Should I do my own taxes or hire a professional?
Will Rogers added to Ben Franklin’s famous quote: “The only difference between death and taxes is that death doesn’t get worse every time Congress meets”
What is clear is that taxes can be complicated and are not getting any easier. Should you prepare your own return, or hire a professional?
There are many different considerations when deciding who should do your taxes. One thing to remember is that no matter who does your taxes, according to the IRS, you are responsible for that return.
So, what should you do?
When making this choice, keep these guidelines in mind:
Time vs. money
Do you have the time to prepare your return? If you spend your time creating your return, will your business suffer your absence?
It’s a legitimate question.
Paying a tax preparer to do your taxes is a cost to the business. What does it cost if you don’t attend to your business for a few days to a few weeks?
If your time is better spent working on your business and not on your taxes, hire a preparer.
Numbers and Software
Are you a numbers person? Do you love learning new software systems?
If you enjoy numbers, calculations, record keeping, and using software like TurboTax, maybe you are the best person to handle the tax return. If your talents do not lend themselves to spending hours with a calculator, handling receipts and bank statements, or searching software knowledgebase articles for guidance, maybe consider hiring a professional.
Tax Law Familiarity
Are the ins-and-outs of tax law your nighttime reading? The 2017 tax reform law was 500 pages not including IRS interpretations and instructions. Keeping up-to-date with tax law changes is a time-consuming process. If you are well-versed in tax law, you might be prepared to do your own taxes. If tax law is not your forte, check out a professional
Doing your own taxes may save you the money you spend on the professional tax services. That spend is a business expense and might just save you more money if you have a great tax professional. As a small business owner, your time is money. Unless you’re an expert in tax laws and love the minutiae of record keeping, consider hiring a professional to do your taxes.
Want to learn more about the new tax law? CFOshare can help. With more than a decade of experience, our team provides worry-free financial and operational services to entrepreneurs, small businesses, and nonprofits. Contact us for a free 6×60 review today. We’ll sit down with you for an hour to discuss your specific needs.
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