The Friendly Accountant is Back
To help our members with their financial questions, Nathan Reagan of Handy & Reagan LLC is here to provide answers. This is week it’s “When Should I Hire a CPA?”
Background Check on Handy & Reagan, LLC.
Handy & Reagan LLC is a 40-year family-owned practice where Your success is our success. You will find a full range of tax, accounting, retirement, and investment advisory services provided for individuals, businesses, executives, investors, and professionals.
You may be a young couple or business seeking a professional practice for the first time (silver clients), an established couple or business needing more sophisticated services (gold clients), or a family operating businesses and investments in multiple entities (platinum clients). We take pride in working with clients who started with us as silver clients and have grown to become platinum clients.
What separates Handy & Reagan LLC from other practices is the considerable number of years we’ve successfully practiced, and the backgrounds of our people before they joined our practice. Our top three CPAs began their careers with many years at national and large regional CPA firms in the tax department. Also separating us is the full range of services we provide, and the experience we have in matters such as IRS and state tax audits, multi-state tax returns, entity selection and structuring, business owner succession, stock options, and tax deferred exchanges (IRC section 1031).
Reasons to Hire a CPA
With tax time only a few short months away; many people are asking “When is it time to hire a CPA?” or “Is a CPA really worth the cost?” The answer to these questions is of course – It Depends. If your tax return involves only a Form W-2 then many times a program like Turbo Tax is more than adequate. However easy situations can become complicated before you even realize it.
Most people can agree on the importance of finding a great doctor. Taking care of your financial health is no different than your physical health. It is important to find a trusted professional with commitment, integrity and intelligence.
Many times the value of a CPA is not in merely filing tax returns, but the real value is in planning ahead. Of course there are countless reasons to hire a tax professional, however, if you answer yes to any of the below situations then you should strongly consider working with a CPA.
- Do you worry about Retirement? – Taxes and planning for retirement go hand-in-hand. Everyone wants to know one thing, “will I outlive my money?” CPAs can help you create a financial plan to maximize retirement capital and minimize taxes.
- Do you own a Small Business? – If the answer is yes, then you probably already know that you need a CPA for a number of reasons. One of which being that if you own your own business, your risk of an audit jumps dramatically.
- Do you have Self-Employment Income? – If you are an independent contractor or self-employed, then you are basically operating a small business. Don’t miss out on deductions that other people are taking. And again your risk of an audit has suddenly shot up.
- Do you own Rental Property? – If you own a rental home then once again you are essentially operating a small business. Don’t miss out on the various deductions afforded to you by the law.
- Do you have Investment Income? – Reporting nominal interest income from a savings account is easy enough. However, if you start earning capital gains, dividends or any meaningful interest things become more complicated and the nuances of the tax code start to kick in.
- Do you receive Stock Compensation? – If you or your spouse works for a large company you have probably heard of stock options, employee stock purchase plans, and stock compensation. If any of these apply then it is probably time to get a CPA.
- Do you have Late Tax Returns to File? – No question, this is certainly the time to contact a professional. Late filing interest & penalties can double your tax bill. However, the IRS and state agencies often have programs available to reduce or waive these penalties.
- Do Taxes Cause you Stress and Anxiety? – It now takes 74,954 regular sheets of paper to explain the US Federal Tax Code… Maybe now is the time to think about professional help! Everyone needs to ask themselves, “What is my time worth?” Do you want to spend time enjoying life or preparing taxes? Turn the job over to a professional who does this for a living.