It’s often assumed that having an accountant is something reserved for the old or wealthy.
From a consumer standpoint, this rationale makes sense…after all, why would an accountant bother with a simple 1099 and Roth IRA when software like TurboTax is ready and easy to use?
Believe it or not, a lot of accountants actually welcome all incomes and filings. While some are going to give you a more honest deal than others, the best firms are the ones looking to empower individuals. As a big goal of Holloway and Associates, we decided to break down why young people might want to use an accountant over an online filing service.
Your Time Will Be Valued Much More
Most self-guided tax software is designed to get as much money out of you as possible.
As their goal is to maximize profits, that doesn’t necessarily mean they’re trying to maximize your return, but rather ensure that you pay them for the most ‘services’ possible, regardless if it helps reduce your tax liability. On the surface, it may seem convenient to just click through some buttons and input a few fields, however, it can honestly cost you more time than it’s worth when considering how to get the most out of your return. Plus, an accountant will treat you like a real person.
With an accountant, you’ll have a face and name to approach with your entire tax scenario. Depending on the rate you work out with them, the value you’re getting will be maximized by the accountant, as they want to help come up with the best solution to ensure they can keep you as a client for years to come. Individual accountants rely on keeping clientele much more than the likes of big tax software, which is why even if you have just a basic 1099, the accountant will value what can be done around that to help with retirement, student loans, charitable contributions, etc.
You’ll Have The Opportunity To Explore More Than One Avenue To Maximize Your Return
Accounting has a lot of roads you can go down that lead to different answers from the same numbers. For example, itemizing deductions versus taking the standard deduction, or using the standard mileage rate versus actual vehicle expense are common scenarios everyday people face on their taxes annually. As the IRS has a bunch of different ways you can maximize your return, an accountant can listen to your whole picture, then suggest a few different routes to go…including when factoring in future considerations.
Most self-guided tax software is designed to get as much money out of you as possible.
There’s Someone To Ask The ‘What-Ifs’ Of Your Future Tax Decisions
While taxes aren’t necessarily a form of credit, they can influence spending power for some individuals and businesses. This impacts the future decisions and ‘what-ifs’ of your tax scenario, which most software can’t do. Furthermore, a lot of accountants play a role that’s more than just running numbers, but suggesting and advising on different routes for business decisions from a tax perspective. As taxes are inevitable, having someone there to help explain what you can and can’t do with them will help in developing your thinking around reducing liability.
You Have A Sense Of Protection From Bad Actors
Tax help can be a predatory practice. Especially for those that owe back taxes, scammers and fraudulent actors will try to contact you with threats that the IRS will arrest you, or even try to rope you into a ‘tax forgiveness’ program that may or may not be legitimate. Even the businesses that are honest tax settlement places aren’t necessarily giving you that great of a deal, with many of them knowing they can charge you $3,000 for a $10,000 obligation that they might end up settling for much less than what you paid.
Although these are ‘real people’, they often target people who don’t have a clue about taxes and simply file online without second-guessing. When you factor in that most seasoned accountants can not only help with things like settlements, they’ll do it for a price that’s much better encompassing your returns and questions than anywhere else. As most accountants have no reason to try and scrape something off the top of your settlement amount, it’s much more advantageous for them to just help you with your tax situation for the long-haul than trying to come up with a solution right now.
You’ll Save Much More Money In The Long-Run
For as long as they’ve existed, taxes have been a headache. No matter how we try to dice it or stay ahead, there’s someone on the other side lobbying to change things for their benefit, which could ultimately affect you. Considering you’re most likely going to graduate from simply just filing your income taxes and into things like insurance, retirement, investments, etc, having a real advisor there will save you a ton of time trying to catch up and read about what’s to come next.
Finally, regardless of income, if having an accountant is something you think would help, don’t hesitate to reach out at the email below. We help people from all walks of life understand their finances a little better, and can work within most budgets as well.
Want an accountant that supports your mission?
Your financial wellbeing is only part of the equation. Stand firm knowing your accountants back your organizations values, goals, and team, too.