, inconsistencies or possible methods of improvement.
CPAs can also be helpful for individuals who make more than $200,000 a year and would like to have greater confidence in their tax filings. Studies show that those who make this amount or more per year are most likely to be audited. If you are one of the lucky people who are chosen, it’s always helpful to have a skilled accountant in your corner.
You want to maximize your savings
A CPA will always look for possible ways for you to save your hard earned income. If you own your own business, are self-employed or possess rental properties, you may be entering into a world with unfamiliar rules regarding deductions, credits and planning. A CPA will help you navigate these waters and inform you of actions that can boost your savings and lower your taxes. For example, if you choose to make a large financial gift, a CPA can help you keep a proper record of your donation to reduce your taxable income. Additionally, when tax season approaches, your CPA can fully prepare your forms to ensure accuracy and secure an appropriate refund.
You require counsel for a life change
Life can change quickly. You may start with a single tax question and find that your financial responsibility has doubled or tripled in a year’s time. Changes in income, investments, marital status and parenthood can lead to a series of shifts in your financial plan. Whether you’re looking to minimize taxation on your inheritance, set your new business up for financial success or start saving for your child’s college education, your CPA can guide you to through the appropriate course of action.
Though financial matters can sometimes be complex, they don’t have to be overwhelming. If you think you may need a CPA, take a moment to reach out to a professional and explain your situation. Above all, working with a CPA can lower your stress and leave you with greater peace of mind. If you’d like to learn more about how a CPA in Sacramento, CA can help assist your financial situation, visit Yoder & Co., CPA.