Should I Hire a CPA or Tax Accountant Near Me? (2024)

CPAs are here to help

Taxes can seem overwhelming when you've got a complex financial situation and need to understand the ins and outs of the tax code. Fortunately, you don't need to navigate this problem alone: Qualified tax accountants are available to help when you need it.

A certified public accountant, or CPA for short, is a type of accountant that can prepare your personal and business tax returns. They can also help you make informed financial decisions, handle your business accounting, and much more.

If you're wondering if you should hire a CPA, we'll explain what a CPA does, how they can be useful, and answer a few common questions you might have about these licensed professionals.

What does a CPA do?

CPAs assist with several areas of accounting, including personal and business taxes, financial accounting and reporting, tax and accounting audits, and financial planning. Here are some of the most common ways a CPA can help with your taxes and financial needs.

CPAs prepare and file tax documents

When you have a simple tax situation, you can equip yourself with a tax preparation checklist and likely handle your taxes yourself. But when you face a more complex tax picture or are looking for an added layer of confidence, you may find hiring a professional is worthwhile.

CPAs can help you online or in person to prepare and file your necessary tax documents as well as offer one-on-one advice on how to optimize your tax return.

Hiring a tax professional often works to your advantage when your circ*mstances are complex or involve a significant amount of work, or when you just want the peace of mind of having a professional on your side.

CPAs help with tax planning

CPAs can work with you to develop a personalized tax planning strategy that aligns with your long-term financial goals. For instance, CPAs can help you make smarter investment decisions by explaining the tax implications of different investment options. This can help minimize your tax liability while maximizing your investment returns.

Likewise, if you’re saving for retirement, a CPA can help you understand the tax consequences of different retirement savings accounts. Once you retire, they can also help you manage your retirement income in a tax-efficient manner.

CPAs can assist with the creation of a tax-efficient estate plan, too. Their recommendations can help reduce estate taxes, ensure a smooth transfer of assets to future generations, and minimize taxes for your heirs.

CPAs assist with tax audits

CPAs understand the questions the IRS might ask of you and know how to provide the information requested. In the event of an inquiry or audit, it can be helpful to have a tax professional to handle your correspondence.

If you hire a CPA from the outset of preparing your tax returns, they'll know which red flags might trigger an IRS audit and how best to avoid them.

CPAs support business owners

CPAs can assist you with your sole proprietorship, partnership, LLC, S-corp, C-corp, or other business. They’re not only able to provide advice when you’re forming the business, but CPAs can also help with keeping your personal and business finances separated and understanding your tax liability for each.

When is having a CPA useful?

Sometimes, you may want to hire a CPA or other tax expert for a short period to help you navigate a specific financial situation. Here are a few examples when working with a CPA can be particularly helpful.

Examining your retirement account options

When deciding how to boost your retirement savings in a tax-smart manner, hiring a CPA might be advantageous. This remains especially true when you consider the wide range of investment options available for growing your nest egg.

If you’re self-employed, you likely have even more choices than an employee and will want to make sure you take full advantage of your options. A CPA can help you better understand all your retirement saving options and provide valuable tax tips for retirement.

Navigating your first year as a business owner

In your first year of business, you'll likely be focused on running the company and growing it into a profitable venture. CPAs can help you prioritize your business goals by handling some of the administrative tasks, including budgeting, bookkeeping, financial accounting and reporting, tax planning, and tax preparation and filing. A CPA can also provide sound financial advice for your growing business.

Adjusting to a life event

When you experience a major life event – such as getting married, filing for divorce, or the birth of a child – your tax situation often sees a significant change. You might consider hiring a CPA to adjust your tax planning to account for any life-changing events.

A CPA can also help you navigate a transaction such as selling your home, or advise you on how you should handle a stock option offered by your employer.

How much does it cost to hire a CPA or tax accountant near me?

The cost of having a CPA do your taxes can vary widely. You can pay a couple hundred dollars or thousands – it all depends on a variety of factors, such as:

• The complexity of your return – If your tax return is fairly straightforward, the cost could be relatively low. However, the fee will be higher if you have multiple income sources, investments, rental property, business income, itemized deductions, or other things that make your return more complicated.
• Your geographic location – CPA fees can vary significantly by region. Urban areas with higher living costs tend to have higher fees.
• Experience and reputation of the CPA – More experienced CPAs or those who have a specialized niche may charge higher fees.
• Timing – If you’re seeking tax preparation services during peak tax season or require expedited processing, you might pay a premium.
• Additional services required – If you need additional services – such as tax planning, audit representation, or financial consulting – you will have extra costs.

