Every year, as tax season looms closer, business owners across the country have to make a decision: should they DIY their taxes or hire a professional tax preparer? For some business owners, the answer is clear-cut. But for others, it’s not so simple. In this blog post, we’ll take a look at some of the key factors you should consider when making your decision.
One of the most important questions you need to ask yourself is how will this decision to hire a tax preparer or DIY your taxes impact your emotional well-being around money? Some business owners feel anxious about relinquishing control of their finances to someone else. Others find the whole process of doing their taxes daunting and would rather outsource it to someone who knows what they’re doing. There’s no right or wrong answer here; it’s all about what makes you feel comfortable.
Another key question to consider is whether you have the time to dedicate to doing your taxes yourself. If you’re already stretched thin, trying to wear all the hats in your business, it might be worth paying someone else to do your taxes so that you can focus on running your business. On the other hand, if you have the time and you’re relatively organized, you might be able to save yourself some money by doing your taxes yourself.
Finally, you need to think about the complexity of your business finances. If your business has a lot of moving parts and you’re not sure where to start when it comes to taxes, it might be worth hiring a professional. They’ll be able to help you navigate the complexities of filing your taxes and ensure that you get all the deductions and credits you’re entitled to.
The Pros of Hiring a Tax Preparer
- Save Time – The most obvious advantage of hiring a tax preparer is that it saves you time. Doing your taxes yourself can take hours, or even days, depending on the complexity of your business. When you hire a professional, they can do it in a fraction of the time.
- Get Expert Advice – Another advantage of hiring a tax preparer is that you’ll get expert advice. A good tax preparer will be up-to-date on all the latest tax laws and deductions, and they’ll be able to help you maximize your tax savings.
- Reduce Stress – Doing your taxes can be stressful, especially if you’re worried about making a mistake. When you hire a tax preparer, you can rest assured that your taxes will be done correctly and filed on time.
The Cons of Hiring a Tax Preparer
- Cost – The biggest drawback of hiring a tax preparer is the cost. Professional fees can range from $100 to $500 or more, depending on the complexity of your return.
- Loss of Control – When you hand over your taxes to someone else, you lose a certain degree of control over the process. This can be unsettling for some people who prefer to know exactly what’s going on with their taxes at all times.
- Risk of Identity Theft – Finally, there’s always the risk that your tax preparer could steal your identity or commit fraud. While this is rare, it’s important to be aware of the possibility when entrusting someone else with such sensitive information.
There’s no one-size-fits-all answer when it comes to deciding whether to hire a tax preparer or DIY your taxes. It all depends on your individual circumstances and what makes you feel comfortable. If you have any questions, don’t hesitate to reach out to a CPA or tax professional for advice. They can help you weigh the pros and cons and make the best decision for your business.