An increasing number of US business owners are finding it hard to manage their finances. From obsessing over forgotten bills, credit card debt or tax season confusion, managing money is becoming more stressful for many. You might be wondering: Should I employ an accountant for personal finances? Is it something just the wealthy people do or could it be a sensible step anyone can take?
The short answer? It depends on how you feel. But if you have ever skipped a payment, stumbled over taxes or simply questioned where your hard earned money is going each month, an accountant for personal finance may be the perfect match. This article explains when it makes sense to hire a personal accountant, what they can do for you, how much it costs and also if DIY options are every bit as good.
Why Personal Finance Needs More Attention Than You Think
People assume that personal accounting services is for the rich only. But the fact is that poor money habits do not care about your income level. Even middle class households or individual individuals can find themselves with overdraft charges, missed tax deductions or forgotten costs.
What can go wrong when you don't actively manage your money:
- Bank errors may go unnoticed.
- You could miss payments which harm your credit score.
- You might not know where your hard earned money goes every month.
- You may lose tax savings.
- You may not be ready for emergency situations.
If this seems familiar then you ought to think about getting a personal accountant to give some structure to the chaos.
What Does an Accountant for Personal Finance Do?
What a personal accountant basically does is a little confusing to many. They are more of a multitasking professional. It can refer to:
- Bookkeeper: Tracks your daily spending, pays your bills and also keeps your budget organized. Ideal for people needing assistance managing daily cash flow.
- Accountant: Usually an individual with formal training or a degree in accounting. Can assist in budgeting and tax preparation, financial report and investment tracking.
- Certified Public Accountant (CPA): The top level of professional accounting is the Certified Public Accountant (CPA). Even more complicated economic requirements may be advised by a CPA which includes high-income tax preparation, estate planning, and investment strategies.
The basic thing is that you don't have to be rich to get financial help you simply need the best expert for your requirements.
Signs You Might Need a Personal Accountant
Unsure if you should hire a personal accountant? Here are some signs you may need one:
- You always get overwhelmed with bills or budgeting.
- You never know just how much you spend vs. how much you save every month.
- You missed previous tax deductions or have difficulty filing.
- You have received letters from IRS Audit or been fined.
- You are saving for huge life events (like purchasing a home, having a child or launching a business).
- You invest but are not sure if your strategy is smart.
- You're self-employed or have several income streams.
Even when just 2 or 3 of those apply to you personally, it may be time to get an accountant for personal finance.
Pros and Cons of Hiring a Personal Accountant
Let us now understand the pros and cons of hiring a personal accountant:
Pros
- Saves You Time: You can forget about late nights balancing spreadsheets or even locating receipts.
- Avoids Costly Mistakes: Errors with taxes & payments could cost you more in the long term.
- Gives Financial Clarity: Know precisely how much you spend, save and owe.
- Helps With Goal Setting: You will be ready for retirement, major life events or emergencies.
Cons
- Price: Personal accountants aren't free. Hourly rates begin at USD 30 - USD 125 depending on the expertise.
- Trust: You are giving somebody access to your private financial information, so vet them carefully.
- Not Always Needed: If your finances are simple, free accounting tools may be sufficient.
How Much Does It Really Cost?
Realistically, hiring a personal accountant is costly. But it could be cheaper than you believe - when compared with what you can gain by going without one.
- Bookkeepers: About USD 20-25/hour.
- Accountants: Between USD 35-75/hour.
- CPAs: USD 100 +/hour for complex tasks.
You can also hire somebody part-time or per project. For instance, The Fino Partners has worked with many clients that need only monthly check-ins or assistance with taxes. This flexible approach cuts costs but offers you professional assistance whenever you need it.
What to Look For in a Personal Accountant
Whether you are hiring a personal accountant for the very first time or replacing somebody, here is what you ought to check:
- Experience: Have they worked with somebody like you?
- Certifications: Are they a CPA or bookkeeping licensed?
- References: Always ask for two at the least.
- Software Knowledge: Do they make use of or even support programs such as QuickBooks Accounting, Xero or Excel?
- Security: How will they safeguard your financial data?
Pro Tip from The Fino Partners: Don’t just go with the cheapest. Select the one that clearly understands your goals.
The decision to hire a personal accountant is mostly a matter of how well you handle your finances, not how much you earn. More people are discovering that a little professional help can go quite a distance with increasing financial stress and complex tax laws.
Related Resource
- How Offshore Teams Can Efficiently Work on Your QuickBooks Account
- Top 10 QuickBooks Features Every Small Business Owner Should Know
- Top Tips to Find a Personal Accountant for Your Financial Needs
At The Fino Partners, we have helped hundreds simplify their personal finances without breaking the bank. So, whether you want an accountant for personal finance to manage your debt, save for retirement or simply need peace of mind, a qualified accountant might be the solution.
Do not wait for a financial error to arise. Think of where you are and where you want to be. Then determine if you need some support. And, if you are prepared to make your finances more efficient, start small, ask questions and explore your options for an accountant for personal finance with The Fino Partners.
