Lots of people assume that CPAs are only helpful for corporations and the ultra-wealthy, but this simply isn’t true. In fact, you may be surprised to learn that CPAs can provide a lot of assistance to individuals and small business owners in various areas, such as tax planning, retirement planning and estate planning.
Below are just a few of the benefits of hiring a CPA.
They can help with estate planning
You’ve worked hard to provide for your family—and you likely want to have the peace-of-mind that comes with knowing your assets and wealth will be transferred to your heirs after you pass away. This is where estate planning comes in. When you work with a CPA, they’ll use their knowledge of taxes to help you minimize your estate taxes, which in turn, will maximize the portion of your estate that will pass onto your heirs.
They can help with retirement planning
An experienced CPA can help you develop a retirement plan, improve your savings, and establish a budget. They can also help you define (and adjust) your retirement goals and help you understand the steps you’ll need to take to reach them.
A CPA can help you develop a tax plan
Your federal tax liability is determined by your adjusted gross income (AGI). Your AGI is determined as your gross income (i.e., your total income including your wages, business income, capital gains, dividends, and other sources of income) minus income adjustments, which include things such as student loan interest, educator expenses, retirement account contributions and alimony payments. A CPA can help you understand what, if any, steps you can take to reduce your AGI. Again, the lower your AGI, the less money you’ll owe to Uncle Sam.
How to choose a CPA
If you’ve decided you’d like to hire a CPA, you likely have questions about how to choose the best one. Below several things you’ll want to ask them before you decide which firm to go with.
- What degrees and certifications do you have?
- If I need to contact your firm, who will be my main point of contact? How quickly do you respond to messages?
- Will I be working with a partner or a junior staffer?
- Do you charge by the hour or by project?
- How much experience do you have in working with clients who have similar needs to mine?
Are you thinking about hiring a CPA? We can help. Call Hughes, Snell & Co. P.A. today to schedule a free consultation.