Barack Obama made the statement, “If you think education is expensive, wait until you see how much ignorance costs.” While our commander-in-chief was not referring to the pros and cons of using a tax software versus hiring an accountant, I’d dare say his statement could not be any more true in this matter.
Why should I hire an accountant when I can buy TurboTax online, answer a few questions, upload a few documents and have my taxes tied up in a nice bow within an hour? I’m actually very glad you asked.
TurboTax and other tax softwares are great for very simplified returns. Generally for an individual who plans to take the standard deduction and has one income stream, a tax software is the best option. However, for small business owners there are three advantages to hiring a professional for your tax needs.
Errors in filing. People who file their own taxes make 200% more errors in filing than those who hire a professional. The errors may result in receiving a smaller return, having to pay more or in the worst case, trigger an audit by the IRS.
Protection during an audit. Whether an audit is brought on by an error created by you or you’re just the lucky recipient of the IRS random selection, if an audit occurs and you have used a tax software and you have self prepared your taxes, then you are left to also self defend any information you reported. When you hire OTBTax professionals, we defend you in and during the audit and will help walk you through the audit process helping you to avoid more fees and taxes along the way.
Accounting Tax softwares are designed to be a one size fits all program using standard deductions and standard language for all returns. There can be deductions or allowances that a tax professional would know to look for within the tax code that would not be included in a one size fits all program. When hiring OTBTax, we will work to know your business to get you the best refund or the lowest tax liability available.
Hiring a tax professional may appear to be more expensive at first glance just comparing cost of software to the initial hourly cost of a tax accountant. However, the ignorance of not fully understanding the benefits of hiring a professional may indeed prove to be more costly. For your specific needs or questions concerning the next steps in acquiring tax services for your business, please contact our office.