The cost of hiring a tax preparation services is a big discouragement for many business owners, more so start-ups. The more experienced and reputable the firm is, the higher their rates. You could higher the low end tax services but at the back of your mind you will always be wondering if you should trust them with your company’s financial information. Even so, when you hire the most reputable firm, you will spend hours explaining things to them and organizing papers. The next best option would be to do your taxes yourself.
Can You Do Your Taxes Yourself?
Of course you can. The opportunity to do your own taxes became very popular in the 21st century thanks to the emergence and evolution of online tax software programs. You do not have to hire a professional since all you have to pay for is your tax filing fees, and software usage fee. More importantly, you do not even have to share your company’s financial information with anyone. That’s not all, you will learn more about money and taxes when you do your own taxes.
Sounds Great So What Can Possibly Go Wrong?
A lot of things can go wrong when you do your own taxes instead of hiring tax preparation services. First of all, the United States Tax Code is very complicated. Tax professionals spend a significant part of their education learning it while you have to rely on a few basics that you stumbled upon while familiarizing yourself.
Secondly, online software programs have limited support. When you combine this with the hours you will spend organizing, preparing and submitting your returns, chances are very high that you will make errors. You could lose quite a bit of money considering that there may be very many deductions and exemptions you may not be aware of. You could also run the risk of not paying enough taxes. The IRS can be very unforgiving when it comes to back taxes. The penalties and interests that you will be charged can pack quite a punch.
You should hire professional tax preparation services because they will bring their expertise and knowledge to the table. They are more familiar with the IRS tax code and are always up to date on any changes made. They will save you a lot of time which you can use to pursue other interests in your business. They also offer more support than any online software program can.
Save thousands of dollars in taxes by hiring qualified tax preparation services. The main goal is to avoid any kind of altercation with the IRS. If you receive the right kind of tax advice and take great care in how you prepare your tax returns, you will ultimately avoid criminal tax charges and back taxes.
You can use an online software program to save on costs but it is not in a position to give you judgment calls on complex tax returns. More importantly, you could lose a lot more in the long run in strategic advice and missed deductions.