There are endless claims that tax software can simplify the tax filings for individuals. The claims are not false, still, accountants are enjoying a healthy customers-base in the form of individual clients. So, do most people file taxes on their own or they hire accountants? Or, more importantly, should you hire an accountant or not?
Let’s do a deeper analysis.
Going back a decade back, hiring a certified accountant could take off the tax pressure and hassles involved. Along with that, they could have helped with some tax deductions that most common people don’t know about. Moving to present, we have software that can automate the filing processes and calculate the amount without errors. With the internet, a little search can find the tax regulations that allow more deductions for your income. So, tax filing is easier now, but before you make a choice that you can do taxes on your own, you need to analyze a little on these factors.
Ask yourself if you have enough time in your schedule to update all the financial transactions of the year on the software before the deadlines arrive. Tax filing is not a simple data entry task and there are some minor complexities. Linking software with the bank account can make things easier, yet there are certain transactions and forms that will require some precious time from you. If you are one of the rare always-on-time personalities, you should be able to make the space to file taxes. However, the one who likes to play it on the edge might not enjoy that privilege. So tax filing will require a professional help as they command the required expertise for faster filling.
It is important to plan your budget on what is the amount that you can spend for the tax purposes. Preparing taxes on your own is almost free as all the forms are available for download online on the IRS website. Those relying on software can use most of the forms built-in. Since there are some tax software that offers free usage for individual payers, you can go on without requiring to pay anything. But that is true with the smaller income bracket only. For larger income, the taxes are higher and expenses are complicated. So are the form of filing and deductions. In those circumstances, going on your own you might not be able to file the right amount. Hence, a payment for the accountant is acceptable for the amount they can save for you.
The traditional paper filing is diminishing for the new technological solutions as they are offering more convenience. If your plan is going for paper-based tax filing without taking help of the sophisticated software then your plan doesn’t sound smart. Even if the taxpayer decides to go with the software, the apt skills with the software are required. Usually, as a first-time taxpayer, it is possible they are not able to gain command of software and may end up filing wrong tax amount, which can eventually invite penalties. Be sure about the technology, before you take the final call.
Efforts of IRS and software developers have eased the tax filing compared to the hassles that were eminent some years back. Now with the introduction of cloud-based technologies, you can access your tax software using any device, from anywhere. With such features you can track the expenses and income anytime and be doing taxes does not remain a herculean task. At the same time, internet offers the abundance of information for the willing ones that can help you master the tax filing even as a first timer. But that is possible when you have got the right quantity of time, budget, and technology available at service.