I hear it all the time. “Get an accountant for your home based business.” The problem is, if you have nothing to account for, what do you need an accountant for? I’ve said it many times and in this case, it’s no different. There are no absolutes in anything. So okay, how do you know if and when you need an accountant? This article is going to try to give you some common sense answers.

First of all, let me start off by saying that I am an unusual case. I don’t have an accountant even though I am running a six figure business. Why? Because I took accounting in school and know the subject well enough to be able to handle my own finances. Plus, doing so doesn’t take so much of my time from me that it’s worth it for me to hire somebody to do it for me. Naturally, this is just my opinion and others will probably disagree. Point is, if you can do it yourself competently, do it. If not, then the question is, when do you need an accountant?

There is no hard and fast answer to that. Naturally the answer will depend on how much money you’re earning and how many deductions you have to take into consideration. Now, here is the shocker for you. The deductions are much more important than the income. Why? Because any monkey can add up the money that they make. It doesn’t take a rocket scientist to add up Clickbank or PayPal receipts. At least it shouldn’t. But deductions…they’re a whole different story. Do you even KNOW what things you can deduct? Again, the only reason I knew was because I’ve learned all this nonsense. Most people do not know what they can deduct. And even if you’re not making much money, that can be dangerous.

My first year in business, which wasn’t a great one, saw me earning what would be considered poverty level income. Thank God I didn’t need the money. But with all the deductions that I was entitled to (computer equipment, supplies, advertising expenses, etc.) my final bottom line was actually in the red that first year. Had I not known what I could deduct, I would have ended up paying taxes that I shouldn’t have paid. Today is a different story. I make so much that Uncle Sam is killing me. But oh well, that’s the price of success I guess.

Point is, if you don’t know the laws and what you can deduct, get an accountant…one who is an expert on income tax. It will save you tons of money in the long run. Then, after the first year, if you feel you can handle it on your own (just look to see what he deducted for you) then you can let him go and do your own taxes. If not, he’ll be more than worth the expense.

To YOUR Success,
Steven Wagenheim

Looking for a solid 4 step plan to building your own business…FREE? Pick up my free report at http://www.stevewagenheim.com/4steps.html and get started TODAY!