Do I Need a Personal Accountant? A Guide for Small Business Owners

According to Payscale, as of April 2024, noncertified accountants make an average salary of $57,430, while CPAs earn $76,960 annually — nearly $20,000 higher than noncertified accountants. However, prospective CPAs should consider the additional time and cost constraints related to obtaining licensure. Though no state requires graduate-level education for CPA licensure, earning a master’s degree in accounting can help prospective CPAs fulfill the 150-credit education requirement. Holding an advanced degree can help accountants boost their earning potential and qualify them for upper-level roles. Certified public accountants (CPAs) are accounting specialists with demonstrated accounting proficiency and state licensure.

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HomeBank will appeal if you work on multiple platforms, or don’t use Windows by default. Available for Windows, macOS and Linux (there’s also an Android app in development) HomeBank can be installed normally or as a portable app, and it makes the topic of personal finance easily accessible. If you’ve been using another program – such as Quicken or Microsoft Money to manage your finances, you can import data to save having to start from scratch.

• Purchasing tax accounting software can be a less expensive option; it can be free (for simple returns), and for more complex filing options, it will generally cost less than $130.
• With their help, you can make informed financial decisions that promote wealth accumulation.
• International equivalency exams are offered so that CPAs can work in countries other than the one in which they were certified.
• The cost of hiring an accountant varies, depending on your company’s needs and the accountant’s expertise and certification.

Sure, taxes aren’t a piece of cake, but they shouldn’t be the bane of someone’s existence either. If someone needs several long sessions to understand tax in the first place, they might want to leave things in the hands of professionals. We like its budgeting tools best of all and the visual reporting is very strong. Better still is the fact that it doesn’t force you into predefined categories and instead allows you to tag expenditures however you see fit. That means Buxfer should fit nicely into most people’s banking lives. You don’t have to give Buxfer your exact banking details if you’re uncomfortable doing so.

Accountants who are CPAs are licensed by their state’s Board of Accountancy after passing the Uniform CPA Exam. Other countries have equivalent certifications, notably the chartered accountant (CA) designation created in Scotland and now used in many countries. Accountants across the U.S. can find available positions, even filtering for remote accounting opportunities by searching “remote” in the location field. Prospective CPAs who meet this educational requirement and other state prerequisites can start the CPA exam process through the National Association of State Boards of Accountancy (NASBA). Top CPAs are knowledgeable and keep up to date with changes in the field.

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All of our content is based on objective analysis, and the opinions are our own. However, considerations like costs, confidentiality, and dependence on a single individual must also be taken into account. Their expertise not only enhances financial stability but also contributes to long-term financial success. These include performance issues such as slow-to-load web pages or a battery that drains too quickly. You may see unexplained calls, texts or apps appearing, or pop-ups appearing on your screen. There’s probably no reason to involve a CPA or a tax lawyer, as that might be a massive financial burden.

CPAs use their knowledge of accounting and taxation to help businesses maintain their financial records. They can apply their expertise to multiple roles, including budget analyst, tax accountant, and auditor. Accountants who wish to increase their earning potential and strengthen their career prospects may benefit from CPA designation.

The AAA, a community of accountants in academia, offers research and networking opportunities. The association’s website includes personal accountant a job board for accounting professionals. If you fall within a certain income bracket or are a senior citizen, you may qualify for tax filing assistance.

Required Education for a CPA

Hiring a personal accountant might be beneficial for those who need someone to not only handle their books and transactions, but also keep track of bills, checkbook balances, and credit card statements. Of course, if someone doesn’t have a tax issue per se but only needs someone who will handle their personal finances instead of them (be it to save money or time), they don’t need to aim high. Individuals are not required by law to keep financial books and records (businesses are), but not doing this can be a costly mistake from a financial and tax perspective. Your bank account and credit card statements may be wrong and you may not discover this until it’s too late to make corrections.

Questions About the CPA Job Description

I understand that because most of service providers charge much money that it is not even worth it to benefit from their service. If you face a challenge that’s not necessarily within their scope, a personal accountant can look for a qualified professional to help. Most of them have close connections with people in similar industries.

One of the primary responsibilities of a personal accountant is tax management. They guide you through the maze of tax laws, helping you understand your obligations and opportunities. Determining whether to hire a personal accountant is a critical decision for small business owners. By carefully assessing your financial complexity, expertise, and challenges, you can make an informed choice that will help your business thrive.

Bookkeepers and CPAs both provide financial expertise to organizations or individuals. However, bookkeepers focus more on administrative tasks like recording data related to payroll and invoices. CPAs may perform some bookkeeping duties but also focus on bigger issues like tax preparation and financial advice. This depends greatly on the volume of accounting work your business requires. If it’s becoming too much to handle on your own as a business owner, it might be time to invest in a personal accountant for the company, even if it’s just on a weekly or monthly basis. Last but not least is keeping your records organized, accurate, and 100% compliant.

High state income tax, as well as itemized deductions, might make someone subject to AMT. That leaves a lot of room for error, which is why a personal accountant is an excellent solution. After all, as was mentioned at the very beginning, nobody teaches young adults how to handle real-life, grown-up responsibilities, such as taxes. Help and supportAs is the case with any software package, it’s always good to check there will be help at hand should you need it. Some personal finance packages come with free support, while others have it as part of a paid-for plan.