The line of horror movies stacked up for release this year a little ahead of the tax season is highly symbolic of what is to come. Once again, we stand on the brink of another tax season, quite aware of what awaits us. The thought of a myriad of paperwork built around umpteen hours of strenuous study and scrutiny is capable of sending shivers down one’s spine. Redundant obsequious squealing from the coffee machines would be fairly common hearing pre-tax season. Like most other things in life, taxes are hardly black and white but hidden in the greys and can be extremely complicated and challenging. With the tax season around the corner, it’s common knowledge that it is never too early to start preparing for the upcoming tax return. Doing this in advance will not only save you money but more importantly, time.
With a list of options available to help tide over the complexities that unfold while doing the taxes, a highly recommended suggestion would be hiring a professional to take over the tax preparation service. However, you might be tempted to file your taxes by yourself so as to save a little bit of money. Spoiler Alert! Chances are you’ll be losing more money than you’d be saving. By the time you realize you are losing out more money than you saved by filing on your own it would be a little too late. Here are some of the benefits that come with a professional tax preparer:
1. Time Saving
It is a common understanding that time equals money. Likewise, your time is also valuable and should be used scrupulously. In an attempt to save some money, one might end up spending more than twice the optimal amount of time preparing for taxes. Many people end up stuck in front of their computer for hours when they are filing their own taxes. Self-filing programs can cause issues for people who are not tech-savvy, and you end up wasting more time than if you just hired a professional to file for you.
2. Avoidance of adverse consequences
As you sign the end of your tax return, you declare that the information is true and accurate to the best of your knowledge. If the IRS audits your return and finds errors, you could face potentially serious legal consequences. Having a professional prepare your tax return adds a little safeguard to potential liability. You need to be cautious, however. As stated, a tax professional can make a mistake. Go over the return yourself to ensure that all the numbers are correct and accurate.
3. Saving Money
There is an endless list of circumstances and technicalities that can literally make the tax season excruciating for the majority of taxpayers. Infused with a significant number of clauses, conditions and preferences, it generally would take an educated professional capable of assessing the individual’s financial situation and tax status in order to save money by finding applicable deductions. The irony is that more often than not, people who hire tax preparers end up saving more money on deductions than they pay for the preparer’s services, not to mention the stress and strain they avoid by doing so.
4. Reduction in Errors
The IRS holds a list of the most common tax errors. On that list are computation errors when determining taxable income, entering payments on the wrong line and simple math errors. An error on your return can delay any refund due. If you err and the mistake results in tax liability, interest and fines accrue from the date you filed the taxes. While no tax professional is perfect, the chances of making a simple mistake on a return are reduced when you use a professional tax service.
5. Liberation from Stress of the highest order
The feeling of having an expert, whose professional life is dedicated to taxes, and that you’re not left alone with the pile of forms and numbers is quite relieving. Hiring a tax preparer makes the process easier, less stressful and time-consuming, which is something a lot of people are ready to pay for.
As for those who are looking for a middle ground between paying high rates for a professional tax preparer and going head on with the onerous paperwork themselves, there’s always the option of outsourcing. Though outsourcing rates are relatively cheaper they come with the certified benchmark for quality and compliance.
We at Velan Bookkeeping are a well acclaimed and renowned bookkeeping firm that fix accounting related issues with the required sensitivity and sensibility that the work demands. Our distinctive, trustworthy and effective methods have helped many companies overcome issues that would have certainly staggered their progress. Having been shaped and moulded with over a decade of experience in this arena, we cater to a web of services like:
- Bank Reconciliation
- Statement of Assets and Liabilities
- Accounts Receivable and Payable
- P&L Statements
- Payroll Tax Preparation
- Sales Tax Preparation
Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in house accountant’s salary exclusive of his paid vacations, incentives and bonuses. With accolades and testimonials such as those bestowed upon us, one needn’t think twice before picking up the phone to outsource their bookkeeping and accounting services with us.