As we head into the new year, many will resolve to get their finances in order. Often, people think that a CPA is something you only need if you have a small business and are completely unaware of what a personal CPA does or why they could benefit from hiring one. Why should you Google “personal CPA near me” and choose Baldwin CPA today? These are just some of the reasons that you need one for the upcoming year and going forward.
What is a Personal CPA?
A personal CPA is one who focuses on working with individuals rather than just businesses. As an individual, you aren’t required to keep a ledger of all the things that go in and what goes out like you are as a business owner, but that doesn’t mean that you wouldn’t be better off financially if you run your personal finances as you would a business, keeping track of everything you are spending on and making. A CPA is an accountant who has met educational and experience requirements and is licensed by the State. This is distinguishable from an accountant or bookkeeper that may not be subject to State regulation. One service that CPA’s can provide is to help you keep track of your spending habits and investments in the same way they would a corporation or business.
Is Hiring a CPA More Expensive Than Doing It Yourself?
Undoubtedly an argument could be made that hiring a personal CPA is more expensive than doing it yourself, but that would depend on how closely you watch your finances, as well as your understanding of tax laws and how well you manage your money. Sometimes doing it yourself means that you may miss opportunities for savings that you may not know exist.
How a Personal CPA Can Help You Save in the Upcoming Year
The reason that we have professional CPAs was originally due to the public needing accounting professionals that demonstrated accounting skills, the ability to review financial statements and to express an opinion thereon. Over time, CPAs became trusted financial advisors, as not all people are good with money – or even want to be. Many of us do little more than balance our checkbooks, which means our spending isn’t always planned or accounted for. If you don’t find ways to put money aside for a rainy day, that rainy day can literally wipe you out. However, if you have someone helping you plan, then you are more likely to get yourself into a comfortable situation for the future so you aren’t living from paycheck to paycheck.
What about Your Personal Income Taxes?
Most people assume that they only have two options: they either earn a paycheck or they are an independent contractor who is responsible for their own tax reconciling and payment. There are other options that can help you take advantage of tax deductions and pre-tax saving options that you don’t have if you are strictly paying your taxes as a freelancer or independent contractor. But if you don’t know what those options are, you may be paying more in taxes to the government than you need to. Doesn’t it sound much better to pay an accountant to keep more than to pay the IRS money that you shouldn’t have to pay?
Other Types of Financial Planning You Might Be Missing
Sure, taxes are a burden that many workers worry about once a year, but there is way more to what personal CPAs do than reconciling your taxes. A personal CPA can help you put money aside, plan for retirement, invest wisely, and even help you evaluate life insurance products and other things that you might not be taking advantage of, but definitely should. A personal CPA is your own financial advisor!
As we head into the back half of 2023, many will resolve to get their finances in order for the rest of the year. If you are committed to making this year the year you get your money situation under wraps and even begin to accumulate wealth for your future, then don’t just Google “personal CPA near me.” Contact Baldwin CPA to get started on financial wealth and freedom in the year ahead!