Using a computer program to prepare your taxes may seem very simple, and of course it's usually more affordable than hiring an actual accountant to guide you through tax season. However, when it comes to your money and especially preparing your taxes, you don't want to only think of the cost of a program versus a professional; in the long run, it can save you money when you hire a professional to manage your taxes for you. Note why this might be true and why an accountant can often be the better choice, come tax season.
1. Red flags
A computer program may note something unusual or that isn't in agreement with each section of your taxes, but they often cannot tell you if it seems that you aren't making enough money according to the expenses you're claiming, if you may have overlooked a deduction according to your filing from last year, and so on. An accountant who is familiar with your business, your family situation, and your taxes overall can often note different red flags that may warn you about deductions you shouldn't be claiming or ones you're overlooking. In turn, you might get a larger return or avoid penalties and fees.
A computer program cannot give you advice on how to save on your taxes. You may wonder if filing separately even when married may save you money or if you should be using a different accounting program for your business, and your only way of finding out if these things would be better with a computer program would be to go through each scenario with your taxes to see which results in the lowest tax bill. This can be cumbersome and time-consuming, and you may be missing out on other ways of saving money. An accountant can often know immediately the best way for you to file in order to save money and get the best return and can advise on how to manage your money in the coming year so that next year's taxes are also as low as possible.
3. Financial reports
You can get different reports from a computer program, but they may not include everything you need if, for example, you're looking to get a business loan for your home-based business or are looking to ask for a reduction in spousal support based on your income. An accountant will be able to give you a report with all the information you need. No matter your reasons for wanting a professionally prepared financial report after filing your taxes, an accountant is usually the better choice over a computer program.
With this information in mind, don't hesitate to contact qualified accountants in your area the next time tax season comes around.Share
20 May 2016
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