When you are facing various types of financial difficulties or are in the midst of undergoing a major financial change in your life, consulting with a CPA you know and trust can make any situation easier. Whether you are facing an IRS audit, have questions regarding your business or investments, or are dealing with the death of a loved one, it is vital you get expert financial advice as quickly as possible. To make sure all goes well, here are 10 reasons to contact your CPA immediately.
Tax Law Changes
Whether you're a business owner or an individual who has multiple sources of income, you know all too well just how often the IRS changes its tax laws. Since there is no way you can keep up with what has changed and how you will be impacted, always consult with your CPA once any tax laws change. By doing so, you can make sure you benefit as much as possible from the new laws.
An Upcoming Audit
When the IRS comes calling with an audit, you need to go into that audit as prepared as possible. Remember, being audited does not necessarily mean you are in trouble with the IRS. In many cases, the agency may only need to get something clarified about your tax return, which in some cases may be to your benefit. By contacting your CPA as soon as you are notified of the audit, you can learn what to expect and arrange to have your CPA with you during the audit.
Starting a Business
When starting a new business, making early mistakes can doom you from the start. Along with finding out about taxes and other financial matters, a CPA can also advise you about the details involved with purchasing a location, equipment, payroll for your employees, business licensing, and much more.
Death of a Breadwinner
Should you experience the death of your family's breadwinner, you may be at a loss as to what to do next. If you were named as a beneficiary for life insurance, your CPA can work with you to answer questions about taxes, act as a go-between with you and the insurance company, and help you set up a financial plan for you and your family moving forward.
You've Inherited Cash or Property
When you inherit a large amount of cash or property, life can change in a hurry. If you fail to speak to a CPA about how these changes will impact your financial future, you could be in for some unpleasant surprises, especially in terms of inheritance taxes. Since these can be quite high, it is best to have a CPA work with you to reduce your taxes as much as possible.
Making a Large Financial Gift
When you want to make a large financial gift to a school, organization, or elsewhere, there will be many tax implications. While you will be eager to make your contribution to a school you attended or an organization you care about very deeply, doing so in haste could result in costly mistakes. By talking over your plans with a CPA you know and trust, you can gain great tax benefits while also helping others.
You Own Investment Property
As a real estate investor, you know the many nuances that go along with not only purchasing property, but also in ensuring it is profitable for you in the years ahead. Due to the many different tax situations that can exist within various states across the nation, you need to know how certain tax laws and other regulations will apply to your properties. Once you consult with your CPA, you can learn how tax laws and other rules will keep your investment portfolio profitable.
You Earn in Excess of $200,000 Annually
Should you find yourself now earning in excess of $200,000 per year, it will benefit you to speak to a CPA as soon as possible. Though it may not seem fair, the more money you earn, the greater the chances you will at some point be audited by the IRS. Once you are officially a high earner, talk to a CPA so that you understand the tax implications and how you can avoid a future audit.
You Need to Reduce Debt
Whether you have suffered the death of a spouse, have recently undergone a divorce, or have made poor decisions regarding your business or investments, you may now be staring at far more debt than you ever imagined could happen to you in your lifetime. When you need to reduce debt, a CPA is a financial professional who can help in many ways. For example, if you are being pressured by creditors, your CPA can act on your behalf and negotiate with creditors, helping you reach agreements to settle your debt. By taking your CPA's advice about debt management, your finances may improve much faster than you expected.
Losing a Major Client
If you are a business owner who has lost a major client, the moves you make in the weeks ahead may determine the fate of your business. Since a major client who disappears also takes a great deal of money with them, you may now be struggling to make ends meet. However, since you will still have a cash flow, there are certain financial maneuvers you can make to keep your business afloat. By working closely with your CPA, you can learn how to rebound from this setback, get your business steadied, and move forward as you gain new clients.
Even if you are a person who feels as if you can work your way out of the most difficult of situations, don't take any chances when it comes to your finances. Whether you are worried about your business, facing an IRS audit, or need to learn how to maximize the profitability of your investment properties, consulting with an experienced CPA will be a smart decision. By not procrastinating, you can take charge of your finances and get much-needed expert advice.