Individuals are not required by law to keep financial records and accounts only companies must, but failing to do so can be a costly mistake from a financial and tax perspective. Your bank and credit card statements may be incorrect and you may not realize it until it is too late to make corrections. You could forget to pay a bill and damage your credit score. You may have no idea how to allocate income to save and invest. Or you can ignore expenses that may offer tax benefits.
Recording income and expenses is not a difficult task (no accounting background or “literacy” required), but it does take time and effort. You can hire an expert to do it all, do it yourself, or a combination of the two with occasional expert help.
Use an expert
If you do nothave time or think your time is more valuable than paying someone else, you can ask for professional help. But who exactly? When people talk about getting a personal accountant, they often use the term loosely to refer to anyone from an accountant to a CA, tax preparer, or even a tax advisor.
Accountants can be experts in money management, making the most of your taxes and helping you navigate difficult financial situations.
In addition, how an accountant can help depends on your personal financial needs. Here are some details on which accountant is best for specific needs.
For independent contractors and sole proprietors
Finances can be complicated for independent contractors and sole proprietors, from managing invoices to tracking inventory and maintaining the image of a large company. In self-employment, an accountant can help with most money-related matters so that a business owner can focus on their business.
Although a CPA cannot file your taxes, they can help you with business activities like tracking deductions, calculating estimated tax payments, and making sure you get the most out of your tax deductions (including rentals). Also, the accountant is more likely to be aware of the latest changes in the tax law.
Another way an accountant can help independent entrepreneurs, especially right-brain creatives, is to handle all organizational aspects of running a business. Tasks that require a lot of left-brain activation, such as invoicing, tracking sales, and tracking receipts, can seem overwhelming to someone who has never taken a business course.
For individuals
For individuals, hiring an accountant can be a tougher sell. But managing your finances can be more difficult than you think, especially with the advent of personal payments and investment programs.
If you have a lot of financial ducks, a personal accountant can help you keep them all in order.
Perhaps the biggest reason someone hires an accountant is to help them with their taxes, especially when they’re facing complex tax situations like receiving a large inheritance, making a large financial gift, properly reporting a rental property, or navigating capital gains taxes.
Conclusion
A personal accountant can help turn your personal financial information into action. It is one thing to realize that you need to cut back on expenses, but it is another thing to implement that lifestyle.So, decide today and approach the best accounting service CA firm in Kolkata.
