Individuals have an important decision to make each year at tax time – hire a tax accountant or use software. The decision will depend largely on how complicated an individual’s financial situation is, their income, investments, stocks and other factors.
One of the major benefits of hiring a tax accountant is that minimizes the potential for an audit. That’s especially important for high-income earners and those with stocks and investments. The IRS audits approximately 4 percent of all returns. The chances increase for people making over $200,000 per year, business owners – especially sole proprietorships, the credits and deductions claimed, if foreign assets are involved, and the complexity of the return.
Anyone with those risk factors would do well to seek the services of a tax accountant. They’re highly trained professionals that are knowledgeable about all aspects of tax law. Individuals consulting a tax accountant for the first time are usually surprised at the number of legal deductions they’ve been missing. A tax accountant can also provide advice about tax planning to lower your tax burden and help manage finances more effectively.
Tax accountants have access to professional-level tax software that’s far more sophisticated than that available as a single purchase or online as a service. A tax accountant is available to answer questions and provide guidance throughout the year, not just at tax time. Complicated business and investment issues that can be handled with alacrity by a tax accountant can take individuals days or weeks to research.
Most people simply look at the cost of consumer tax software as a primary benefit. Software to install on a computer can cost as little as $50. Online tax software fees are based on the complexity of the services requested and are charged when the taxes are completed. Software solutions are less expensive but really aren’t designed for those with complex tax forms.
Using tax software is easy, user-friendly, and faster than the services of a tax accountant, who make take several days or a week to complete taxes. Tax accountants must deal with sometimes hundreds of clients one at a time, while software servers can accommodate millions of users at the same time.
At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs. We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!