One of the misconceptions about CPAs is that they’re only for the wealthy. While it’s true that CPAs are often associated with high-net-worth individuals, it’s also true that anyone can use the services of a CPA. It’s not just the wealthy who need help with financial planning and tax strategies. In fact, CPAs can play a vital role in helping people from all walks of life to improve their financial situations. And, in the case of ordinary people in modest financial conditions, a good CPA can actually help those persons to gain a better understanding of their finances, and possibly improve their overall financial situation.
What do CPAs Do?
If you’ve never used a CPA, you may wonder what it is they actually do. CPAs, or Certified Public Accountants, spend their days poring over numbers. They analyze financial records, stay up to date on the tax code, create budget reports, oversee the preparation of tax filings, conduct financial audits, help to ensure that their clients remain compliant with government regulations and much more. A CPA carries a tremendous amount of responsibility, earning their clients’ trust with their diligence and close attention to documents.
What’s the Purpose of a CPA?
CPAs help with forensic accounting, tax preparation, financial statements, internal auditing, and much more. Their main purpose is to help individuals and businesses to thrive financially, and to ensure that all financial records are accurate, that a person or individual is not overpaying in taxes and more. With the help of a qualified CPA, you and/or your business have the potential to live your best financial life. It would be a shame to pass up this valuable service just because you think that only wealthy people can use—or should use—a CPA.
Why the Misconception?
It’s possible that there’s a misconception about CPAs being only for the wealthy because the wealthy may be more vocal about using a CPA. It’s certainly true that the higher the income, the more taxes a person may be asked to pay. So a wealthy person would be quicker to hire a CPA in order to avoid paying a lot in taxes. They may then be so happy about the results that they praise their CPA in public. However, “ordinary” people with “ordinary” wealth also use CPAs, and it’s only right that they should do so.
Why Use a CPA?
The question should be, why not use a CPA? Anyone who has finances to manage and who makes enough money to file a tax return should use a CPA. They are affordable, easy to work with, friendly and extremely helpful. If for no other reason than to be sure your tax return is correctly filed, CPAs earn their keep tenfold.
Use a CPA For Business Financials
CPAs aren’t just for individuals, either. They are trained and licensed to help business owners of all sizes to plan, strategize and meet business goals. Are you wondering if you’re big enough to hire extra help? A CPA can help assess that situation. Are you wondering how you can improve your business cash flow? CPAs know all about managing cash flow. Would you like to give employee bonuses but don’t know how that will impact taxes? Ask a CPA! No matter if you’re just starting out in business or you’re contemplating your first merger, your CPA has the answers you need.
Use a CPA For Financial Goals
It can be hard to successfully reach your financial goals. CPAs know all about this, and are ready with practical guidance and steps you can follow to get you on your way. No matter where you are in the journey, they can help guide you and help you to avoid missteps.
Use a CPA For Debt Management and Credit Counseling
Many, if not most, households in the U.S. are in debt at some level. Regardless of income, many individuals find themselves burdened by this debt, feeling unable to get out from under it. CPAs can provide valuable insights into effective debt management strategies, helping individuals develop actionable plans to reduce and eliminate debt. CPAs can offer insights into how to improve credit going forward, guiding individuals on how to improve their credit scores and access better financial opportunities. Wealthy, middle and lower income people can all use insight into debt management, so this is another reason why CPAs are for everyone.
Use a CPA For Investment Advice
Are you wondering how to handle a second home that you want to use for rental income? Or are you looking to make suitable investment choices that align with your level of risk tolerance? CPAs can empower all your investment decisions by educating you about all the tax advantages of various strategies, setting a clear plan in place that you can feel good about.
Use a CPA For Retirement Planning
Planning for retirement is a crucial aspect of financial well-being, and CPAs can play a pivotal role in ensuring individuals are adequately prepared for their golden years. CPAs can help individuals understand different retirement savings options, assess their retirement needs and develop a comprehensive retirement plan that aligns with their financial goals. Since everyone will retire if they live long enough, you can easily see why the services of a CPA are for everyone, not just a select portion of the population who is wealthy.
If you’ve been hesitant about booking an appointment with a CPA because you thought they were only for the wealthy, it’s time to let go of that false belief. Don’t be embarrassed that you don’t have hundreds of thousands of dollars in the bank. Everyone has to start somewhere. A CPA may just be able to help you achieve your short and long-term goals, no matter how modest they might be.
by Kate Supino