CPA or Tax Software: Which is Better?
Tax preparation is a crucial part of every business but entrepreneurs are confused whether they do it themselves or hire a professional. Although there is an increase of tax software being developed for do-it-yourself tax preparation, Certified Public Accountants (CPAs) are never out of the picture.
Tax Preparation Software
One can acquire tax preparation software for £6 to £72, way cheaper than hiring a tax preparer which costs £60 and a CPA which is two times the price. The money you saved is the most appealing advantage of having tax software.
Another benefit is speed. If you have all the essential papers, then you easily prepare your taxes in just an hour or so. On the contrary, CPAs may take a few days or weeks to prepare your books.
Tax software is user-friendly as they guide you step by step in preparing your taxes, which is convenient if you are not much familiar with bookkeeping.
Certified Public Accountants
Professional accountant have their own tax software which is more advanced in collecting and analysing data. The sophistication of the software prevents human error and provides adequate information regarding the financial status of your business.
An accountant easily understands the financial needs of your company. He can provide you with efficient suggestions or you can seek his consultation in order to save your business from tax issues. As they are familiar with your system, they can quickly obtain the essential tasks of reducing the stress if you are to prepare your taxes.
Hiring an accountant allows you to concentrate in growing and developing your businesses.
Deciding whether to use software or hire an accountant should be based on what you aim for your business and how complex your finances are.
Self-employed entrepreneurs choose to spend a few pounds in purchasing tax software. On the other hand, large corporations or medium businesses prefer hiring a CPA.