4 Reasons I Outsource My Taxes to an Accountant
KEY POINTS
- I'm not the type of person to spend money for no good reason.
- Although the fees I pay my accountant aren't cheap, they're worth it.
- If you find taxes stressful or complicated, you might want to get help too.
It's an easy choice for me.
As a writer who covers many topics within the realm of personal finance, I'm not exactly clueless about taxes. I know a lot about claiming credits and deductions, and I'm also familiar with certain recent changes to the tax code because that's the sort of news I keep up with.
I'm also a pretty frugal person -- meaning, I don't spend money lightly. But despite all of that, I've been using an accountant to file my taxes for years. And I don't regret that one bit. Here's why.
1. I find taxes very stressful
Different people have different stressors. For some reason, I tend to get really anxious about filing taxes. Maybe it's because I have a lot of documents and details to dig up as someone who's self-employed. But regardless, I've always gotten stressed out over taxes, even back when I was a salaried employee and the only income I was reporting was my paycheck and some interest from my savings account.
Using an accountant, however, makes the process of filing taxes less stressful for me. So his fees are worth it for that reason alone.
2. My tax situation is somewhat complicated
As a self-employed freelance writer who owns her own business, there are specific tax rules I need to follow and forms I need to fill out. And I don't want to mess up any of that. By using an accountant, I don't have to worry about missing information or filing my taxes incorrectly.
3. My accountant knows more about tax laws than me
During the tax-filing season, I tend to write articles with tips on how to eke out more tax savings and how to avoid common pitfalls. But even though I have some knowledge about taxes, let's face it -- my accountant knows a lot more than I do. And so I'd rather rely on his expertise than my knowledge, even though I may know more about the tax code than the typical worker.
4. My accountant's fees often pay for themselves
My accountant doesn't work for me out of the goodness of his heart. Rather, he charges a fee for his time, as he should.
Now I'll be honest and say that my accountant isn't the least expensive one out there. But I have found that his fees easily pay for themselves. A few years back, my accountant alerted me to a change at the state level that's since saved me thousands of dollars on my taxes. That's something I probably never would have known about had I attempted to do my taxes on my own.
Should you hire an accountant for tax-filing purposes?
Say your tax situation is really straightforward -- you're a salaried employee with few or no other income sources and you commonly claim the standard deduction. In that case, there's probably no reason to spend money on an accountant when you can likely handle your taxes yourself or use a free tax software to handle the process.
But if you're nervous about doing your own taxes, you have deductions to itemize, or you're self-employed or own a business, then hiring an accountant could make a lot of sense. And remember, the amount you spend could more than make up for itself in the form of tax savings.
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