Radnor News / Blog


posted by: Radnor Financial Advisors

10 Reasons to Outsource Your Taxes to a Credentialed Financial Services Professional

April 15th is a date that normally looms large in the minds of every US taxpayer, however this year, thanks to the ongoing COVID-19 pandemic, the IRS has postponed the deadline for filing individual returns until May 17th.  You may have already filed in accordance with traditional deadlines, however if you’re like many people who dread tax season and may delay filing as a result, you still have some time to submit your returns.

There are many reasons why tax filing can be such a painful process, not the least of which is the depth and technicalities of a dynamic tax code.  Few people have the time or expertise to manage the complexities of tax preparation—let alone understand the ripple effects on their broader financial lives.  However, there is a solution to making tax preparation easier.

Fortunately, there is a distinguished group of subject matter experts who thrive on the complex analysis inherent in filing your taxes—Certified Public Accountants.  Here are 10 reasons to hire a professional financial services firm with CPAs on staff to alleviate your tax filing burden:

  1. Credibility and Experience – In order to become a Certified Public Accountant, one must have 4-5 years of college education, pass a rigorous series of exams, and have a year of experience working under a CPA. In addition, CPAs must complete 40 hours of continuing education annually.
  2. Powerful Software – CPAs use software that is constantly updated for the ever-changing tax landscape.
  3. Tax Planning – CPAs will work with you to plan for the future and advise on tax strategies appropriate for you and your financial situation.
  4. Communication with your Financial Advisor – CPAs can partner with your Financial Advisor to ensure that portfolio activity does not cause any unpleasant surprises at tax time, and enact investment-related tax strategies where appropriate.
  5. Estate Planning – CPAs can assist with estate planning and work with your estate attorney to ensure that all of your assets are properly addressed.
  6. State and Local Taxation – CPAs are well-versed in state and local filing compliance requirements that are not covered or addressed by cheaper tax preparers or retail software options.
  7. Avoid the à la carte pricing quagmire – It can be a headache to determine which retail DIY tax software package to buy. Do I need the base package? …or the Deluxe?  the Complete?  What about Audit Insurance?  Quality firms will simply take care of whatever is necessary to prepare your return.  And speaking of audits…
  8. Representation before the IRS – CPAs can work with the IRS and other tax authorities on your behalf for any tax matters that may arise. On the (very) off chance you are audited, a CPA can represent you to minimize your involvement with the process.
  9. Year-to-Year Continuity – A CPA won’t just prepare last year’s return in a vacuum. They will retain your information, compare your return to the prior year, and review for discrepancies. Many tax scenarios have multi-year tax implications and a CPA will ensure that everything is properly recorded and reported.
  10. Beyond the Numbers – CPAs see beyond the software, beyond the inputs, beyond the documents, keeping the big picture in view. They ask the questions needed to avoid oversights and to identify the planning opportunities available.

Bonus: outsourcing to a CPA can mean less procrastination with your tax filing.  Having someone else crunch the numbers on your behalf simplifies your life, gives you peace of mind, and allows you time to enjoy the more pleasant elements of the spring season.


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