Disadvantages of Using Turbo Tax for Your Small Business
If you’re trying to do all your taxes on your own, chances are that you’ve heard of TurboTax. This tax preparation software is used to electronically file your tax returns once you complete them.
While this is one way to file your taxes every year, working with a Certified Public Accountant (CPA) is another option. In this blog post, we discuss the disadvantages of using the former option and why it’s best to work with certified professionals, aka Core Group.
Disadvantages of Using Turbo Tax
(There are plenty - but you can decide if it’s worth the headache)
1. You Need to Find the Time to Do Taxes
When using TurboTax on your computer, you will need to commit more time to the actual process. You must first learn and understand current tax laws, prepare schedules, and ensure that your financial documents are ready.
You’ll also need to prepare details on interest earnings, any dividends you may have earned, and amounts you may have paid for mortgage interest or property taxes. But if you use a CPA at Core Group, all you need to do is hand your financial records over, be ready to communicate and the job gets done.
2. Turbo Tax Can’t Fix Wrong Answers
If you accidentally place your income in the wrong area, then TurboTax will process the information you placed into the designated boxes. While the software will ask a lot of questions to help you avoid mistakes, it won’t always catch each and every mistake that can happen.
This means that you’ll need to file an amended return should you catch an error that could result in losing your refund.
3. You’re Responsible for the Quality of Return
Even if you’re using TurboTax, you’ll be taking full responsibility for ensuring that the information you provide is accurate, once you file taxes on your own. For this reason, many advisors will tell you to file your taxes early, which will give you a chance to check for expenses or income that you might have missed. This is a CORE strategy. We fully expect errors. The goal is to plan so you’re not surprised.
Taking the time to review your return after you’ve completed your taxes will make it easier for you to find any errors in the numbers and the potential to gain profitably in the future
4. Audit Protections Cost More with Turbo Tax
While you can get audit defense added with your Turbo tax process, it will come at an extra cost. When you hire a CPA, you’re getting free audit protection to a certain degree.
You’ll still be able to get your financial documents reviewed through the IRS, but this will be done through your CPA since they’re the ones who prepared and filed the return for you. Don’t worry, CORE has the CPA we also have EAs (Enrolled Agents on behalf of the IRS)
5. Online Help Feature Isn’t Always Helpful
Any kind of tax preparation software aims to make the filing process as smooth and simple as possible, and if your tax situation is straightforward and easy, then you’ll enjoy the benefits that TurboTax offers. However, if your case is complex, you might find that the help function for TurboTax won’t be helpful.
For example, premium payments for health insurance are deductible for some people, but not everyone. Unfortunately, making a deduction when you’re not supposed to may result in an audit, interest charges, or penalties.
Conclusion
Depending on how complex your returns are, it can take you anywhere between four to five hours to complete a tax form and then file it — time that not everyone has. If you don’t have the time, Core Group is made up of accounting professionals who can help you create high-quality returns at an affordable price.
This tax season, let us help you with all your financial needs, where our knowledgeable and experienced team can help you get control of your taxes. To get started, give CORE GROUP a call today at (866) 579-7104 or visit our website for more information. Let’s continue to #growprofitably