Real estate is a lucrative industry with a vast array of opportunities for investment. From rental portfolios to flipping properties, there are numerous ways to make money in this industry. However, as with any business, it is essential to consider the benefits of hiring a Certified Public Accountant (CPA). While many people assume that CPAs are only necessary for tax purposes, their expertise goes far beyond this area. A CPA can offer invaluable insights into streamlining your business, reducing tax liabilities, and reducing stress, among other benefits.

Reducing Tax Liability

While it may seem obvious, reducing your tax liability is a key benefit of hiring a CPA. A CPA with a tax specialty can provide you with expert advice on how to take advantage of all the deductions available to you. This is important because the tax code and regulations are complex, and it is easy to miss out on opportunities to reduce your tax bill. For new clients who haven’t previously used a CPA, the benefits can be even more significant. This is because they may not have been operating in a tax-efficient manner, and a CPA can identify areas where they can make significant savings.

For example, a CPA who specializes in real estate can assist flippers, developers, and realtors who haven’t previously hired a CPA or accidentally hired the wrong one. When a CPA calls them up and explains that they have found a way to save them $5,000 to $10,000, they will likely become a loyal client going forward. On the other hand, not hiring a CPA can be costly, and it is easy to overlook deductions or make mistakes that result in penalties.

Growing Your Business

CPAs are often seen as tax experts that you only visit once a year to hand over a bunch of documents. However, this perception is changing, and good CPAs are bringing business and financial knowledge to the table. A great CPA will not only help you with your taxes but will also provide valuable advice on how to streamline your business as it grows.

For instance, a CPA firm that specializes in real estate investing can advise you on tax issues, help you craft tax strategies, and prepare your tax return. However, they can also add value by helping you automate, streamline, and grow your portfolio or businesses month after month. By doing so, you can focus on what you are good at, freeing up time and resources to grow your business.

A great CPA will also be constantly experimenting with their own business, which they can pass on to their clients. This means that you are not only tapping into deep business knowledge and expertise, but you are also benefiting from a professional who is always seeking to improve and grow their business. If you are new to business or real estate investing, hiring a CPA early on can help you grow much faster than you could on your own.

Reducing Stress

Navigating complex business planning and entity structuring laws or handling IRS inquiries can be stressful. However, when you have a professional CPA on your team, the process becomes much easier. A CPA can help you understand the laws and regulations, create a plan of action, and assist you with any issues that arise.

It is important to seek help early to avoid putting yourself in a difficult situation. Clients who wait until the IRS is knocking at their door to seize their assets are putting themselves in a precarious situation. By hiring a CPA early on, you can reduce stress and ensure that you have a professional to assist you with any issues that may arise.

Choosing the Right CPA

When choosing a CPA, it is essential to ask for examples during the initial consultation. This will help you to determine whether they have the expertise you need and whether they are a good fit for your business. Additionally, it is important to consider their experience and qualifications. A CPA who specializes in real estate, for example,

will likely be more knowledgeable about the specific tax and accounting issues that affect your business.

Another factor to consider is their level of engagement with their clients. A good CPA should not only be available to answer questions and provide advice, but also actively seek ways to help you improve your business and financial situation. Look for a CPA who is proactive, communicative, and takes the time to understand your unique needs and goals.

Lastly, don’t forget to consider the fees involved. While it’s important to choose a CPA who can provide the services you need, it’s also essential to find someone who is affordable and transparent about their pricing structure. Make sure to ask about fees upfront and clarify any questions you may have before committing to a CPA.

In summary, hiring a CPA can offer numerous benefits for your real estate business, including reducing your tax liability, helping you grow your business, and reducing stress. Take the time to choose the right CPA for your needs, and you can enjoy the peace of mind that comes with knowing your finances are in good hands.

If you need any help regarding these issues Corridor Consulting would love to help, please schedule a discovery session here, and we’ll be able to address these issues and much more. We’re looking forward to opening many more doors for you!

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This article is not professional tax or legal advice for your specific circumstances. Consult with your professional adviser to better understand