Around 75% of Americans are personally handling their finances with no help from advisers or accountants, according to a recent CNBC survey. Accountants are generally believed to be only necessary for entrepreneurs and businesses. The reality of the situation is that accountants can be good for your personal finances, too. Not only can they assist with annual responsibilities like filing taxes, but they can provide valuable tips to uncover financial savings and other tips.
A whopping 80% of Americans missed updating their W-4 tax forms, according to data from H&R Block. If you’re among that number, you may end up with a smaller tax refund that you were expecting. Other common filing mistakes are sending the files to the wrong IRS office and failure to list down all dependents. Consulting an accountant or hiring one can help ensure that all your tax forms are current and updated. They can also help familiarize you with the process so once you feel confident enough, you’ll be able to do the filing yourself. This not only saves you time but it saves you from making mistakes that may end up costing you any penalty fees.
Financial Statement Compilation
Americans take out loans for a wide variety of personal reasons. Loan providers will generally ask that you turn over pertinent financial statements which can include your annual income and any expenses. This is helpful if you’re aiming to borrow from an unsecured loan provider than bases their approval on credit history and income. An accountant can help you compile your financial statements. They can also help you compare unsecured loan providers so you can make the best choice. This way, you can have a better understanding of what repayment scheme fits your income.
49% of Americans feel concern over their cash flow management, according to a study conducted by MarketWatch. A common issue with cash flow management is a failure in the proper allocation of funds. This is particularly true for people who have multiple financial responsibilities like loans, mortgages, healthcare payments, and tuition. An accountant can help give you the lay of the land when it comes to your cash flow. They can explain how much comes in and how much should go out. They can also help you determine any adjustments that need to be done to your income or expenses.
An accountant isn’t just someone you should visit when you have financial woes. In fact, regularly consulting with a trusted accountant can help spare you a lot of stress down the road. So when you are able, try and locate a professional that can help you navigate the sphere of your personal finances.