Every year when it’s time to do your taxes, you have to ask yourself whether you should do it yourself or hire a professional. Generally, it is always a good idea to hire a tax professional to prepare your taxes properly. However, with advanced tax prep software on the market, you can be a tax professional too. That being said, you still may want to weigh out the pros and cons before you decide whether to hire a tax professional or use tax preparation software. Here are some pros and cons of hiring a tax professional.
Anyone who has sat down to do their taxes understands that it takes a lot of time. Unless yours are so simple that you can use an EZ form, reading through the tax laws, filling in the form, and calculating, your taxes can take hours. Tax professionals can prepare your taxes more quickly while remaining accurate. It is something you do not have; you should hire a tax professional.
Tax professionals will know what deductions you can get and apply them to your taxes, but there can be deducted as well. Therefore, if the cost of hiring a tax professional is holding you back from using one, knowing that their fees are tax-deductible may sway you to hire a pro.
Not only can a tax professional help you during an audit, but they can help prevent you from being audited. Tax professionals are far less likely to make any mistakes that would lead to an audit. However, even if you use a tax professional, the IRS will sometimes randomly audit taxpayers. If you are audited, whether triggered by an error or a random audit hiring a tax professional will be in your best interest. While you’re at it, you should also look into hiring a lawyer that specializes in taxes.
Even if you hire a professional tax preparer, mistakes can be made. However, a professional is less likely to make such mistakes. Though tax preparation software may have high-performance capabilities, it is still up to you as the user to put in the correct information. One typo can cause you thousands of dollars in penalties with the IRS. One mistake can snowball into thousands to tens of thousands of dollars because of interest. Therefore, if your taxes are even slightly complicated, you should hire a tax professional. Not only are they less likely to make a mistake, but even if they do because of your contract with them, they will have to rectify any issues that stem from their mistake.
If you ask most people why they will not hire a tax professional, it is due to the cost. However, most people don’t realize that the cost is not as high as they would think, and as mentioned before, you can write off their fees. If a person does not have the money to pay the fee upfront, it would be more economical to use free online software.
Tax Prep Software
As mentioned before, tax preparation software can be just as effective and reliable to use as a tax professional if your taxes are fairly uncomplicated. Unless you upgrade, the software’s purchase will be a one-time cost instead of a recurring cost each year. If you input the information correctly, most tax prep software is extremely accurate and reliable.
Hiring a tax professional is much like getting a great table at a popular restaurant; you have to do it in advance. In the spring, most tax professionals are buried in work. Therefore, if you use a tax professional to prepare your taxes, you should make an appointment well in advance. If you’re expecting a refund, it would be suggested that you make your appointment for January. If you wait till the last minute to hire a tax professional, you may not get your taxes done in time and could pay penalties.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.