{"id":92179,"date":"2019-09-19T09:00:23","date_gmt":"2019-09-19T15:00:23","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=92179"},"modified":"2021-03-16T13:39:59","modified_gmt":"2021-03-16T19:39:59","slug":"save-money-accountant","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/save-money-accountant","title":{"rendered":"How Finding the Right Accountant Can Save You Money"},"content":{"rendered":"

People often call their accountants when it\u2019s time to file their tax returns, but then the phone goes radio silent for the rest of the year. I get it. I used to do the same thing. I’d send my accountant my documents and he would crank out my tax returns for me. Sounds simple enough, right?<\/span><\/p>\n

That was before I realized the power of speaking with my accountant regularly and strategizing together. When I shifted my thinking and started to brainstorm with my accountant about tax-saving opportunities, it made a huge difference. All of a sudden, I began to invest more strategically, considering potential tax implications beforehand.<\/span><\/p>\n

So, when is the best time to hire an accountant? And how do you get the most out of conversations with yours once you hire one?<\/span><\/p>\n

When to Hire an Accountant<\/h2>\n

The best time to hire an accountant will be different for everyone. Personally, I decided to hire one when my life started to get more complicated from a tax perspective. What I mean is that I started to have deductions that were cumulatively higher than the standard deduction. For example, I got married, had children, and bought my first property.<\/span><\/p>\n

Looking back, I should\u2019ve hired one sooner.<\/span><\/p>\n

In fact, just the other day I was running through the numbers with my youngest son. We looked back over my real estate portfolio and found that although I usually had a surplus of cash flow, I’d almost always rolled it right back into my portfolio to sustain a property I owned or to purchase a new one.<\/span><\/p>\n

Related:<\/strong> An Accounting Hack for Landlords So Easy, Even a Non-CPA Can Do It<\/a><\/em><\/p>\n

What really propelled me into wealth were the numerous tax-saving strategies I employed throughout my investing career<\/a>\u2014many of which I realized, or learned about, through conversations with my accountant. So, yes, I suggest hiring an accountant <\/span>before<\/span><\/i> you feel like you need one, if only to gain ideas and strategies to utilize in the future.
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How to Find the Right Accountant<\/h2>\n

Although many investors prefer hiring an accountant who has personally invested in real estate, I think it\u2019s more important that he or she has experience working with real estate investors. If your accountant is learning more from working with you than you are from working with him or her, you have the wrong accountant.<\/span><\/p>\n

This is where referrals come into play. What better way to find an accountant than to ask around at your local REIA meeting<\/a>\u00a0or even here on BiggerPockets<\/a>?<\/span><\/p>\n

My accountant, whom I\u2019ve worked with for 20-some-odd years now, was referred to me by a family member who owned a bunch of real estate properties. <\/span><\/p>\n

Personally, I prefer someone who has years of experience. That said, I would look for someone who is career-focused and energetic enough to stay up-to-date on the tax code. Keep in mind, a new version of the federal tax code is published each year, and it\u2019s not a light read.<\/span><\/p>\n

Talking Strategy with Your Accountant<\/h2>\n

Let\u2019s say you have a great accountant who\u2019s very knowledgeable and has experience working with investors. Are you asking him or her the right questions?<\/span><\/p>\n

Meeting with your accountant can be similar to going in for a doctor’s appointment: You have to ask proactive questions to get the most out of it. Maybe your accountant has great advice, but you\u2019re just not asking for it. <\/span><\/p>\n

Here are a few simple questions to get the conversation flowing:<\/span><\/p>\n