Tax season is the time of the year that many people dread most. Filing taxes is a daunting task, especially if you’re not familiar with the process or good with bookkeeping. Fortunately, there are tax professionals who can help!
Licensed Professionals with Your Welfare in Mind
Adams Accounting Solutions specializes in handling all aspects of small business and individual tax return preparation. We keep up with ever-changing tax codes so we can explain changes to our clients and apply them to each return we work on. Our goal is to help clients make the most of their unique situations at tax time.
That being said, we’ve learned during our years in business that not everyone wants to use a licensed CPA or accounting firm to do their taxes. There are some out there who feel confident they can do the job themselves — with the help of one of the many tax prep software solutions on the market. Since we believe that educated clients make the best decisions, let’s look at some of the advantages and disadvantages of using tax preparation software. Whether you’re a small business owner or an individual taxpayer, we want you to have the knowledge you need to make the right decision for your situation.
The Benefits of Using Tax Prep Software
Tax preparation software packages shine when it comes to less complex tax situations. They’re a good solution for individuals with simple tax returns where relatively few inputs are needed. If your situation is more complicated, your tax return may still be a challenge, even with automated software.
The tax return filing process is often accelerated by using tax prep software. If you find yourself with free time on a weekend, you can sit down at the computer and knock it out in just a few hours. Your tax return will be off to the IRS in no time. And you didn’t have to make an appointment with anyone or have long drawn-out conversations about it!
One thing to keep in mind is that if you’re ever audited, the software company probably won’t be any help. A licensed CPA, however, will. Most accounting professionals go to bat for their clients during an audit, interfacing with the auditor and answering questions about the way the return was prepared.
Most people with simple tax needs are fine with the cost of tax preparation software. It’s nearly always less expensive than hiring an accountant.
The Drawbacks of Using Tax Preparation Software
As with most things, there’s a flip side to all this. One of the significant drawbacks of using tax software is the potential for errors. While software can reduce errors, it’s not foolproof. Users occasionally make errors when entering information, resulting in an incorrect or incomplete tax return. Also, the software may not be able to handle complex tax situations.
Another drawback of using tax software is the lack of personalization. While this tool guides users through the process of filling out tax forms, it can’t provide the personalized help and advice that professional accountants can. Each taxpayer’s situation is different, and software only goes so far in pulling information together for a tax return. The guidance of a tax specialist is invaluable.
If you’re tech-savvy and have simple tax needs, doing taxes yourself using tax prep software may work well for you. But even the simplest software requires a basic level of computer skill that some people just don’t have. If you’re not comfortable with technology, you may end up more frustrated than anything else.
Leave the Tax Preparation to Us!
Instead of worrying about whether tax prep software will work for your situation, give us a call at Adams Accounting Solutions instead. We’re the experts when it comes to tax preparation and filing. We’ll consult with you, help you gather the required documentation, and guide you through the process to get your tax return filed on time. Whether you own a thriving business, have multiple rental properties, or just need to file an individual return, we can help. Make an appointment today!
Richard Adams is a graduate of Benedictine College in Atchison, Kansas, with dual majors in Accounting and Business Administration. He is also a graduate of Wentworth Military Academy in Lexington, Missouri.