Knowing Which Tax Filing Method is Best Suitable in Your Situation: Tax Software or Tax Pro

In the present times, there are a lot of ways of making our lives easier and faster. If you are a freelancer, or you have one job, then probably you have been hiring an accountant, enrolled agent or a paid preparer such as Tucson personal tax preparer for them to process your tax return. Some preferred a tax preparer since tax law is constantly changing and not all can stay updated to the current and latest laws. Tucson personal tax preparers are knowledgeable enough to file for your personal taxes easier as well as getting the most out of your tax return. However, this is not always the case. Maybe you know someone who preferred using a tax software or an online app where in some cases, you can even combine these two and change from your desktop to a mobile. It also has its benefits such as accessibility and less costly. The question is, which method is preferable to use? hiring a tax pro or using a tax software?

Tax Software is Not as Reliable as You Think it is 

“A common misconception or incorrect assumption is that tax software will automatically prepare a correct tax return, but that’s only if the preparer understands their tax documents and their tax status. Tax software is great, as long as you enter the right info. However, it’s relying on you to be the tax expert.”

– Randall Brody, enrolled agent (IRS expert)

Most people think that it will be way efficient and less costly to just use a tax software because they see it as a safe-way to file their taxes. But Randall brought out a good point that you still need to be a professional preparer because you will be the one filling up the required details in order to come up with an accurate tax return.

So does that make hiring a tax pro as the best option? the truth is, the preparation method depends on your situation. Below are some factors to consider in deciding which one to choose:

  • Fresh Graduate Students – they are just starting to explore which career path to take. Hence, there is no need yet for a tax pro.
  • Freelancers having Steady Income– a professional tax preparer is best for this group of taxpayer since they are already like those employees with regular salaries. However, if the freelancing is more of a side job, tax software will work fine.
  • Business owners- if you are an owner of a business, then it is better to hire a professional because the tax return is more complicated.

As you can see, there is no right or wrong way of filing taxes. It depends on you which method will best suit in your situation. Hence, lot of thinking and assessment must be done prior to hiring a tax pro or using a tax software.

Financial Management 101: Guides and Tips

Basic Principles of Financial Management

Almost everyone wish that they can use their money in any ways without limitations and worries. Well, the truth is, anyone can do this, but they must accept the fact that eventually they will run out of money and will be full of debts. In order to avoid this, there are simple things you can do starting today to improve your money situation.

No matter how much money you are earning, it is important to organize your finances because it is the first step to creating wealth. Cash loans such as same day loans, which is really of great help, payday loans, and installment loans must be carefully tracked. In addition, there are free open budgeting software helps in tracking all accounts.

To successfully manage your personal finances, you may want to try these helpful steps:

  1. Simplify your Financial Goals- Some may find this unnecessary. but one must really take some time to come up with a specific, long term financial goals. What and where you are planning to invest depends on your overall goal. Say, for example, your goal is to retire early, then you will save more money compared to how people usually save. If your goal is to travel the world, then you will not be able ton retire at an earlier age.
  2. Detailed Financial Plan- In order to successfully achieve your goal, you must have a detailed financial plan. It must have multiple steps that includes creating a budget and how much should you be spending for one month, even paying off your debt. When creating a plan, budgeting is the most important as well as securing an emergency fund.
  3. Stick to a Budget and Avoid Unnecessary Expenses- your budget is the most powerful tool when it comes to financial management. You must be empowered enough to follow your spending plan. It is up to you if you want to make as high level or detailed as long as it will of great help in achieving your financial goal.
  4. Pay Off Borrowed Money- Unfortunately, in most cases, debt is inevitable and is a huge hindrance to achieving one’s goals. Hence, your detailed plan must focus on avoiding debts.
  5. Be Open Minded- If you successfully followed your plan, you must start on deciding where to invest in order to increase your wealth. Seeking for some advice from a financial planner will help you make smart investment decisions.