Different accountants use different pricing models, too. Some CPAs offer a flat fee based on the expected complexity and workload. Others charge by the hour. Some might even use a combination of flat fees for basic services and hourly rates for additional tasks.

Many CPAs offer an initial consultation, either free or at a low cost, to assess your needs and provide an estimate. When discussing costs, provide a detailed and accurate description of your financial situation to get a more accurate quote. It’s also a good idea to request a breakdown of costs to understand what you are being charged for.

TurboTax Tip:

Be sure you know what's included in the total price if you get an estimate from a CPA for tax preparation services. For instance, ask if your state tax return is included, if there’s an extra fee to file electronically, and if you’ll have to pay extra for audit support if there’s a problem with the IRS?

How can I manage the costs of hiring a CPA or tax accountant near me?

There are a few things you can do to help keep the cost of hiring a CPA in check. First, have all your financial documents organized and easily accessible. This can save time and reduce the CPA’s workload.

Be upfront about any concerns, too. Clearly communicating your needs and any constraints on your budget might result in a more reasonable fee.

And don’t hesitate to compare quotes from multiple CPAs or tax preparers.

However, remember that while cost is an important factor, the expertise and quality of service provided by a CPA can also bring long-term financial benefits, especially for complex situations.

How does a CPA help during an audit?

While not every communication from the IRS related to your return instantly means you've been selected for a tax audit, you do want to handle any questions asked appropriately and provide an adequate response.

Because CPAs speak the same language as the IRS, they can properly handle your communication with this federal agency. They can help you supply the relevant information requested and resolve your issues as quickly and painlessly as possible. Even if the request seems minor, hiring a CPA to guide and represent you is often a wise move.

Do I need to see a CPA more than once?

Most people only think of hiring a CPA when they prepare their tax return. While CPAs can provide valuable tax advice on how to prepare your return, they can also provide year-round tax and financial advice. This can save you significant amounts of money come tax time and help you navigate your financial world.

You can meet with a CPA during tax time if you have a complex tax situation, but you can also consult one before starting a business or when you have a complex financial decision to make.

Should I use a CPA or tax accountant near me?

If you’re searching for professional help, you might be asking, “Should I look for a CPA or tax accountant near me?”

Hiring a local accountant can offer several benefits. For instance, hiring a CPA near you allows for easy and convenient communication. You can schedule in-person meetings, phone calls, or video conferences without having to worry about time zone differences or travel time.

A local CPA will also have a better understanding of the state and local laws that impact your taxes and other financial decisions. This can help ensure that your financial practices are in compliance with the rules and regulations from all levels of government.

In addition, a CPA who is near you will have a network of local professionals, such as lawyers and bankers, that they can refer you to if you need additional financial services.

These are just a few examples of the potential benefits of working with a local CPA.

How can I find a reputable CPA or tax accountant near me?

Many people who are looking for a CPA to prepare their taxes search online for “tax accountant near me” or something similar. That’s an OK place to start, but you’ll also want to take some additional steps to find a qualified tax professional in your area.

For instance, try asking friends, family, or colleagues if they can recommend a reliable CPA they've worked with before. If you already have an accountant who handles your bookkeeping or other financial matters, they might be able to refer you to a reputable CPA who can prepare your taxes. This way, you'll get honest reviews and feedback from people you trust.

You’ll also want to make sure any CPA you’re considering is licensed and has the necessary qualifications to handle your taxes. You can verify their credentials with your state's Board of Accountancy. You can also search the online directories hosted by the IRS and American Institute of Certified Public Accountants. Your state’s CPA society also might be able to recommend a qualified tax accountant near you.

It's important to choose a CPA with experience in handling tax matters, especially if you have a complex tax situation. CPAs can also specialize in different types of taxes, such as personal taxes, business taxes, or international taxes. So, make sure you choose a CPA who has experience in handling tax matters similar to yours.

Once you have a list of potential CPAs, schedule consultations to discuss your tax situation and ask them about their experience, fees, and approach to handling taxes.

What is an online CPA, and should I hire one?

Meeting with a CPA doesn’t always require a face-to-face meeting. As working online has become increasingly common, you now have the ability to consult with most CPAs online to provide you with the advice that you need.

If you’re looking for the convenience that online services can provide, TurboTax Live Full Service offers year-round access to local tax experts capable of helping you answer simple and difficult tax questions alike. Being proactive and consulting with a CPA online can provide you with valuable advice — saving you time, stress, and money.