If all you have is traditional employment income, tax time is probably easy for you. However, if you have investment income, are self-employed or have any other sort of special tax situation, you’ll want to hire someone to help you prepare your return. Let’s take a closer look at some of the ways an accountant can assist you this tax season.
Get Your Paperwork Organized
One of the best reasons to hire an accountant is that you’ll be forced to take time to get organized before you file. A professional is going to request copies of any statements you received from your broker or documents generated by your business. These might include 1099s, W-2s and other forms sent to contractors, employees or shareholders.
Make Sure Your Records Are Accurate
An accountant can review any records that you submit to ensure that you don’t make any glaring errors. For instance, a professional might alert you to the fact that you make too much to claim a certain credit or don’t make the right type of income to qualify for one.
Your accountant can also go through charitable contributions and other items on your return to determine if they seem reasonable. If not, you’ll be asked for more information to establish whether they are legitimate. If you don’t have such proof, you may be advised to not take a credit or to otherwise amend your return to reduce your audit risk.
Your Accountant Can File Personal and Business Returns
Perhaps the best reason to hire an accountant is that a professional can submit tax returns for you without the need for any input from you. In many cases, you simply send your books to whoever does your taxes and they’ll be filled in using the information you submit. An accountant may also file quarterly forms if needed, which can save time while cutting down on mistakes.
In addition, your accountant will make sure that your returns are filed on time. In the eyes of the IRS, this is almost as important as paying what you owe as the penalties for failing to file are often larger than the penalties for failing to pay. If you wait too long, the IRS can actually submit a return on your behalf.
Be Proactive When Hiring an Accountant
An accountant can be quite helpful when it comes to ensuring that you don’t pay more than you owe. However, this person is not a magician who can make your problems disappear. The easiest way to avoid problems is to talk to a professional at the beginning of the year if you have any questions or think that any special situations might arise.
If you are looking for an easy way to keep yourself organized this tax season, hiring an accountant may be the way to go. Whether you keep records by hand or use a digital system, a professional can walk you through your obligations at tax time, submit your returns and take other steps to save you or your business money.
