What accountants do that software doesn’t
As April 15th approaches, it’s time to think about filing your tax return. For younger folks or those with very uncomplicated finances, using a tax accounting software program can be a fast and easy way to prepare a return. As your finances become more complicated, however, so does filing your taxes.
Any change in financial circumstances, like taking out a mortgage, buying and selling stocks, starting your own business, moving to take a new job, receiving an inheritance, etc., will all need to be taken into consideration when preparing your return. You can’t assume that your accounting software will properly calculate the impact these actions will have on your taxes.
Understanding your finances can be tricky, and there are times when you need to involve a professional. Hiring a CPA can increase the accuracy of your tax return as well as reduce your chances of being flagged for an audit by the IRS. There are a number of other ways an accountant can improve your finances too, including protecting your investments and income from over-taxation going forward.
Going beyond each line item
One of the biggest problems with accounting software is that it’s designed to analyze your tax filing one calculation at a time. You can see this happening when you use the program because a new estimate of what you owe comes up on the screen with every number you enter.
A CPA, on the other hand. will look at the whole picture rather than line by line calculations, giving them the ability to spot individual exceptions that can lead to deductions. By gaining a comprehensive understanding of your finances, accountants can recommend better ways to budget and invest your money in the future.
Don’t just do taxes; plan for them
Another benefit of relying on accountants vs. accounting software, is that a CPA can help you plan for the next year’s taxes. Is there anything worse than getting hit with a large, unexpected tax bill at the end of the year? An accountant can help you avoid that scenario by structuring your withholdings to more accurately reflect your actual tax burden.
At the San Diego CPA firm, GYL, we can help you reduce your chances of an audit by ensuring the accuracy of your tax return. When you partner with GYL, you also have access to a wide range of both personal and business expertise. We’re here to help with everything from tax preparation to investment strategy to business accounting services in Southern California.
Call today and set up a free consultation to discuss how we can help you make the most of your money.