As a real estate investor in New York, you need an accountant doing your taxes. They will be able to help you find every deduction and make sure everything is done properly. Our latest post will offer tips on how to find the right accountant as well as the signs to let you know you need one!
For many people, when they begin their investment journey, they start off doing their books themselves. Things are still pretty simple and straightforward, and they can get by doing things on their own. As time goes by, and more assets are acquired, the finances can become a bit more cloudy. Hiring an accountant becomes necessary and you will want to work with someone you can trust. In fact, realtor.com suggests you should hire an accountant when you have bought or sold even just one property in the past year! Below are three sure-fire signs you need an accountant to do your taxes and some signs you’ve found the right one.
#1 – You Own Multiple Properties
As you start building your portfolio, the more complicated your finances will get. While you may like running your numbers for yourself, hiring an accountant who is familiar with real estate, will save you costly mistakes. When you own multiple properties in the New York area, it is easy for things to get mixed up. By utilizing the experience of a well-versed accountant, you will make sure you are seeing the greatest returns possible from your New York area properties.
#2 – You’re Making A Lot Of Money
More money, more problems, right? Managing your finances once you reach a certain level will require the help of a professional. Keeping up with changing laws, and finding all the possible benefits is important when your income level is so high. According to The Balance, you should definitely hire an accountant when you are making over $200k, own your own business, or own rental properties. Once you enter certain tax brackets, the laws change and you will want to have someone on your side to help you plan accordingly.
#3 – To Be Efficient With Your Taxes
Why pay more money than you need to? A great accountant will leave no stone unturned, making sure you get every deduction you are entitled to. They will make sure you aren’t leaving money on the table or working harder than you have to, trying to get everything done on your own. Owning real estate is like owning a business. It’s important to hire someone who fully understands the laws and who can help guide you through the process so you don’t find yourself buried in receipts and paperwork come tax time.
What Great Real Estate Accountants Have In Common
A great accountant is going to have a grasp on every financial aspect of your business. They will be up to date on the ever-changing tax laws and will be able to utilize these changes to your benefit. They’ll leverage every tax benefit available to you, keeping more cash in your pocket each year. They will act as an advisor and help you when it is time to make big financial decisions. They will be accurate, organized, and focused on the details so you can focus on the deals. They will help you understand your finances, making a sometimes confusing topic, something simple and easy to understand. Hiring an accountant is instrumental in the success of property and business owners. The amount an account will cost is nothing compared to the about of time, money and trouble they will be able to save you.
Finding The Right One
When looking for the right accountant to meet your needs as an investor, it’s important to ask a few questions to ensure they are the right person for the job. Some questions to ask include:
- Do you work with real estate investors on a regular basis?
- As a CPA, do you have any special qualifications or certifications?
- How long have you been in business?
- Do you have partners within your firm?
- Will anyone else be working on my taxes or books?
- What services can you provide other than taxes? (Planning, bookkeeping, etc.)
- What kind of agreement will be in place when we choose to work together?
There are lots of accountants out there, but not all of them are versed in the needs of real estate investors. When looking for the right accountant in the New York area, be sure to ask the right questions, get references, and make sure they are someone you feel like you could have a strong working relationship with. Remember, the person you choose to hire will be instrumental in the financial success of your business or investments. You don’t want to work with just anyone.