The benefits of using a cpa
According to Denver CPA Carl Wehner, accountants pay around $1,000 to $6,000 for their software, which is far more sophisticated than the products sold to consumers. These more advanced programs have the ability to quickly scan your information and organize line items and forms correctly. By automating much of the data entry and organization, there’s less chance for human error to hurt your tax return.
Like a good family doctor that knows your medical history, you can develop a relationship with an accountant so that he or she understands your family’s financial situation and future goals. According to Wehner, who has been preparing taxes for 45 years, “A tax professional is often able to make valuable tax savings suggestions that a software program just can’t anticipate.” The value of this advice can easily exceed the additional cost of consulting with a professional. For example, a tax accountant can provide you advice on tax-friendly ways to save for your children’s education, or how to reduce taxes on your capital gains.
A CPA can answer your questions year round
As a trusted professional, a good accountant will be able to answer important questions that arise not just during your annual consultation, but at other times during the year.
Taxpayers who find themselves at the center of complicated business and investment matters may even have the skill to sort through their taxes on their own, but is it worth their time? A CPA is so familiar with the system, he or she can quickly and easily accomplish tasks that might take even skilled taxpayers hours of research. For busy non-tax professionals, their time can generally be better spent earning money in their area of expertise. Even if your tax situation is straightforward, hiring a professional will save you the time and stress of doing your taxes.
The Benefits of using tax software
There is no way around the fact that you MIGHT pay less for a software package than if you hired a CPA or another qualified tax professional.
The Bottom Line
Your comfort and familiarity with IRS rules, and the complexity of your finances should be the key deciding factor. Saving a few dollars to prepare your taxes through your purchased tax software might actually cost you hundreds or even thousands of dollars in tax savings.
Remember, at the end of the day, you get what you pay for.