The Importance of a Good Accountant

Having a qualified tax advisor saves considerable trouble.

When you are just starting out this is not something to be concerned with.  If all you have is a W2 and a couple of mutual fund 1099′s any number of freely available tax filing software programs will get the job done.

Once you accumulate some assets the picture gets more complicated.  Completing your return goes from being a thirty minute job to one that might take a full day.  It is a big time commitment to make when you have other life responsibilities, not least of which is monitoring your portfolio.  It makes more sense to pay a professional to do the job.  Then you can take a few days to review the return before filing and ask any questions that come up. You can also do this with a fresh mind. Self-preparation means that your mind will be cluttered when it is time for final review.

Tax law also changes.  It does not matter if you are smart or have relevant background.  Keeping current on all pertinent issues is extraordinarily difficult when other life commitments are mixed in.  Whatever qualifications you have are also not going to match the depth of someone who lives in this world every day.  I ran a small tax business for three years.  But that was a long time ago.  So while the experience gives me more background than most it does not mean I am at all qualified in the current world.

Questions come up throughout the year.  I was thinking about buying stock in a South American company at one point, for instance.  It was necessary to know what the tax treatment would be to make a good decision.  A quick email exchange provided the necessary information.  On my own it would have taken significant research and the answers found might not have been correct.

Finding someone who encourages you to be honest is important.  The reasons for this have nothing to do with morality and everything to do with good business.  It is easier to follow the rules than to try and keep track of complicated lies.  If anything ever comes up you are going to have to answer a lot of questions.  Thinking you might be able to get one over on the Internal Revenue Service is fun.  But jail is not fun, and that is where you could end up if you go too far afoul.  Less severe situations involve tax debt, interest and penalties that might take years to pay off.  If someone you work with encourages you to cut corners remove yourself from the situation quickly.

There are a lot of scenarios in life where we like to believe we can do things ourselves. In some cases it may be true. But unless you are a trained accountant taxation is not one of them.

Anyone looking for a referral can contact:

Larry Burger, C.P.A.
101 W. 22nd Street
Suite #105
Lombard, IL 60148
Phone: 630-916-1040
Fax: 630-916-4549
Email: larry@lgburger.com
Website: http://www.lgburger.com/

 

© 2017 invessentials.com – Essentials of Investing

Articles presented here are general opinions for your own consideration. They are not specific advice for any one investor.

IRS Penalties and Interest, Self-Reliance, Tax Advice, Tax Preparation

Tax Matters