Benefits that Accrue From Hiring Personal Accountants
The proper management of personal finances has emerged as an integral contemporary practice prevalent in the 21st century. According to Horner and Mott (2013), the Great Depression (1929-39) is often viewed as the darkest economic period in human history and severely affected individuals who had readily embraced a nascent consumer culture while paying little concern to the management of personal funds (p.56). In modern times, those who picked vital lessons from this incident have taken financial management practices a notch higher with the hiring of personal accountants. One is not legally obligated to keep financial records but avoiding it can be quite detrimental, from a tax and economic point of view. In this essay, I will provide an in-depth discussion on the benefits of hiring personal accountants and why everyone should consider having one.
To begin with, personal accountants keep track of an individual’s earnings. Personal accountants are professionals with exceptional skills in accounting and bookkeeping. Typically, persons with substantial investments, multiple sources of income and high annual turnovers have made a deliberate effort to hire personal accountants, and for obvious reasons. It is always advisable to have an accurate record of your finances to aid in the planning and budgeting process (Graham, 2013, p. 67). A personal accountant, therefore, prepares an accurate report of their client’s earnings, which subsequently aids them in allocating funds for utilities, paying mortgages or planning for holidays. With a private accountant one is always fully aware of their financial status which then guides them in making any pecuniary decision.
Secondly, personal accounts provide invaluable financial advice to guide their clients. Any financial decision made is bound to have a direct impact on a person’s life. For a young professional, misusing money might hurt their credit score, impede their ability to support a family or even retire comfortably. A peer in the same age bracket as the subject above but taking advice from a personal accountant will receive professional counsel on how to spend their money, best saving practices together with obtaining information on any viable investments. Their work is to ensure that they help clients prepare contingency measures by making financial decisions that influence their lives positively. An impulsive person dramatically benefits from a personal accountant who would dissuade them from buying any item not listed on their priority list. After all, what is the point of purchasing the latest Ford Sports Utility Vehicle (SUV) if you’ll fall into debt and even fail to raise money for your rent? Personal accountants help avert such eventualities.
Personal accountants also enable their clients to save on valuable time often spent on bookkeeping. High earners, in particular, often struggle with keeping stock of their income due to a tight working schedule. Their regimen might include numerous board meetings, business trips, and some mentoring programs, consuming a considerable chunk time. Hiring a personal accountant becomes the only practical option that would see them cede authority to another entity while dealing with other pressing matters. Complex financial transactions can only be completed in time by an expert good with numbers (Personal Financial Statements Guide: With Conforming Changes As of May 1, 2007, 2005, p. 78). The time saved can be spent constructively on new innovative ideas or in spending quality time with family and friends.
In conclusion, historical patterns of economic recession and super-inflation are some of the leading factors that have pushed many to embrace a paradigm shift that now involves the hiring personal accountants. Individuals benefit from hiring personal accountants as they can easily account for their earnings, receive sound financial advice while saving a considerable amount of time. Hence, the hiring of personal accountants is now a standard phenomenon and in vogue among persons seeking a serene state of financial security.
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