“5 Ways to Save by Hiring an Accountant” plus 1 more

Posted: 10 Nov 2011 04:00 AM PST

It may seem counterproductive to spend beaucoup bucks on an accountant when you're trying to save money. But the truth of the matter is that a professional accountant can help you to save more money than you could manage on your own, virtually paying their own salary and then some. In other words, you may have to spend money to make money. And here are just a few ways that it pays to hire an accountant.

Form a Budget

You may have a hard time looking at your finances objectively, but a seasoned professional can evaluate your earning and spending habits and help you to formulate a budget that is going to help you save money. If he's good at what he does, he'll try to make a plan that works for you so that you don't feel deprived from too many cuts. But ultimately, his goal is to ensure that you're not spending more than you make, so although he might offer you a couple of different plans, don't expect much sympathy when your shopaholic ways end up on the chopping block. [Also See: Managing your Finances through a Budget]

Find a Software

If you're filing system for finances is straight up old-school (a filing cabinet and a ledger) perhaps it's time to make the move into the world of digitized finances. Your accountant can help you here by recommending software that will work for you (i.e. user friendly). He will likely offer suggestions that are compatible with the software he uses so that all you have to do is send over your files.

Learn about Deductions

Throughout the year you will have expenses that fall under the category of deductions or write-offs (especially if you own your own business or you work on a freelance/contract basis). Your accountant can make you aware of what items go on this list to ensure that you're saving that you're claiming the right deductions and not wasting time tracking the costs you can't write off. [Also See: Tax Tips: How to Maximize Your Tax Deductions?]

Tax Prep

Despite the many financial services accountants can offer, the main reason most people hire an accountant is to help them prepare their taxes. The benefits of this move are obvious. An accountant knows a lot more than you about the ins and outs of tax law, so he can help you work out deduction that aren't going to get you flagged for an audit. And every accountant, from those with a bachelors of accounting to those with a masters from the most prestigious programs, should be able to find ways to lower the amount you owe the government or help you form strategies to get money back.

Save Time

Not all savings come down to dollars and cents. Or rather, time is money for many people (especially those managing a small business). So considering the amount of time that you will save on data entry and sifting through information on the IRS website (not to mention filing taxes), you stand to save a lot by hiring an accountant.

Dollar Matters: Taxes!

Posted: 09 Nov 2011 08:56 AM PST

Are you ready for tax season? As the end of the year draws nearer, many of us are double checking tax liability, gathering documents, and trying to get ready. At least, I hope you are. It makes things so much easier if you prepare ahead of time. As you consider what you might need to do going forward, here is some reading on the subject of taxes:

11 Steps To Financial Freedom — Step 8: Slash Your Taxes

Over at Boomer & Echo, you can ready about some great ways to reduce your tax liability. As always, of course, you need to make sure everything you do is legal. But it’s a great post on your options when it comes to paying less.

Today’s ‘Duh!’ moment: Tax increases, spending cuts will hurt

Don’t Mess With Taxes takes a look at the reality of the deficit reduction panel that is trying to figure out how to get U.S. spending under control.

Do Businesses Dislike Credit Card Fees… or Paying Taxes?

Joe Taxpayer takes a look at the business side of taxes, and the obstacles that many small businesses face. What’s worse: Credit card fees, or paying taxes? An interesting look at the realities of both.

Don’t Fall Afoul of the IRS Wash Sale Rule

Tax Debt Help goes over the IRS wash sale rule. If you want to sell an investment at a loss, you need to understand this rule, or you won’t get to offset your capital gains or income.

Keeping Up With the Kardashians: Marriage, Divorce and Taxes

Over at Taxgirl’s blog on Forbes, you can read a little bit about the tax implications of Kim Kardashian’s recent marriage and divorce. Learn a little bit that might help you in your marital situation.

An Explanation of the Flat Tax Proposals

A flat tax is getting all the attention in the U.S. Cash Money Life provides a helpful look at different proposals, and looks at what all the hoopla is about.

Battle of the Flat Tax: Cain’s 9-9-9 vs. Perry’s Optional 20%

Speaking of flat tax, there are a couple of more specific proposals on the table right now. (Well, Cain’s might be dead in the water by now, and Perry is fading fast.) At any rate, these proposals offer a basic look at some of the different ways a flat tax can be structured.

Obesity Taxes Won’t Work

Will higher taxes on junk food solve the U.S. obesity problem? Investor Place looks at the idea of obesity taxes, and the possible outcomes.

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