Are rising interest rates and inflation making it tough to manage your finances? Or perhaps you have heard the news about tax refunds shrinking or people saving big by being smarter with their cash. If you have ever thought, "Should I be doing more with my finances?", you don’t need to worry because you are not alone.
In fact, more and more Americans are looking to get financial assistance from startup founders to gig workers and even retired people. That is exactly where personal accounting services can be useful. If you have ever thought, "Do I truly need an accountant?," this blog will assist you make the decision.
Let us break it down in straight and simple terms in this blog.
What Does a Personal Accountant Do?
A personal accountant helps you handle your finances better. Think of them as a guide who tracks your expenses and income, describes where your cash is going and also helps you save on taxes. They might also enable you to save for big expenditures like a house, retirement or college.
There are 2 kinds of professionals:
- Bookkeepers: Do the everyday things like pay bills, balance checks, make records.
- Accountants: Usually have formal training and do financial planning and tax preparation.
They are the CPAs who could give you more comprehensive financial advice in case your finances tend to be more advanced.
When Do You Really Need an Accountant?
Not everybody needs a personal accountant on a full-time basis. But there are many situations where hiring one may be the wise move :
- Your taxes Are Getting More Complex: If you have a side business, rental properties or investments, your taxes may get tricky. An accountant makes sure you get deductions and all the documents right.
- You Just Don't Have the Time: Managing money takes time. In case your schedule is jam packed, it may be best to employ an accountant instead of pulling up excel sheets and receipts every weekend.
- You are Starting or Growing a Business: Startups and small businesses frequently save money by not employing an accountant, but that could backfire. An excellent accountant can help set up your business, do bookkeeping and file taxes, helping you avoid costly mistakes.
- You Are Planning Major Life Changes: Are you planning on getting married? Having a child? Purchasing a home? A personal accountant will help you budget for all these big milestones.
- You are Just Not a "Money Person": Numbers aren't everybody's strength. In case you find budgeting and forecasting or understanding tax forms stressful, an accountant can save you time and relieve your stress.
What Are Your Options of Employing an Accountant?
You do not need to employ a full time accountant at every stage of your business. Levels of accounting help can vary according to your budget and needs. Let us now see the options available:
Option 1: Get a Bookkeeper
A bookkeeper can assist with the day to day cash tasks - monitoring costs, reconciling accounts, and paying bills on time. This can be in person or through remote.
Cost: On average USD 20-30 an hour.
Option 2: Get an Accountant
An accountant can perform more complex tasks such as budgeting, financial accounts, and tax preparation - one step up starting from a bookkeeper. This is great for families, self employed people and side-hustlers.
Cost: About USD 35 USD 125 per hour, based on the place you live and your requirements.
Option 3: Get a CPA
In case you have complicated finances - several companies, big investments or need assistance with tax techniques, a CPA may be the higher fee.
Cost: From USD 38 an hour + services and experience surcharge.
Option 4: Do It Yourself (DIY)
In case you are on a tight budget or prefer doing things on your own, you can find some excellent tools :
- Quicken: budget, track spending & even pay bills.
- Credit Karma: Monitor your finances and file taxes for free.
- YNAB (You Need a Budget): Learn budgeting habits and it also connects to your bank accounts.
- Rocket Money and Empower: Provides personal finance tracking & spending notifications.
You can also mix and match, for ex- use software for budgeting on a daily basis and bring an accountant during tax season 2025.
Pros and Cons of Using an Accountant
Employing an accountant costs money but it also saves you more over time. Consider these options for employing a personal accountant:
Pros:
- Saves Time: You do not have to maintain your own personal records or file your own taxes.
- Reduces Mistakes: Tax laws are tricky. A professional accountant helps avoid penalties and missed deductions.
- Better Planning: An accountant can help you invest, save or stretch your paycheck.
- Peace of Mind: You can sleep better knowing your finances are under control.
Cons:
- Cost: Hiring an accountant is costly if you need one frequently.
- Trust & Privacy: You are giving someone access to your financial life - so choose somebody trustworthy.
- Overkill for Simple Finances: If your money situation is super basic, you might not need such professional help.
How to Choose the Right Accountant?
Not all accountants are equally good. This is what you should ask when hiring a accountant :
- Verify Credentials: Checking credentials is important, especially in case you are hiring a CPA.
- Ask About Experience: Have they worked with people/ businesses/ industries like you/yours (small businesses, freelancers, etc.)?
- Get References: Don't skip this step. Ask for reviews or speak to past clients about the professional.
- Compare Costs: Avoid the cheapest and rather focus on obtaining the best value.
- See If You Click: Accounting will involve a lot of personal stuff. It helps if you trust your accountant.
If you feel like you do need an accountant, you can contact The Fino Partners to match you up with the best financial specialist as per your circumstances.
What If You Don’t Employ an Accountant?
You can ignore your finances but that usually doesn't work. This is what you might miss out on if you fail to hire an accountant on time:
- You might miss out on refunds or tax breaks.
- You might overpay or underpay taxes and have to pay fines.
- Forget bills and your credit score may well drop.
- Financial decisions may make you stressed and overwhelmed.
Even when your finances are "okay," you need to be confident that they are actually accurate. Thus, it pays to employ an accountant for your business.
Final Thoughts
If your finances appear challenging, confusing or time-consuming, it might be time to seek help. That does not necessarily mean a full-time CPA; it might even be a part time bookkeeper, a quarterly consultation or just using software smarter.
But in case you need a trusted person to get started, hire an accountant. They can help you with the best financial advice based on your circumstances - whether you are operating a side business, saving for the future or simply wish to be confident knowing your finances are in order.
If you wish to hire an accountant from the most trusted financial consultancy firm in the USA, get in touch with our experts at The Fino Partners today.
