What It Takes to Hire a CPA and How to Save Money
A certified public accountant (CPA) is a tax accountant who has passed a rigorous exam and been licensed by the state. CPAs are tax experts and can help you save money on your taxes. They can also help you file your taxes and represent you in tax court.
If you're ever audited by the IRS, you'll want a CPA on your side. So if you're looking for someone to help you with your taxes, make sure to choose a CPA.
But did you know that the average CPA charges around $250 to do business taxes? If you're like most business owners, that's a pretty big chunk of change! But don't worry – there are ways to reduce that cost. In this post, we'll show you how to get the most out of your CPA and save some money in the process. Keep reading to learn more!
Get a tax accountant
This one is pretty obvious, but it's worth mentioning. Searching for and hiring a tax accountant near me can help you save money by ensuring that you claim all of the deductions and tax credits that you're entitled to. They can also help you minimize your tax liability through strategic tax planning.
How much does a CPA charge?
The cost of hiring a Certified Public Accountant (CPA) can vary depending on several factors, including your location, the complexity of your tax situation, and the scope of the services you require. According to a survey by the National Society of Accountants, the average hourly fee charged by a CPA for preparing a tax return was around $273 per hour for individuals and $396 per hour for businesses in 2020.
Keep in mind that this is just an average and the actual costs may vary significantly based on your specific needs. Some CPAs charge a flat fee based on the services provided, while others may charge by the hour. The CPA's level of experience and expertise can also impact their fees. Additionally, some firms may offer package deals for certain services or clients.
It's important to ask about their fee structure upfront and understand what services are included in the price. Ultimately, the cost of hiring a CPA will depend on your individual circumstances and the services you require.
Invest in tax-advantaged accounts
If you have the opportunity to invest in a 401k or IRA, do it! The money you contribute to these accounts is tax-deferred, which means you won't have to pay taxes on it until you withdraw it in retirement. This can result in significant savings over the long term.
Consider a Roth IRA
A Roth IRA is similar to a traditional IRA, but the contributions are made with after-tax dollars. This means that you won't get a tax deduction for your contributions, but the money will grow tax-free, and you won't have to pay taxes on it when you withdraw it in retirement.
Save your receipts
This one may not save you money immediately, but it could save you a lot of money if you are audited by the IRS. Be sure to keep all of your receipts and documentation organized so that you can easily provide evidence of your expenses if necessary.
Know the rules
The tax code is complex, and there are often changes from year to year. It's important to stay up-to-date on the latest tax laws so that you can maximize your deductions and minimize your tax liability. A tax accountant can help you stay informed of the latest changes so that you can save money on your taxes.
Wrap Up!
Knowing where to start when it comes time to hire a CPA can be hard. But don't worry, we're here to help!
Just give us a call at Tottax, and we can guide you through the process of finding the perfect accountant for your business. We have years of experience matching CPAs with businesses in all industries, so you can rest assured that we know what to look for.
Don't wait any longer. Give us a call today!