What are the benefits of using a CPA for tax preparation?


Quick Answer

The benefits of using a certified public accountant, or CPA, for tax preparation include accuracy, ability to handle tax-related questions at any time and time saving, according to Investopedia. A CPA can also offer professional advice on tax savings, including how to minimize capital gains taxes.

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Full Answer

CPAs possess relatively expensive and sophisticated software that allows them to scan information fast and accurately, as Investopedia explains. The software also allows for automatic entry of data. Consequently, this software enables CPAs to produce error-free work, leading to more accurate tax returns. Accountants are also beneficial because they can provide answers to questions that emerge at any time of the year and not just at the annual consultation. Additionally, when taxpayers are faced with complex business or investment-related issues that are time consuming, they can deal with the issues by seeking the services of accountants who are well-versed with such issues to save time and avoid stress.

Taxpayers make decisions about how they prepare their taxes based on how complex their finances are, as Investopedia reports. Knowledge about the rules put down by the Internal Revenue Service also plays an important role when deciding whether to use tax software or hire an accountant.

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