Should you entrust your taxes to an accountant or get the job done with one of several tax programs in the market today? That actually depends on your case because each method has it good and bad side. Although the latest tax software packages can make it a cinch for you to accomplish and manage tax forms, they may not be good for certain complex tax situations or help people who are strangers to numbers and legalese. However, both methods are tax deductible. In this article, I'll tell you the advantages and disadvantages of the two methods:
Do-it-yourself tax software can help lots of people since they are user-friendly and you don't require a degree in accounting to utilize them. With just a few simple mouse clicks, these interactive programs can teach you in plain English how to tackle your tax forms. Some programs can even obtain information from several investment accounts and put all the right numbers in all the right places. This makes complicated investment statements easy to manage.
What's more, small business owners can save a bundle on accountant's fees. These tax programs can be bought for merely $99.95 or less (including updates) in contrast to accountants' fees that can range from $200 (for a simple small business return) to more than a thousand dollars for complicated returns. With tax software, you don't have to rush because you can work at your own pace. In America, the usual deadline of accountants for tax information is March 1 or March 15. By using tax software, you can extend that deadline as long as you follow the government's deadline.
The bad side of tax software is that they only work with the things you give them. They can place numbers in the correct columns as well as add and subtract but they can't let you know if your deductions are allowable, tell you which deductions you've overlooked, or give strategies for tax planning. Neither will they remember your long term plans and tell you whether you should deduct and depreciate the cost of your business vehicle or determine travel expenses on a mileage basis.
If you commit a mistake in calculating your deductions with tax software, you are in danger of being audited or penalized. This can be prevented if you hire an accountant who can suggest better strategies for tax record purposes. In case you get audited, an accountant will help you every step of the way. Finally, an accountant will be more objective in calculating your taxes. Since an outside accountant has no emotional attachment to your business, he or she is the best person to take care of your taxes.
Do-it-yourself tax software can help lots of people since they are user-friendly and you don't require a degree in accounting to utilize them. With just a few simple mouse clicks, these interactive programs can teach you in plain English how to tackle your tax forms. Some programs can even obtain information from several investment accounts and put all the right numbers in all the right places. This makes complicated investment statements easy to manage.
What's more, small business owners can save a bundle on accountant's fees. These tax programs can be bought for merely $99.95 or less (including updates) in contrast to accountants' fees that can range from $200 (for a simple small business return) to more than a thousand dollars for complicated returns. With tax software, you don't have to rush because you can work at your own pace. In America, the usual deadline of accountants for tax information is March 1 or March 15. By using tax software, you can extend that deadline as long as you follow the government's deadline.
The bad side of tax software is that they only work with the things you give them. They can place numbers in the correct columns as well as add and subtract but they can't let you know if your deductions are allowable, tell you which deductions you've overlooked, or give strategies for tax planning. Neither will they remember your long term plans and tell you whether you should deduct and depreciate the cost of your business vehicle or determine travel expenses on a mileage basis.
If you commit a mistake in calculating your deductions with tax software, you are in danger of being audited or penalized. This can be prevented if you hire an accountant who can suggest better strategies for tax record purposes. In case you get audited, an accountant will help you every step of the way. Finally, an accountant will be more objective in calculating your taxes. Since an outside accountant has no emotional attachment to your business, he or she is the best person to take care of your taxes.
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If you are facing an IRS audit or have other tax problems, contact the experts at Guardian Tax Resolutions today by visiting GuardianTaxResolutions.com for a free consultation and quote.