Is Hiring a CPA Worth It?

As taxes become more complex, oftentimes hiring a CPA can save both money and time. Hiring a CPA is not for everyone, and they are better for more complex tax needs. If you are just someone filing with a W-2, you do not need a CPA. However, for small business and more complex tax filers, CPA firms in Phoenix can help you.

Some Situations That a CPA Can Help With

Small Businesses & Gig Workers

For small business owners, such as dropshipping store owners or contractor lead services, there are too many potential tax write-offs to not look into hiring a CPA. A professional CPA will have the know-how to help you navigate through all of the write-offs available.

If you are someone who works in the gig economy, it may be helpful to contact a CPA. There are often tax write-offs associated with this kind of work. You also need to fill out a form 1099 for this income, and a CPA can help you with that.

If The IRS Contacts You

Even if the IRS contacts you for something that seems simple, having a professional on your side can be very helpful. While the IRS could be contacting you for a simple problem, mishandling it could turn it into something more serious.

If You Are Planning on Your Kids Going to College

If you have a child that will be attending college in the future, hiring a CPA to help fill out a free application for federal student aid can be helpful.

If You Own a Rental Property

Filing a return with a rental property can get complicated. Hiring a CPA to help you figure out all of your deductions can be helpful, especially in the first year of owning your rental property.

If You Are Self-Directing Your Retirement

If you use your retirement account to invest in vehicles like real estate or bitcoin, filing a return can become tricky. This is known as self-directing your retirement.

Some Tips Once You Find a CPA

Once you find a CPA that you want to stick with, it is important that you work on building a relationship with them. Developing a good relationship will be helpful because when you come back to work with them in the following years, they will know your tax situation well.

Being organized is also very important when working with a CPA. Typically, they charge by the hour, so you should make a spreadsheet with all the important information on it beforehand. This will just ensure that you are ready for your CPA and you will be as efficient as possible.

You should consult your CPA before making any decisions based on tax rules. They do this for a living, so you should utilize them whenever you can. Oftentimes the rules change or the numbers associated with them do, so make sure you are ahead of the curve.

Avoid lying to your CPA. In the end, it is only going to hurt you financially. You should not be embarrassed and try to withhold any information related to earnings. After all, the information you share with them is confidential.