As a tax and accounting firm, you might predict that we would discourage people from using tax preparation software such as TurboTax to prepare your income taxes. And, especially for small business owners, that prediction is completely accurate.

Allow us to provide 4 reasons why we recommend using a CPA over tax software:

1) Maximizing your refund

While tax software can typically do a pretty good job with straight, simple returns, when it comes to your tax and financial picture, things can get complicated very quickly. For small business owners, you do not want to get this wrong. A mistake can not only negatively impact you personally, but also the future of your business. Simply relying on a questionnaire to ensure an accurate return can be compared to answering a questionnaire online to diagnose your health as opposed to visiting a doctor. Sure it is possible to get it right, but there is simply no substitute for hiring a professional who can learn and fully understand your financial picture who will know the right questions to ask to get you to your maximum refund and ensure an accurate return. 

2) Savings on future taxes

You may think you are saving money by using TurboTax. TurboTax can help you file for less than you’d pay a good CPA. However, when considering the expert advice from someone who knows the tax law on how to not only save on this year’s taxes, but putting together a strategy for future years as well. You’ll really see a CPA pay for him or herself when you look at it in terms of long-term tax savings.

3) Putting together a plan

Through good tax planning, you can better understand how your taxes fit within your overall financial picture. This will help with financial planning for your business and individual goals.

4) More accuracy and less worrying about an audit

The more complex your tax situation, the higher the likelihood of submitting an inaccurate return. Did you know the IRS can audit your return for up to 6 years? If the IRS comes knocking, you’ll want to have the peace of mind knowing that your tax return is accurate.

In a new year, with new tax laws taking effect this year, it is more important than ever to have your local CPA who is on top of all the new tax laws, prepare your taxes and consult with you regarding your future tax picture.