We get it – nobody actually wants to do their taxes. When tax season comes along, it may be tempting to take the easy (and less expensive) way out and use a tax preparation software like TurboTax. However, the easy way out may not be so cheap and easy in the long run. Here are just a few reasons why it pays to hire a CPA to file your taxes:
Don’t Miss Important Tax Laws
The legal rules behind income taxes can get complicated, and there are many issues that the average person may not completely understand. By hiring a professional accountant, you can rest assured that you are not missing important tax laws that can create several headaches down the road.
Optimize Your Tax Return
TurboTax walks you through the tax process, but it can’t replace the knowledge and advice that a CPA has. A CPA can take a thorough look at your financial situation to find easy tax write-offs that you may not have known about. By skipping a CPA, you could be missing out on hundreds of dollars (or even thousands) on your tax return. For example, there are several tax write-offs for having a home office.
Extra Protection if You Get Audited by the IRS
While it is unlikely that the average, middle-class citizen will get audited, this is always a possibility to keep in the back of your mind. Tax preparation software may offer some protection when it comes to being audited, but they won’t be able to provide the same support as a tax professional. A CPA can prepare IRS documents, represent you in meetings with the IRS and carry you through an action strategy should the situation arise.
Navigate Unique Financial Situations
Not everyone’s financial situation is cut and dry. If you are looking to make a change in your professional or personal life that would impact your finances in a large way – e.g., opening your own business, dealing with foreign income, approaching retirement, etc. – we recommend talking to one of our Greeley accounting professionals so that they can offer their expert advice.
Future Planning Accounting Advice
An accountant doesn’t just file your taxes for you, we can help you set financial goals and strategize with you to ensure they are met. Whether your long-term goals involve getting married, buying a house, opening up your own business, etc., a professional in the accounting sphere can offer valuable insight to turn those dreams into a reality.
Did You Know? The Difference Between an Account and a CPA
Before we sign off, we’ll leave you with a bit of trivia that you can use to impress your social circle. Many people use the terms CPA and accountant interchangeably, but there is a slight difference in education level and responsibility. Accountants must have a four-year degree from an accredited institution. In order to become a CPA or Certified Public Accountant, they must pass the Uniform Certified Public Accountant Examination. Additionally, CPAs carry more responsibility than accountants because they can perform audits and other high-level financial services.
Our team of CPAs and accountants at Yeater & Associates Greeley office is ready to help you with any of your tax needs. Give us a call at 970-378-4830 to get started today.