The Benefits of Hiring a CPA for Personal Tax Preparation

A CPA (Certified Public Accountant) is a title for a qualified public accountant. CPAs are trusted to give financial advice and plan for personal and professional needs. Keep reading to learn more about the benefits of hiring a CPA for your personal tax preparation.

Factors To Consider When Hiring A CPA

First and foremost, each U.S. state has specific requirements for CPAs to meet in order to earn their title, so clients have confidence in knowing that their financial affairs are in expert hands. But what other factors should you consider?

Experience

An accountant with extensive experience in financial planning already possesses the knowledge you may need in your tax preparation. A CPA must hold a bachelor’s degree or higher, 150 semester hours, pass the GMAT (Graduate Management Admission Test) along with the Uniform CPA Examination that comprises four sections, take the CPA Ethics Exam, and then may finally apply for their CPA license. Some states may differ in their CPA requirements, so look into your state’s requirements if you are curious. All in all, each CPA has come a long way to hold that title.

Qualifications

When working with an accountant, ask yourself which qualifications matter the most in your tax preparation journey. Accountants should be savvy in financial literacy, critical thinking, data analysis, analytical thinking, and attention to detail. These qualities are expected standards across all accountants, but clarify that the one you are working with is well-equipped to meet your needs.

Certifications

Some common yet crucial certifications to look out for are the Certified Public Accountant (CPA), Chartered Accountant (CA), Certified Management Accountant (CMA), Certified Internal Auditor (CIA), Certified Fraud Examiner (CFE), Chartered Financial Analyst (CFA), and many more. These are just a few of the skilled certifications an accountant could obtain.

Compatibility

Trusting someone with your tax preparation is a big responsibility. That’s why you and your CPA must be compatible throughout the process. There is enhanced communication, efficiency on both ends, shared understanding, and customized solutions when compatible.

Benefits Of Hiring A CPA

Though there are numerous benefits of hiring a CPA to handle your taxes, here are five of the most significant ways they assist:

Tax Expertise

First and foremost, CPAs are tax experts. Taxes can confuse those who do not regularly study or work with them—and that is okay! CPAs are trained year-round for any tax-handling services.

Maximizing Deductions

CPAs identify deductions that you may not be able to recognize, so you only pay what you owe. Since a CPA knows how to maximize these deductions, you will see more money when all your taxes are finished.

Time-Saving

When you hire a CPA, you save yourself from taking on an enormous, time-consuming task. CPAs know the best ins and outs of handling them in the most efficient, accurate way possible.

Avoiding Errors

Missing an error or making a mistake on your taxes is common for the standard person. However, CPAs are well-versed in strategically spotting errors and quickly correcting them.

Peace of Mind

Hiring a CPA gives you peace of mind throughout your tax preparation process. Knowing you have a CPA you can trust completely allows you to know your finances are in good shape with a highly accredited professional.

Find A CPA Near You

If you’re considering hiring a CPA for your tax preparation or have questions about where to begin, let Royal Oak assist you. Our expert financial team is ready to meet you wherever you are in your financial planning journey. Contact us today to get started!