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Your Accountant Can Do Far More Than Just Prepare Your Taxes

Posted on 31, Mar, 2014

For most people the only time they think about their accountant is when their tax returns are due, and they find themselves in an almost state of panic at the same time every single year. The reality however is that your accountant is far more flexible in the work they can undertake for you, and is also capable of helping you with far more issues then you probably imagined. In fact your accountant can help you grow your business in as much as they can help you maintain and refine your current tax liability.


If you find yourself in a position where you wish to grow or expand your business you may find that you need additional financing to make that happen. Your accountant is perfectly placed to assist you in finding investment capital, brokers and bankers, and making sure that your current financial statements are in order when seeking additional financial input from external sources in the first place.


Having an IRS tax lien on your bank account or property is a very strong indication that your finances are not in good order. In situations like this the IRS can prevent you from selling your home until the tax liens has been paid off in full or levy your bank account as the next step. A fully qualified accountant can help stop any current collection actions taking place against you so that you have the time to address this issue properly. Tax liens are especially important to take care of because neglecting them can destroy your credit rating among other negative impact.

Tax Reduction

As useful as accountants are for preparing your taxes each year they can also offer invaluable advice for creating tax reduction strategies which operate within the limits of the law, but still serve to reduce your tax liability each year. Remember that your accountant is far more familiar with all new tax law opportunities which become available, providing you with potential access to any of a number of more than worthwhile tax loopholes.

Business Planning

If you've been dealing with the same accountant for several years they will most likely know your business as intimately as you do. This puts them in an ideal position to act as a general financial adviser and business adviser to you - after all they know exactly what your cash flow is like, and the amount of cash reserves or external financing you might have access to. Basically if you're looking for financial advice in relation to your business a trusted accountant can be very worthwhile.

The one big disclaimer when discussing all of the other services which your accountant can provide you with is that not all accountants, or accounting firms, are created equal. There is a growing trend in the appearance of dedicated "tax resolution services" which are operated by teams of unscrupulous people who have little interest in helping you other than giving them large cash retainers for a small amount of work they do for you.

A professional accountant on the other hand is fully versed in all applicable tax laws and knows exactly what you are legally entitled to both in literally hundreds of different scenarios.

Just make sure that you're placing your finances, or tax issues, in the hands of a person or company whom you have absolute faith in - remember that your credit rating and overall financial standing will depend entirely on the professionalism of your accountant, be it a sole practitioner CPA or an accounting firm.

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