Americans are facing the threat of rising prices and high inflation. This puts many families, individuals, and businesses alike at risk of financial instability. Whether you're in this position or just want to solidify your finances proactively, an accountant can help. Read on to learn about a few areas in which a trained financial professional can assist you.



1. Minimizing Taxes

Are you overpaying in any areas of your tax obligation? Could you do more to minimize taxes legally? If you're not sure, it's time for a checkup from an accountant versed in tax planning.

Both high earners and average income households have opportunities to reduce taxes through things like harvesting investment losses, maximizing credits and deductions, and taking advantage of nontaxable income or contributions.

Unfortunately, some of these tools are hard to understand and apply, so professional help can be a good idea. Accountants can even go over prior tax returns to ensure you haven't overpaid in the past. 

2. Improving Your Budget

Few people enjoy budgeting in their personal or household finances. But taking control over your spending and saving is one of the best ways to not only reduce expenses now, but also to prepare for future uncertainties. Just as they would with a business, an accountant can look over personal finances and help you make better choices. 

Developing a good household budget can take a little time. Your accountant may analyze spending patterns and saving history. You may need to tweak your budget multiple times as you put it to use. And an impartial professional may help you stay on track when you encounter challenges. 

3. Building a Passive Income

While you can't do anything to slow down inflation, you can combat it by developing more streams of income. Many Americans are pursuing other forms of income, ranging from selling crafts online to investing in rental properties. A passive income can be very valuable to you. They often don't require you to actively participate in order to continue to generate income.

How can an accountant help? They can advise you on the best business entities to choose, how to set up useful bookkeeping, how to meet and minimize tax obligations, and improving your profit margin. Even the most modest side income enterprise should be treated like a real business. 

4. Boosting a Safety Net

Your financial safety net is composed of many things that can help you in times of emergency. It often includes liquid savings accounts, taxable investments, proper insurance coverage, targeted savings goals, and sinking funds.

How strong is your combined safety net? Businesses conduct stress tests, which use scenarios and projections to test how well their safety nets can fill in gaps. You may use similar tools to analyze your home finances and make them stronger. 

5. Avoiding Family Conflict

Finally, the more financial trouble you face, the more likely it is to create conflict and arguments within the family. This can be an even bigger strain than the money troubles themselves.

Could an outside, impartial third party help reduce this risk? Rather than sitting down with your spouse or going over your finances when you're emotional, you do so in a professional environment. An accountant can help you both find and implement solutions that everyone can work with. 

Where to Start

Which areas might an accountant help you get more prepared and build confidence even as prices rise? No matter where you can use help — whether in big changes or small ones — the financial professionals at Bliss & Skeen CPAs can help. We work with a wide array of clients, all with unique financial situations and needs. Call today to make an appointment and learn how we can help you too.