Why hire an accountant over using software for your tax returns
18th December 2014
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Tax software

Many people use software as it is cheaper than hiring an accountant, especially as some software offers a free trial period. If the tax return is simple then this may be a good way forward for some as it can provide limited advice and help and is also useful for those who have plenty of finance experience and understand tax and finances. Some pieces of software can now be operated via Cloud so users no longer have to download special software onto their computer.

Using software has limitations, however, as it is unable to provide human contact and advice, nor is it able to find additional savings or tax credits that could be applied to your tax return, thus saving you money. You also have to be wary of cheap online tax software as it could, in reality, be doing little that you could be doing yourself. A good piece of software will help check over the return for basic errors but cheaper software may not even provide this basic service. 

Accountant

While many will balk at the thought of the extra expense of hiring an accountant, doing so can actually save you more than you spend! An accountant will know all the areas for tax deduction that you may not know of that will save you money as well as saving you considerable time in putting your return together. If your taxes are complicated then an accountant will be able to help sort them out and make sure they are all filed correctly which will help save you money in the long run and help prevent audits or fines.

If you do decide to hire an accountant then research is key. While many are trustworthy and reliable, anyone can create a website and claim to be a professional accountant. When searching for an accountant, make sure you ask what their qualifications are and check them out before handing any of your sensitive financial data over to them! Using places such as The Institute of Chartered Accountants for referrals to local accountants who are accredited to them is a good start as the accountants affiliated to them are more likely to be trust worthy and credible. It’s also a good idea to have an accountant local to you as it will make going to seeing them easier to fit into your schedule.

If you’re thinking of using an accountant for this year’s tax return then why not contact Phipps Henson McAlister Chartered Accountants and see how they can help you.

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