Organizing your finances and staying on top of your taxes is essential for business owners. Whether you choose to work with an accountant or file your taxes independently, it's important to remember to keep track of your income and expenses throughout the year. Tax professionals can save you time and money, while also ensuring that you follow the applicable tax rules. The IRS offers free tax assistance through the Voluntary Income Tax Assistance (VITA) program, if you're eligible.
Some tax lawyers may provide tax preparation and planning services, although not all of them are qualified to do so. To make sure that your taxes are done correctly, it's important to bring all the necessary documentation for income and deductions. Tax accountants have the expertise to prepare complex returns for businesses, corporations, associations, nonprofits, and trusts. Doing your taxes independently with tax software can save you money compared to hiring a professional, but working with a CPA has many benefits. As a general rule, tax professionals are prohibited from charging an excessive fee for providing tax services or charging a fee based on the information in your return. The free service offered by H&R Block applies to W-2 employees with dividend and interest income and without itemizing.
If you're knowledgeable about tax matters, you may not need to hire a professional. Additionally, ask them how they manage payments and if they will be able to perform all their services remotely. According to the IRS, about 60% of people prefer professional tax preparation over DIY solutions. If you're comfortable with tax preparation software and confident in your DIY skills, you can do your taxes yourself in a night or weekend and save yourself the charges. Hiring a CPA may be worth the money if it reduces your stress and makes filing season easier. Accountants can also consult with their clients on tax-related issues such as compliance and regulations, as well as methods for reducing taxes.
Ultimately, it's up to you to decide whether or not hiring a professional is worth the cost.
