Tax season is a time during the year that should be a very easy process with as little stress as possible. If you are someone who is ready to file your taxes, make sure that you are making an educated decision on if you are going to go through a CPA/Accountant or use tax preparation software like Turbotax. Whether you decide that choosing a CPA or Tax Prep Software is all up to you. Both have great upsides as well as downsides, but no matter what you choose, both will be able to get the job done in a timely and efficient manner.
Using Tax Software
First, we are going to discuss the pros and cons of using tax software and why you may want to choose Tax Prep software as your primary mode of completing your taxes.
- Speed is key when it comes to using tax prep software. It is not unknown in this day and age where technology is very fast and very efficient. It is able to get all of the information that you need in order to properly file your taxes in just moments. If you have all of your required documents, your taxes can be completed in under an hour.
- Filing taxes online is extremely simple. You are lead through every step of the process. If you are choosing between CPA v. Turbotax for example, there is an amount of simplicity that goes along with filing online that cannot be understated.
- When choosing between CPA v. Turbotax for example, Turbotax will give you additional support such as tax preparation software. This software offers the feature of Audit Defense from Tax Resources, Inc. This service can be extremely helpful during a tax audit.
- One of the great parts of using online tax software is how cost effective it is. You will save much more money on your return than if you were to go and see a CPA in person.
- When choosing between CPA v. Turbotax, realize that turbo tax will give you the peace of mind knowing that everything is happening pretty much instantaneously versus a CPA who you are trusting to make sure that all of your documents are being filed and submitted to the government correctly.
- Online software is not suitable for difficult monetary situations. If you find that you are experiencing a difficult money situation, it may be better for you to see a CPA/ Accountant.
- You don’t get that same human touch than if you were to go in and meet with a CPA/ Accountant. So if you have any questions regarding your taxes, you may be in the dark.
- You are fully accountable for the quality of your return. When you file with Turbotax, you are responsible for making sure that all of the information you are providing is accurate. It is always recommended that you do your taxes early, set them aside for about a week before filing. This way you have a good amount of time to make sure that you have everything you need.
- If you received payment from different states, then you will have to file multiple times, this can be counterproductive as it will cost you more to file multiple times.
Using a CPA/Accountant
Next, we will talk about the pros and cons of utilizing a CPA/Accountant and why choosing a CPA/Accountant may be the best option for you and your situation.
- When choosing between CPA v. Tax Prep Software, you need to realize that while tax prep software is very fast and simple to use, you lose out on that human touch that you get when working with a CPA/Accountant. If you have worked with the same CPA in the past, they will know more about you than any software. Just like a family doctor, they will be used to you and your tax history, making your experience better and better than past tax seasons.
- You are always able to get in touch with your CPA/Accountant. When you do your taxes with a software, during tax season they are great, but once tax season is over, that’s it, you are in the dark until the next tax season. Your CPA will be there for you if you have any questions throughout that year. If you are in need of advice, they will be there for you to make sure that you succeed with your taxes regardless of the time of year. They will also be able to help you strategize for the next tax season which is something that you won’t get using a software.
- If you are faced with a complicated issue that you are unable to figure out on your own, a CPA will be able to save you time and effort by helping to find a solution to your problem.
- When you file with a CPA/Accountant, it takes much more time to process all of your documents. Unlike when using software, everything is done by hand rather than the internet. You won’t see your return for longer than if you were to use tax preparation software.
- It is more expensive to go through a CPA/Accountant than if you were to use Turbotax for example. Though you will have that sense of human interaction, and you know that you will be able to have all of your questions answered thoroughly, you will end up spending more out of pocket than if you used tax preparation software.
When it comes to filing your taxes, the choice of what you decide to do is entirely up to you. It is up to you as an adult to make the right decision for yourself and your financial situation. If you find that you are having trouble with your taxes, you may be more inclined to go and see a CPA/Accountant. If you are fine with your financial situation and feel confident about having everything worked out, then go ahead and use Turbotax or any other tax software you like.
Make sure that when tax season comes that you sit down and really think about how you are going to approach tax season this time around. If all goes well, you will end up with a very pleasant experience as well as a great tax return that you can put towards something fun like a vacation. No matter what you end up choosing, it will be the right decision for you and that is all that matters.