how to hire a personal accountant

Tracking the money that flows in and out of your small business is an essential piece to ensuring that you not only stay afloat, but also continue to grow successfully. One who keeps, audits, and inspects individual or business financial records and prepares financial and tax reports. Professional accounting experience is typically obtained by CPA candidates in government accounting departments or businesses. Working in academia, on the other hand, may satisfy some or all of the professional CPA requirements in some areas.

how to hire a personal accountant

Big Spender – This person doesn’t always have the income to support the spending habits, but they like to spend big! They typically live beyond their means, borrowing money and financing options they can’t afford. It is not necessary for your accountant to be local given the ease with which you can send documents via email and Dropbox. It really comes down too whether you need to actually see your accountant to get comfortable with her advice.

Unnecessary Costs Will Be Reduced

But regardless of your spending habits (or indeed your ego!), many people can benefit from the additional support and guidance a professional service can give you. The cost of hiring professional personal accountant services to do your taxes varies depending on your circumstances and the tax forms you must file. If your tax situation is simple, such as working for a company and needing to submit W2s, hiring an accountant may be less expensive. If you recoil at the thought of preparing your own tax return and wonder how you can find a good certified public accountant (CPA) or tax professional, you’re not alone. According to the IRS, about 58% of the more than 138 million tax returns e-filed through November 22, 2019 (for the 2018 tax year), were prepared by a pro. To explain, as with most service-based professions, accountant fees are going to depend on the individual accountant.

There’s also the risk of your highly sensitive financial information being read as you send the data back and forth, because email is about as secure as a postcard. As a small business owner, take advantage of networks of business advisors available to help you make decisions like choosing the right accountant. There are often voluntary organizations and local chambers of commerce willing to advise you too. Make use of these, as they are there to help you and their advice is usually free.

Hire a Personal Accountant Now and Save Money in the Long Run

If you’re looking for the assurance that comes from filing with CPAs and tax accountants—as well as EAs—we are ready to help. It is essential to remember that these are the average fees; the cost will differ if parts of your tax filings are under exceptional cases and take longer for the accountant to complete. In these circumstances, accountants may charge you more consultation fees and overtime work. Unless you were an accountant in a previous life, you likely need a certified public accountant. Either way, your startup should have accounting help, even part-time or ad hoc.

Bureau of Labor Statistics, the average accountant hourly fee is about $40.[1] Keep in mind, however, that this number can be higher or lower depending on location, as well as the accountant’s experience. Many people are hesitant to hire a personal accountant or financial advisor. I understand because most service providers charge so much money that it isn’t even worth it to use their services. Remember, you could use their service for a few months and get educated on how they can help you manage your finances before letting them go; in the end, it’s all up to you. While there is no official title for a Certified Personal Accountant, “CPA” is an abbreviation for “Certified Personal Accountant.” Accountants who have passed the national CPA exam are listed here. This rigorous exam is a four-part comprehensive exam that many accountants do not pass on the first try.

Should You Use an Accountant if You Have Foreign Income?

Read what user ratings and reviews say about the top accounting service providers on Capterra. Also, check out our comprehensive hiring guide for accounting services. Give your accountant all the information they need to help you file your taxes. In summary, accountants can help you manage your cash flow, reduce costs and improve investments, but only if you have the money to hire one. Equally important is knowing how convenient it would be to contact the accountant if you have concerns or need financial advice. It’s best to choose an accountant with a manageable client list so they can devote sufficient time to your accounts and inquiries.

Switching to a software solution can be a smart move if your needs are basic and you have some fundamental accounting skills to get started. I have written professionally since 2010 and have been an investor since 2015. My finance blog,, is one of the most visited blogs in the world, with more than 3 million readers a month.

These free programs are sponsored by the IRS and staffed by volunteers who are trained to provide basic tax-prep services to the public. If you qualify, use the VITA/TCE locator tool to find a provider near you. However, the IRS maintains a directory of PTIN holders—such as CPAs, enrolled agents (EAs), and attorneys—who have current credentials recognized by the IRS. The directory also includes people who have completed the agency’s Annual Filing Season Program, a series of voluntary continuing education classes covering federal tax law and ethics. Search the directory by zip code to find a credentialed tax pro or CPA near you. Hiring a CPA or tax pro can take the time-consuming and often frustrating task of deciphering IRS rules and forms off your shoulders.

Finally, and perhaps most importantly, a personal accountant examines financial records for accuracy and legal compliance. If you fill out a form incorrectly, such as a tax form, the best-case scenario is that you personal accountant file an amended return with the IRS. Receiving an inheritance, especially a large one, can result in exorbitant inheritance taxes. Furthermore, you may face a very high tax rate on your income and property.

How Hiring an Accountant For Personal Finances Can Help You

Here’s how to determine if you need a personal accountant, and if so, how to find the best one for your specific situation. Always bear in mind that in most countries there is a big difference between tax avoidance (usually legal) and tax evasion (usually illegal). You need an accountant who knows the details of tax law so well that they’ll save you money in legal ways, but not one who takes things too far and risks causing your business to operate illegally. It used to be important to have your company’s accountant located nearby. But today, more companies are collaborating online, using cloud-based technology to manage their business. With cloud accounting, you and your accountant can view identical real-time data at the same time – no matter where you are.