“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” — Ronald Reagan
A CPA can make or break you financially.
I’ve spoken one-on-one with over 1200 high net worth investors.
I’ve been shocked by the number of people who don’t have a CPA or do taxes themselves.
Ideally, you don’t want either of those scenarios.
You want to have a good CPA who can work for you.
They can make or break you for several reasons.
They can help you find money and pay less in taxes.
So if you’re not happy with your CPA, or if you don’t have a CPA, this is the article for you!
I’m going to explain the advantages of having a CPA in three easy steps.
1. Why You Need a Great CPA
Let me share a story from when I was in college and doing my own taxes.
I made around $15,000 waiting tables.
I was working hard but making very minimal money.
I was ready to turn in my taxes when someone told me to show them to a tax person.
A friend of a friend said they would take a look.
She found me $600 more for that year!
Isn’t that incredible?
I also sent them the previous year’s taxes and she found me another $500.
She ended up only charging me $50, which is difficult to find today.
I was shocked that I got $1,100 by only paying $50!
The multiple was absolutely crazy.
Having a good tax person look at my stuff and find extra money in college was amazing.
I could buy a lot of ramen with that money!
This experience changed my view on taxes.
Something that has happened the last few years particularly is the changing laws.
Laws change every single year.
You need somebody to help walk you through that process so you’re not sifting through everything on your own.
You can do TurboTax or other similar programs.
But again, a CPA is well equipped to educate you on many different things.
They can provide a tax strategy and teach you how to save money in taxes.
They can also provide access to deals or other opportunities that come up.
If you have a so-so CPA that isn’t really impressive, shop around.
Find a good CPA.
Get a referral from a friend.
I’ve used a couple CPAs who are great and have reasonable rates.
If you have a good CPN, send their information to me, because I’m always looking for more opinions!
2. If You Don’t Have a CPA…
If you make over $50,000 a year, then you should absolutely have a CPA.
Taxes take too much time.
Your time is valuable.
As you start to earn more, you’re at a larger risk of getting audited.
When a CPA signs your tax return, they’re putting their license and their name and their reputation on the line.
If something goes wrong and you get audited, they’re also on the hook.
They’re there to help you through that sort of situation.
The extra help is totally worth it!
If you’re doing your own taxes: Stop it.
Working with a CPA on your annual taxes will typically cost you between $200 to $2,000.
But the returns will cover those costs and then some.
Some will even do a free second look.
Even if you insist on doing your own taxes, give it to one or two groups and they will look at them for you.
3. Helping Your CPA Help You
The final thing I wanna say is that you can help your CPA help you.
In the past, my CPA didn’t really understand real estate that well.
But I’d been with her so long (over 15 years!) that I really wanted to help her and continue to work with her.
I found her some resources, articles, and another CPA to help her understand that process.
CPAs should appreciate your help because they will ultimately grow from that experience.
I’m not saying you should necessarily leave your CPA…
But if your CPA is not helpful and they’re not willing to learn, it might be time to look for someone new.
Make the move, get a referral, and get a good CPA who will help you.
This will save you money, provide resources, and maybe even find deals to help you strategize for the future.
If you’re paying more than $100,000 a year in taxes, you need to reach out to us here at Bronson Equity.
We help people with tax referrals to good CPAs and consultants and give our own educational thoughts on strategy.
Help us help you or find a CPA who can help you pay less taxes.
I was able to save over $150,000 in taxes over the last few years.
Now I want to hear from you!
How has your CPA saved you money?
What are some ways that you would hope a good CPA would save you money?
Stick your answers in the comments below.
Before you leave, make sure to check out our special report about investing. It compares the stock market to real estate, and it also includes how the pandemic affects your investment future.
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Disclaimer: I am not your investment advisor. This is for educational purposes only. I am not giving specific advice on what you can do. I am simply giving my opinions.