When Should a Private Individual Hire an Accountant?

Finance & Money Blog

As an individual, you may not ever think about hiring an accountant, assuming this type of professional only works for businesses and perhaps even the very rich. You may assume their services are also not necessary, as you may be able to file your own taxes and handle your own banking and investments yourself. However, note when it's good to hire an accountant even as a private individual and even if you don't consider yourself very wealthy. This can ensure that you protect your monies and your estate and also have the smallest tax bill possible at the end of the year.

1. If you get a substantial raise

Earning substantially more money than you did last year should mean a call to an accountant. You may be liable for more taxes at the end of the year because of your increased income and should therefore do what you can to reduce that tax bill now, before tax time. You may also want to protect your earnings through investments, trust funds for your heirs, and the like, and an accountant is the best professional to advise you on these matters.

2. If you're ready to plan for your heirs

Writing a will usually means the services and advice of an attorney, but planning for your heirs should be done with an accountant. He or she can note if a trust fund is the best way to protect your assets from being taxed or if you need to spend down your assets and estate in order for your heirs to face a smaller tax bill after your passing. Estate planning should always be done carefully and with the advice of someone who knows not just probate and other such applicable concerns, but how to protect your monies overall.

3. If your tax bill suddenly changes

If you realize that your tax bill suddenly changes from one year to another, you may want to hire an accountant to find out why. You may not have included certain deductions as you should have or certain changes in your life may have resulted in a higher tax bill. In turn, you may want to do what you can to offset this bill for next year. This can mean contributing to charity, deducting certain expenses for business and work, and so on. Rather than simply accepting your higher bill, talk to an accountant to find out the best way to protect yourself each year, moving forward.


25 November 2015

Cash Advance Questions and Concerns: Learning about Finances

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