Taxes are a responsibility all adults must deal with. Your situation may become complicated due to business ownership, moving, or divorce. According to the IRS, Americans owed over $120 billion in back taxes, penalties, and interest in 2022, and could use professional help. Regardless of the simplicity or complexity of your situation, a professional tax accountant can help you in the following ways.

1. Prevent Mistakes

A tax accountant has the expertise to understand the ins and outs of changing tax laws and regulations. They understand the differences between state and federal tax to ensure you avoid mistakes with your personal or business financial tracking. By avoiding such mistakes, you're less likely to be audited or pay more than you should.

2. Utilize Deductions

The right deductions can save you significantly. Maybe you own a business or have rental property. Did you recently make eco-friendly property upgrades? Thanks to a recent federal initiative, you can save up to 30% on any solar PV system installation, according to the EPA. Your tax accountant can alert you to such savings throughout the year so you make upgrades promptly.

3. Save Time

Handling your finances and tax obligations involves time and paperwork. There are tons of documents, receipts, and records to keep track of and go through. Let's not forget about the calculations or trying to remember things you may have missed. Avoid such a timely hassle with the ongoing help of a tax accountant. They'll keep track of all these expenses and will automatically file taxes when the time comes.

4. Strategize

A solid financial strategy is good for you, your estate, and any business you own. With a tax pro constantly on deck, you'll remain compliant and one step ahead of the latest laws. Work with one on your financial goals and figure out how to reduce your tax liability. You'll save more money and work out a plan for your heirs to inherit more.

Don't make the mistake of only thinking about your taxes in January or April. Staying on top of your personal and business finances throughout the year is a better strategy and one you can achieve with a local tax accountant. If you have any questions about how such a professional can help you, call Bud Krater Inc for a consultation.