Do you enjoy perusing the shelves of your local bookstore or library from time to time and checking out the latest advice on money matters? It’s an important part of my job as a financial professional, of course, and I go straight to the index to see what the authors have to say about certified public accountants. I’m confident in my necessity and relevance for just about every person who has an income, but it’s always good to see how it’s expressed in so many words as the economy goes through its many changes.
Here are three main points that five top financial authors agreed upon regarding the need to hire a CPA when building and protecting your wealth and assets, whether you’re just starting out, have a small nest egg, or a fortune. Please let me know what you think of these ideas. I love your feedback!
1.) Separate Your Wealth from Your Personal World – A CPA will help you set up a corporation for business income that is separate from income that you earn as an employee. These are the two main tax structures in our country, and when maintained completely separate from one another, your risks are minimized, your assets are protected, and your wealth remains secure.
It is well known that wealthy people utilize wise tax strategies like this and accelerate their wealth with multiple corporations, real estate investments, trusts, and charities. The average person does not have all of these things in place, but they are subject to tax audits from the IRS many times more often than the wealthy and they overpay in taxes far more often, so it behooves the Average Joe and Jane to work with a CPA and keep more of their money.
“A good CPA will prove to be one of the most important members of your wealth-building, and more important, your wealth-sustaining, team.” – Loral Langemeier, author of the national bestseller, The Millionaire Maker.
2.) Year-Round Availability Trumps Seasonal Tax Preparers – The unconventional but completely logical wisdom of one author built a strong case for the advice that a CPA can offer a business owner or an individual filing a personal tax return throughout the year, when decision are being made that can affect their overall finances and taxes when the time comes.
“No one, repeat, no one, should use anyone other than a certified public accountant (CPA) or enrolled agent as a tax preparer….Of all professionals, the CPA has traditionally ranked at the top of the list for the most trusted adviser.” – Stephen M. Pollan and Mark Levine, authors of the national bestseller, The Die Broke Complete Book of Money.
3.) Perform Your Due Diligence and Research Your CPA – Not that anyone looks forward to being viewed under a microscope, poked, prodded, and questioned intensely under hot overhead 3rd degree lights, but we CPAs understand how important it is that a shrewd and savvy client who is serious about his or her money and wants to know that a CPA can be trusted will want to check out our backgrounds and our reputations. I hope that my networking and satisfied clientele in Gwinnett County speaks for itself. For a complete list of questions to consider when selecting the accounting professional who best suits your needs, consult the book Simple Money Solutions, by NPR commentator Nancy Lloyd.
Here’s to your financial health and a successful tax season for 2014!