Software vs. CPA – How to File Your Taxes

Tax season.

 

Those two words are enough to cause anyone’s blood pressure to rise and their stomachs to churn. 

 

The amount of information that has to be gathered and then submitted to the state and federal governments can seem overwhelming.

 

Over the past decade, there has been a rise in tax-prep software programs that allow people to file their taxes themselves. Depending upon the service, filers need to submit a variety of information and then complete the forms.

 

Of course, there’s the traditional method, which means having a competent CPA who handles your finances also file the taxes. This approach makes a great deal of sense, since your CPA will already have most of the information right at his or her fingertips.

 

While you may be tempted to use software to file taxes for your business, it’s worth taking a look at what the payoff can be when you’re working with a professional.

 

While the IRS may work with you in the event of a minor mistake or error, the penalties for misfiling can be strict – plus you’ll have to hire a CPA and attorney to help you correct the mistakes.

 

Financial Information

Filing for your business isn’t as easy as doing it as an individual. Items like payroll, investments, operations, upkeep, and 401K programs require a great deal of knowledge when it concerns tax preparation. In addition, this data has to be properly documented and accounted for when your business taxes are filed.

 

Technology

Tax-prep software is built and designed for ease of use, and while that may be the case, a professional CPA firm has access to software that’s much more sophisticated. These programs are built expressly for professionals, and represent a major investment on their part – and one that pays off for their clients.

 

These advanced programs enable your data to be automated, which greatly reduces errors. Features include being able to directly scan forms and records, which speeds up the process and allows you to be proactive if you need to budget money for tax payments. Plus, the personnel using this software have received training on how it works. 

 

Complicated Situations

Your business and its finances can create complicated situations that require more knowledge and information than a software program can offer. What can take a normal business owner hours of research in regard to tax preparation rules, can be addressed quickly by trained CPAs who ensure that everything has been done correctly. 

 

The Human Element

You can’t sit down with a tax-prep program and have a discussion about the financial goals of your business, and its future. You’re also able to draw on a CPA’s real world experience and his or her knowledge of how to plan and strategize. 

 

In addition, you can reach out to your CPA throughout the year, not just during tax preparation season. Having a valuable resource who knows your business, and can provide you with advice on other financial subjects makes all the difference.

 

Partner With Taurus CPAs 

 

Using tax-prep software may be sufficient for people who want to take care of their personal taxes, but when it comes to filing for your business, a professional firm staffed with experts is the answer.

 

Contact us today, and let’s get started.