Many people feel that accountants aren’t necessary anymore. We have such easy access to lower cost ways of preparing and filing taxes these days. With user friendly software like Turbo Tax, people don’t want to pay the extra money required by CPA’s. These types of software walk through all aspects of your federal and state income taxes, they can be bought on CD in the store, or even accessed directly online. In the past I often used this software prior when I filed a 1040EZ. Now I itemize my taxes and run a small business online, and believe it or not, Turbo Tax can often be complicated when it comes to this level of detail.
Those with small businesses can actually miss a lot of deductions, or on the other hand, claim deductions that they shouldn’t. While tax software tends to be user friendly, it can often be misleading. This is why I tend to trust the advice of a tax accountant. I am even able to deduct certain utility expenses, and the office space I use in my own home to run my online ventures. The best part is that I can feel safe in case I am audited, and the accountant would be the one interfacing with the IRS, not myself.
The important of having an accountant isn’t just U.S. specific, but can be seen worldwide. Tax law is confusing in all countries, not just ours. Accountants London are known as accounting practioners. In Sri Lanka, accountants are required to be members of the Institute of Chartered Accountants. Other countries like Austria, Portugal, Canada, and New Zealand all have governing bodies that oversee the country’s local tax laws. As the old saw goes, the only two certanties in life are death and taxes. Taxes are the governments form of pulling in revenue and they don’t take it lightly. Make sure you have an accoutant to maximize your deductions, and to minimize your worries!