5 Benefits of Hiring a Tax Advisor

You can find instructions for how to do just about anything on the interwebs these days.

Still working on that New Year’s resolution to get in shape? Take your pick of at-home workout regimes posted online. Changing a tire for the first time? No problem—hundreds of people on YouTube can walk you through it. Want to crochet a baby Yoda beanie for your bestie’s Star Wars–themed baby shower? Just Google it, and may the force be with you.

Some problems can be solved by simply whipping out your cell and looking them up, but when it comes to the big stuff—like serious car repairs, expensive plumbing issues, or purchasing your first rental property—it’s usually best to hire a professional. Going with a pro in any of those areas can save you a major headache, as well as time and money. And the same can be said for dealing with taxes and the IRS (talk about major headaches!).

If you have a simple tax situation, you might be fine self-filing your return with tax software. But if you have a more complicated tax return or you’ve had some major life changes this tax year, hiring a tax advisor is usually the way to go. They can juggle all your tax forms and take your tax season stress level down a few notches.

Hiring a tax advisor can be one of the best decisions you make on your financial journey. They can help you in a lot of ways, not just by filing your tax return. So, let’s look at five of the best benefits of hiring a tax advisor.

1. They can save you money.

First things first, folks. When it comes to filing your taxes, working with a tax advisor can save you some dough.

Yes, you’ll pay more for a tax pro’s services than for self-filing with tax software. The average cost for a basic tax form preparation is about $220.¹ That may sound like a steep price to pay for tax services, but when you hire experts—like tax pros, doctors, and mechanics—it’s worth it to spend more to get the job done right.

There are a lot of ways a tax advisor can save you money, even after paying their fees. You’re not just paying a tax advisor to deal with all those tax forms and paperwork. You’re also paying for their knowledge and expertise—tax advisors speak IRS. (Have you tried to read tax forms? They’re more confusing than Shakespeare. In French.)

A big part of a tax advisor’s job is to know the tax code—not to mention how to read tax forms—so they can help you save as much money as possible. That means they can look at your situation and know which tax deductions and credits you qualify for. Plus, they can help you plan ahead for any major financial moves you make during the tax year and help you understand how those moves will affect your tax bill.

Chances are, if you have more than just a W-2 and one or two 1099 forms from a small side gig you’re crushing on the weekends, you’ll make back any money you pay for a tax advisor’s services with the money they can help you save on taxes and then some.

And most tax advisors can help you save money year-round, not just during tax season. We’ll talk more about the kind of services they offer after tax season has wrapped up in just a minute.

2. They can save you time.

You know what they say (whoever “they” is): Time is money, and hiring a tax advisor can save you both.

 Don’t let taxes overwhelm you. Connect with a RamseyTrusted tax advisor.

Who knows—maybe you’re one of the rare tax unicorns out there who doesn’t mind spending an entire Saturday sorting through paperwork and figuring out how much money you owe the government. But if you’re like most of us, you’d rather spend that time with family or working on your side hustle.

If organization isn’t exactly your strong suit, a tax pro can give you a list of all the tax forms and paperwork they’ll need to file your taxes and handle all the organizing for you.

Just keep in mind that if you show up with a grocery bag of random receipts and crumpled tax forms with coffee stains all over them, your tax advisor may charge you an extra fee for the hassle. But with the time they can save you, that extra fee might be worth it!

3. They can give you peace of mind.

Some people are completely comfortable self-filing their taxes online. They usually have a simple tax return (we’re talking a few tax forms and sticking with the standard deduction here, folks). Plus, they know their way around tax software and feel confident that their return will be accurate.

But if you’re not familiar or comfortable with online tax software, there’s no shame in skipping it! Tax season is stressful enough, so let a tax pro handle the heavy lifting and give you confidence that your return is being filed correctly. And if you’re worried about getting audited, a tax advisor can help you avoid mistakes at tax time or walk you through an IRS audit.

Any good tax advisor will be happy to answer your questions about how they work and how they can help you so you can decide if hiring a tax advisor is best for you. Here are some questions you can ask:

• What does your tax preparation process look like?
• How can you help me with my tax goals?
• What information will you need from me to file my taxes?
• Can I call you throughout the year for tax advice?
• What other services do you offer?

Getting a better idea of how your tax advisor works and all the ways they can help you will reassure you that a tax pro is the way to go. Let them tackle your return while you drink a mocktail and catch up on the Bachelor in Paradise stress-free. Hey, we don’t judge!

4. They can help with tax planning year-round.

Tax advisors don’t just work during tax season. Sure, it’s a mad rush for tax advisors to help folks meet the Tax Day filing deadline (which is April 15 for 2024). But one of the best benefits of working with a tax pro is the help they can provide any day of the year, especially when it comes to tax planning.

You may see letters or certifications behind the name of a tax advisor (like “CFP” for certified financial planner or “EA” for enrolled agent), so before you hire them, ask about their credentials and what services they can offer you besides just filing your taxes.

A lot of tax advisors (including CFPs and EAs) offer tax planning services throughout the year. They can take a look at your tax situation and any major financial moves you plan on making during the tax year—like moving to a new state, buying a home, doing a Roth conversion, or starting retirement. Then they can advise you on how those moves will affect your taxes and help you form a plan to save as much on taxes as possible.

This is where a tax advisor’s expert knowledge of the tax code (including any tax credits or deductions that could save you money) come into play.

Even if you don’t expect any major financial changes for you or your business this year, it’s always good to have a tax advisor who can provide ongoing support. Part of their job is to keep up with the latest tax news and changes so they can answer any questions you have and offer timely advice when life throws a curveball into your financial situation.

And if you file your taxes this year and get a huge refund or owe the IRS, a tax advisor can show you how to adjust your tax withholdings and get closer to that sweet spot where you’re paying almost exactly what you owe to Uncle Sam throughout the year—no more and no less.

A lot of people think getting a big refund is a good thing, but think about it—that just means you’ve been loaning the government your money all year for free! No thank you. There are better things you could be doing with that extra money each month, like paying off debt or saving for your kids’ college.

5. They can help with your small business.

Ask anyone who’s been hustling and grinding at a small business for a year or two and they’ll tell you—navigating small-business taxes is not easy. You’ve got your tax liabilities, the latest tax code changes, and all those small-business deduction rules to learn. And that’s on top of your payroll and bookkeeping. Talk about stressful!

A lot of tax advisors are certified public accountants (CPAs), and they can provide a range of services to help you better manage your small-business finances. From bookkeepers to payroll administrators, CPAs can wear a bunch of different hats on your behalf. And just imagine how much time you could take back if you let an expert deal with your small-business taxes—you might wonder why you didn’t reach out to a tax pro sooner.

Tax advisors are basically the Swiss Army knives of the tax-planning world! They can take a lot of the hassle out of your small-business finances and help you get organized so you’re not scrambling when it comes time to pay those small-business taxes.

Connect With a Tax Advisor Today!

If you’re ready to let a tax advisor do some detective work and help you find ways to save money on your taxes, our RamseyTrusted tax pros know the tax code inside and out. They can work with you year-round to plan ways to help lower your tax bill and answer any questions you have about major financial moves you make.

RamseyTrusted tax pros have years of experience and can help you file your taxes with confidence. Find a tax advisor today!