It's okay to hire some things out and focus on what you do well.
I’m officially hiring an accountant this year. I’ve done my own taxes the last few years. I think of that as being something I’m as competent to do as the next guy. Not because I had Federal Taxation while in law school (though I did!), but simply because most of the self-preparation programs people use are mostly dummy proof. I used the free version of TaxAct for the last two years. It’s a pretty good program. It’s a competitive business, and there are several other good programs out there as well.
Under my value system, however, it’s worth it to me to make sure that my taxes were done right and that I’m not going to mess anything up in the eyes of the IRS. My returns have become more complicated over the past year as well, on several fronts. My wife started making money. We now own two rental units instead of one. I make a small amount of income from the ads on this blog. All of those things add to my taxable income and conversely, to my itemized deductions. I want to make sure I capitalize on the deductions available to me and have a tax efficient plan going forward.
I’m banking on the notion that my accountant, because it’s what he does for a living, will be more efficient (and better) at doing my taxes than I am. This is hard for me in some ways. I have a desire to do things for myself and to live frugally. I have to balance that with Ricardo’s division of labor, which tells us that a society can accomplish more when its people specialize.
Theoretically, at least, this will allow me to focus that extra time toward developing my career (and making money) and doing things I enjoy, like writing and building this blog.
For me, I think it’s the right choice. I think it’s time. Couple that with a diminishing amount of time for me and perhaps even less for my wife – I feel good about handing over the reigns. Maybe an accountant can help me live in the better half of things.
I’m going through the vetting process of hiring a CPA. I am probably going to go with a recommendation I got from my uncle, who gave the fellow his stamp of approval by saying, that he inherited his current CPA through a referral from the firm that did the accounting for several of my families’ businesses over the years, including his dad’s business, my dad’s business, and various individuals in our family. How can I say no to a referral like that?
I’d love to hear thoughts from anyone that’s hired a CPA. How did you choose them? How did you make the choice to hire someone instead of doing it yourself? Have you been happy with your decision? Are there considerations I’m missing? Any cautionary tales from the wise? Good luck and thanks for reading.
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