TurboTax vs. CPA Firms

Originally Posted on February 15, 2011

It’s a question that plagues all of us as Tax time approaches.  Which method is better?  What are some Pros and Cons?  Certainly both have their individual benefits.  Let’s make some considerations on both ends, as we delve into the choice to use one over the other.  Using software has certain benefits that cannot be denied: free, ease of use, working at home.  All of which makes the choice to use the software seem like a good one in certain simple terms. For example, people who have simple returns (one or two W2′s) can use Turbo Tax to do their own returns.  For the layman and those whose tax needs are extremely simple, Turbo Tax would feel like the right choice.  Although, be cautious missing a check box here or there and all your hard work doing it yourself could be more hassle than it is worth. 

If your needs are a bit more complicated, and that is very often the case, the right choice is using a CPA.  Businesses and Professionals will need the benefits of an on-hand professional who can answer their questions and assuage their concerns.  CPAs are well equipped with eligible tax saver credits, a myriad of tax deductions you can use, and many form of tax planning.  Measuring fees and the level of security that comes with the actual aid of an organized trained professional can outweigh the use of free software.  The looming fear of a Tax Audit and the protection of being aided by an actual CPA is a definite Pro in favor of using a CPA as well.

In either case, be prepared and organized.  Preparation beforehand will help alleviate the time spent preparing your Taxes with your prospective CPA.  Arranging the project will reduce the time that they spend on your Taxes and you will save money on fees- all the while, being protected by the aid of a trained knowledgeable professional.