As much as we all despise having to prepare and file our taxes every year, approaching it proactively really is the best way to stay on top of them, and the only way to avoid making costly errors or risk missing deadlines that could incur penalties.
Being proactive for many of us, means hiring a professional in plenty of time; giving them ample occasion to assemble all of the paperwork and get any information from you that they might need. But what if you’re still yet to be convinced that hiring an accountant is the best way to file your taxes on time? The following information, may just help you decide:
Tax filing takes up a lot of time…a professional will leave you free to focus on other things
Hiring an accountant will certainly free up your time, and safe in the knowledge that your taxes are in good hands, you can continue to run your business without the added stress and worry.
Tackling your own taxes also means getting to grips with the U.S tax code, and this can be complicated and tricky for laymen to understand. You may get your head around it eventually, but it will be time consuming as you try to assemble all of the relevant paperwork, and no doubt stressful. An accountant is trained to keep on top of the tax laws, as not only are they often complex, but they can change often, too.
Can’t I just use tax preparation software?
Of course you can rely on online help, but it can often leave you uncertain of whether you qualify for a deduction, or not. Take health insurance premiums; in some cases, they are a permissible deduction, but not always. Confusion can lead to you missing out on making savings, or risking an audit or a penalty if you make a deduction that you’re actually not entitled to.
Surely I can’t make too many mistakes by preparing and filing my own taxes?
If preparing and filing your own taxes was that simple, then there would be no need for accountants to even provide assistance with tax preparation. Filing your own taxes, means that you – and only you – are fully responsible for everything that you do, and without someone else to check your returns, you will be held fully responsible for any penalties or extra charges that you might incur. Even if you think that you can prepare everything yourself, it is advisable to hire an extra pair of professional eyes to check that you have everything you need, and to help ensure that you don’t miss any deadlines.
Will professional help be available only at tax time?
No! The best accountants will work proactively with you all year-round, helping you develop a workable plan of action that’s tailor made to suit your individual needs and circumstances. Leaving your tax preparation until the last minute is never advisable, but even if you have left things a little late, it is never too late until the deadline has passed!