It’s 2020, and if you’re like most of us, almost everything you do these days is online. Social media, business meetings, purchases, zoom chats, dating, bill paying, texting, tweeting and Snapchatting can occupy a chunk of your daily activities. Online banking and shopping, healthcare portals, Cloud photo storage, pay stubs as PDF’s and telecommuting are all ways we can streamline our tasks by going online, including filing taxes. But is it smart to use an online tax accounting software service instead of a Certified Public Accountant (CPA) for your taxes?
Benefits of a CPA Versus Tax Software
One of the most obvious benefits is that a CPA can assess your situation and offer you ways to save taxes today, tomorrow and down the road. What is unique about having a CPA or accountant file your taxes is they are familiar with your situation. This is so important because in the event you are audited or questioned about certain write-offs or business expenses, you have a tax preparer or CPA who is familiar with your situation! At Corporate Capital we have our clients back and would love to have yours too.😊
This is important so you never feel you are alone or have to deal with the IRS without a team to make you feel at ease. Often you can feel overwhelmed so we strongly recommend hiring an accountant if your tax situation has evolved or changed in any way, such as filing an LLC, Partnership, S Corporation, or C Corporation, and if you have business income or rental properties to account for at this time.
Another benefit of having a CPA is giving you future tax guidance by offering ideas to help you improve your tax benefits down the road and being available to answer your questions and concerns now. Our bookkeepers, tax accountants and CPAs can help you find deductions that online tax services often don’t, like opening up an IRA to save your hard-earned money. This is one example of many available to you but you must stay on top of the ever chagning tax code. Tax accountants can also give you a correct assessment of your tax payments so that you don’t underpay your taxes and avoid penalties. This is important to look at as often as you can but each quarter to make sure you are making accurate and on time quartely payments.
What About Cost?
Initially, you’ll invest less in a tax software package than you will to hire a living, breathing and good at their job tax consultant (and one who stays up-to-date on all tax-related services). Online software ranges from free Federal tax filing to TaxAct, TurboTax to TaxSlayer, and others around $100-300. A “free” return sometimes can add up when you start having to add different schedules, so be aware of any additional costs. It may seem appealing until you look at what you are really getting with the help of a good tax accountant who starts asking for a higher rate. Unless you have a minimal amount of deductions, income streams, or investments, we recommend using a professional accountant or CPA.
With a Certified Public Accountant, you get so much more:
– A more sophisticated (better) software with advanced programs that properly organizes line items, so you have less chance of mistakes (and possible audits).
– A more reliable picture of your finances and goals for you and your loved ones in the years to come.
– Anticipating and offering you tax savings on how you can save on your children’s education as well as lowering your taxes on capital gains.
– Your tax accountant is also available to help you throughout the year if questions arise.
Time is another factor to consider if you have complicated business and investment situations. While you may be able to handle going through the taxes yourself using an online tax software, you may also end up investing in a lot of research (and spending hours in the process) when your CPA can do it so much faster. You could be spending that time growing your business, making new relationships and simply bring in more income using your unique skills. And we haven’t even addressed the stress factor! Many people find themselves anxious and stressed, trying to make sure they don’t overpay, underpay or make mistakes that could result in an IRS audit in the years ahead. Give yourself the peace of mind you deserve!
Remember, the tax filing countdown for 2019 is ON! You have less than a week left to file your S Corp and LLC – Partnership tax returns, and only a few weeks to file C Corp, LLC – Single Member and Personal Returns. If you want help filing your 2019 taxes, Corporate Capital welcomes you to learn more about working with our qualified tax professionals. We invite you to give us a call today to book a FREE consultation, and get the peace of mind you are looking for this tax season! Cheers to a prosperous 2020 and the financial freedom you deserve!