Why Do Younger Generations Need an Accountant?
Many young people automatically defer the idea of needing a personal accountant because they assume that all they do is give a tax return. Accounting is about much more than taxes… it’s about planning for your future alongside someone who cares about your financials. Buying a house, budgeting, debt risk, and even paying off loans are just some of the things your accountant can advise you on in addition to maximizing your tax deductions. These topics are not only relevant to the baby boomer generation.
A common pattern in CPA firms is a clientele base that is mostly comprised of people over the age of sixty. Their kids and grandchildren often get their taxes done through the same firm, but the dangerous part is the younger generations never know their accountant! When the older client passes away, the children and grandchildren are left confused on what to do financially. If only they had built their own relationship with their CPA and known the importance of having their own accountant, a lot of confusion and hardship could be avoided.
It is time for the age of younger people avoiding a personal accountant to come to an end. It is essential to inform yourself and your younger family members on the risk they are taking with DIY bookkeeping and avoiding a CPA. Here are 5 reasons why younger people need to take interest in hiring an accountant for themselves:
- Preparation for financial turmoil. Illnesses, disasters, and divorce are just some of the instances that can wreak havoc on your bank account. Don’t believe the lie that younger people are less likely to be put in a dire situation. Your accountant can guide you to a plan that you can afford such as life and income insurance which will make you prepared for the worst-case scenario.
- Decisions are backed up with an expert. Whether you are purchasing a house, starting a business, or going back to school, your accountant is there along the way. You won’t have to worry about digging yourself into a hole of bad decisions that can lead to debt when you know you have a CPA on your team. Your accountant will know your financial data to help guide you to what choice is best for you.
- Increased financial security. While going over your data points, your accountant is trained to identify potential debt risk and losses. Not only can your CPA increase awareness of future problems, but they also can increase your financial cushion by potentially increasing your yearly tax refund. Your CPA’s job is to find the most tax deductions and credits that are applicable to you so that you can get the return you need.
- Less headache throughout the year. DIY bookkeeping sounds good until you are left drowning in deadlines and forms to fill out. Allow your CPA to handle this for you so you can rest better at night. A CPA can guarantee that you will never be fined for late deadlines.
- Gaining a personal advisor. As the years go by with your CPA, they will truly become apart of your team. Knowing your financials inside and out along with your personal and business needs will lead them to helping you in far more ways than a number could measure. The purpose of your CPA is not only to save you money and think best for you,but to achieve your goals alongside you.
Next time you hear someone say that accountants are for the older generations,show them these reasons why that’s just not true. Don’t let your grandparents be the only ones that benefit from a certified public accountant. Add SME CPAs to your team and you are guaranteed to never be left confused when it comes to your financials.