Should You Use A Software Program or A Tax Preparer?

There is one thing we all agree on: Nobody wants to make a mistake on their tax return. Filing taxes can be a stressful time, especially if you don't know whether to use tax software or hire a professional tax preparer.  Albert Einstein understood this problem perfectly, he said: "The hardest thing in the world to understand is income tax."  So don't worry if you haven't figured out the best way to file your taxes yet. This post will help you decide if you should buy tax software or hire a tax preparer that offers tax services Calgary. You can compare the differences between the two and decide what is best for you.

What is tax software?

If you like to do things yourself, tax software is for you. It is a computer program designed to help you prepare and file income, corporate, and other returns.  As you enter your financial data on the platform, the tax software automatically updates the forms and offers you advice. In addition, it will notify you of deductions for which you may qualify and calculate your tax liability if any. The task of preparing taxes is one of the most complex and to which you would spend the most time. Therefore, you should first prepare the necessary documentation that you will need to input into the software or give to your tax preparer.

How to choose a tax preparer

If you think a tax preparer is the best option, here are some tips to help you find the best one:

1, Find out how often they are available

If tax preparers only offer their services during tax season, you won't be able to contact them if you have a tax problem during the year.

2. Check their credentials

Check an individual's qualifications on the IRS federal tax return preparer’s site. You can browse the directory by zip code to find people who work near you. In addition, it is a good idea to get recommendations from other business owners or coworkers who are satisfied with their tax preparers.

3. Request information on prices

A candidate should be able to give you a detailed list of what they charge for each service offered. Once you gather the cost from at least three different tax preparers, you would then make an informed determination.

Review the preparer's history

If there have been complaints, most people file them with the Better Business Bureau. You can check the status of the preparer's license and whether disciplinary action has been taken.

Sharing confidential information

You should decide if you are comfortable sharing confidential information with a stranger. Because tax preparers review confidential financial information, you should choose someone you can trust.

Conclusion

Armed with this information, it is now time to determine which option you would rather choose. It will depend on your familiarity and confidence in preparing taxes on your own. However, remember that you may not be aware of the changing tax laws, but a tax preparer does.

How To Make Tax Season Easier on Your Business

Tax season is a phrase that can cause shivers down many small business owners' spines. It may be a time that you dread every single year, but it does not have to be anymore. While there is a certain level of stress that everyone feels about taxes, you can make the process as easy yourself as possible. The main component is keeping accurate records so that you will not have to hunt down everything at one time. When trying to make your business more efficient at handling taxes, consider the following tips: Have deduction records for all employees, have the right software, and keep accurate pay period records. 

Have Deduction Records for All Employees

Every employee should fill out a W-4 form before he or she receives the first paycheck. This employee's withholding certificate lets you know how much tax to hold out of each paycheck. The amount of tax will depend on the employee's filing status and a number of dependents. You should have all of these forms on file where they can be easily accessed at any time. This can help clear up any confusion about withholdings when tax time comes.

Have the Right Software

When you have the right tax software, everything can become so much easier to manage. Consider looking into a Quickbooks solution provider. These systems will help you keep your records more organized so that you will not have such a long paper trail when trying to get your taxes in order. There are numerous tutorials on how to use tax software correctly, and reviewing these can help you use yours most effectively.

Keep Accurate Pay Period Records

You should keep records of how much you paid each employee and how much you withheld for every single pay period. This will make it easier for you to calculate everything at the end of the year instead of having to guess how much you paid in wages. When you keep organized records, you make your life a lot easier. You can have a list or spreadsheet for each employee that lists this information, and you can input it on every payday.

While tax season may always be somewhat stressful for you, you can make it less so by following these easy tips. For those struggling with keeping records organized, start researching tax preparation solutions today. It could change the entire way you operate the financial aspect of your business.