Tax accounting generally costs less than $100 for simple tax returns, and it takes only a few hours to prepare and complete a tax return. Certified public accountants generally charge at least twice that amount, since CPAs have the necessary skills to tackle the core of problematic business and investment issues. However, the cost of tax accounting differs if parts of the tax filings are under special cases and take longer for the accountant to complete the tax returns. In these circumstances, accountants charge more due to consultation fees and overtime work.
Although doing taxes independently using tax software saves money over hiring an accountant, the costs of hiring an accountant is also beneficial to the individual. Accountants prepare tax returns with much more sophisticated software, compared to software sold to consumers. These programs have high data rates that scan financial information quickly and organize data accurately. The computerized organization in the software will decrease unnecessary errors in tax returns.
The cost of tax accounting also includes numerous services, including accounting, record-keeping, tax consultation and auditing. Accountants provide assistance in building up an effective accounting system to accurately and conveniently assess profitability, monitor prices and expenses, control budgets and forecast future speculation trends. Accountants can also consult their clients with tax-related problems, such as tax compliance and regulations and methods of tax reduction. Moreover, accountants can come up with accurate audit reports, financial statements and other accounting documentation required by government regulation and lending institutions.
Overall, hiring an accountant also means the start of a relationship with a financial consultant. The accountant will understand your family or business's financial records and goals, and he or she can give valuable and personal tax reduction suggestions and answers to critical questions at any time of the year.