People often get confused when it comes to money, not only by the ins and outs of the stock market, for example, but also by who plays what role when it comes down to fiscal responsibility. There are plenty of questions when figuring out if you need help managing, organizing, or consulting when money is the issue.
It is perfectly natural to ask yourself if you need an accountant or a financial advisor for your personal finances, including your investments all the way down to help with completing your taxes. Accountants are typically only necessary if you are in a very high tax bracket or run a business that requires constant monitoring in order to comply with and understand the state and federal laws regarding taxes and keeping your books in order. Another group of people known for using accountants are property owners who deal in commercial or private rentals on a large scale. Finding a good accountant depends on asking people you know who run good businesses, as well as through asking your attorney or the bank you give business to.
Financial planners are best for putting together a tight budget or putting your financial life back together after a nasty audit, divorce, or a business venture that went sour. They can also help you adhere to your budget so that investing in stocks and other funds is once again possible after you weather the storm of a period of personal financial austerity. If you are interested in a financial planner, word of mouth is usually an effective way of finding one, however, if you are on good terms with your bank, they may also offer a service for financial planning.
Small business owners can often find themselves stuck between a rock and a hard place when deciding if they need help with finances, and then find themselves asking which route they should go for financial consultation; an accountant or a financial planner. By and large, these decisions are made on a case-by-case basis, with any number of factors and variables involved. For a small business owner with a background in accounting or familiarity with tax compliance laws, the money is probably better spent on finding a financial advisor who can help build your wealth through investments. For an owner with great business acumen but not the tax knowledge needed to take advantage of tax loopholes and credits, having a good accountant will be money well spent. Whether you choose one or the other, coming across a situation where a business uses both is either a sign of a very successful and prosperous business, or a business that is very confused and headed completely in the other direction.
Accountants/Financial Planners: Knowing The Difference Credit Picture License: yooperann via photopin cc
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