You may wonder, “Why do I need a tax professional when I can buy tax prep software?” If you listen to the ads, tax prep software can do everything, including preparing dinner! The reality is that all tax prep software has errors. And it’s no surprise with all the late-changing laws that are not always logical by a computer’s standard. You need help. Here’s why.

Why do I need a tax professional?

Tax software producers claim their products can prepare complex returns, but you may want to think twice before relying on software for all your tax and financial guidance. Although software may help you make choices on your tax return that result in the lowest tax this year, you should consider the long-term effect of your options to pay the lowest tax over several years.

With a professional tax preparer, you get more than just a tax return. An established relationship with a tax professional familiar with your finances, family, and goals can prove invaluable.

If you prepare your own returns, it’s a good idea to let a professional preparer review them at least every three years. That’s because you only have three years to amend a return to change any items of income, deductions, or credits reported in error or omitted on your original return.

The strength of an accounting professional

Having a good accountant can do more than prepare your tax return. They can assist you with:

• Accounting and recordkeeping
• Income tax planning
• Business planning and problem solving
• Computer selection and use
• Estate tax planning
• Bank loan assistance
• Your other tax, business, and financial concerns

An accountant can provide you with year-round planning for your tax, financial, and business affairs. Such planning is essential if you want to realize your financial goals. Every great team needs a great accountant. If you have questions about your situation or are ready to file, please contact our RRBB advisors.