Keeping track of expenses and income isn’t necessarily impossible for your average person, but it does take time and motivation to do so correctly and becomes exponentially harder the more complex your finances become. This is why many people with diverse revenue streams and expenditures choose to hire personal accountants. When you hire a personal accountant, budgeting and planning are no longer your task to deal with. By taking your financial management tasks to a professional, you’re given more time to actually enjoy the money you’re making and allowing yourself to cast off the worry and uncertainty of keeping track of every financial and legal detail.
Perhaps you’re on the fence about hiring a personal accountant. You’ve been managing things well up until now, why should you hire a professional? While not all clients are the same, they all deal with personal financial complexity. There are many tasks that personal accountants can accomplish for their clients, depending upon their needs. That expertise and flexibility is crucial to their skillset and usefulness. Outlined below are just a few examples of individuals to which accountants are highly useful in managing finances.
Real Estate Investors
Individuals that invest in real estate can benefit greatly from hiring a personal accountant. Without the help of a financial management professional, much, if not all, of the bookkeeping tasks are left to the property owners. This can include estimating quarterly tax payments, maintaining accurate records of income and expenses, and filing taxes every year.
Real estate investors are often preoccupied with other things, such as property repair and upkeep, and often simply don’t have the time or resources to keep up with the financial responsibilities that come with owning property. Whether you own rental or mixed-use properties, a personal accountant can help! An accountant can track each property’s expenses, help you avoid tax penalties, as well as deposit any rent checks received to the respective bank accounts and document everything in between, ensuring that there is accurate record keeping all year long. When tax season rolls around, your financial documentation will all be accounted for. You’ll have peace of mind when you file your taxes, knowing that a seasoned professional has everything under control. Your personal accountant will also be able to provide you with a snapshot of your finances, meaning you’ll be able to make informed decisions when diversifying your property portfolio.
Think of personal accountancy as a one-stop shop for business owners and young entrepreneurs. From the formation stage to the success stage, a personal accountant is there to advise you every step of the way. If you’re in the beginning stages of starting a business, it can be difficult to decide which structure is most suitable for your business. A personal accountant is skilled at evaluating different factors such as mobility, tax advantages, and legal exposure to determine which structure works best for your business.
Careful planning is an essential stage for young entrepreneurs. The risk and potential profitability of a business must be carefully accessed. If your business is hoping to get a loan, banks and financial institutions require detailed financial forecasts before approving a business loan. A CPA can plan and assist you with this information prior to applying for a loan, which drastically improves your chances of getting approved. If loans aren’t for you, your personal accountant can advise you on the different ways available to raise money for your business or foundation as well.
High-net-worth families are another group who can benefit substantially from hiring a personal accountant. The heads of these families often face an excess of bills, mail, and deadlines that take away time that could be better spent with their spouse and children.
With the help of a personal accountant, these families no longer have to worry about bill payments or tracking their cash flows. A financial management team could also assist in setting up automatic bill pay, sorting through mail, and properly tracking income and expenses. The family is granted peace of mind, knowing a trained CPA is ensuring that bills are paid on time, accounts are accurately recorded, and taxes are taken care of. In addition, these families can have a better handle on their long-term planning and budgeting, since their personal accountant provides them with a monthly cash flow report. This allows for the families to make better financial investments for their future and thrive without the burden of financial bookkeeping.
Hiring a Professional
Perhaps you’re still on the fence about hiring a professional. Do you staff employees? Own multiple rental properties? Have a personal foundation? If you answered “yes” to any of these, it may be time to consider hiring an account and tax management professional, like the experts at Lloyd & Hodge. Lloyd & Hodge offer a variety of accounting services, including bookkeeping, payroll, cashflow & budgeting analysis, and personal bill pay. In addition, they can help you with tax management and entity selection and restructuring. If you’re tired of muddling your way through your finances or simply don’t have the time to properly manage them, contact Lloyd & Hodge today. By hiring Lloyd & Hodge to take care of your finances, you can get back to enjoying life and doing everything you do best.