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Many people waste money every year by paying an accountant to do what they can easily do themselves. If you know how to choose a good income tax preparation software, you will be able to easily fire your accountant with no worries.

1. Do you want an online based software, or one that installs on your computer? Both have their pros and cons. An online software doesn’t take up any space on your hard drive and once you have saved your tax return you can go back to it from any computer. I have had to do this multiple times. A lot of the time, you can get an online based software for free if you are just doing the basics.

Some people are worried about safety, and would rather their information be kept only on their computer, this is understandable considering identity theft. It truly depends on what you are most comfortable with.

2. Do you require any ’specialty’ filing? Usually this means anything beyond a 1040. If you don’t know what than means don’t panic. Once you have answered the software’s first several questions you will know what you need to fill out. ‘Specialty’ filing includes self-employed, small business, very large incomes, and some other irregular situations.

Make sure the software you choose supports whatever you need. There are many free online income tax preparation software programs, but you may have to pay extra to file some of these more elaborate forms.

3. Does it support federal and state tax forms? In most states you will be required to fill out an income tax return. Most income tax preparation software programs will do this filing for an extra fee, but make sure to double check. There is nothing worse than filling out your entire federal return only to realize you are going to have to use a different software to fill out an entire state return.

CPA’s vs. accountants or bookkeepers

Most business owners in New York City do not understand the significant differences between CPA’s and other accounting professionals or bookkeepers. Stringent education and licensing requirements are the key differences where credentials and qualifications are concerned. However, the tax benefits of choosing a good Manhattan CPA far outweigh those of the standard accountant or bookkeeper.

Manhattan CPA’s are skilled business advisors and can properly guide you with financial planning strategies, especially where filing your taxes and tax planning is concerned. In addition to assisting you with your business accounting and tax needs, they can also handle your personal needs such as financial, retirement, and tax planning. Therefore, it is imperative that you understand the importance of choosing a CPA for tax purposes as well as your business and personal accounting needs.

Understanding why you should hire a CPA for all your tax needs

Where business and personal taxes are concerned, hiring a Manhattan CPA can benefit you a great deal when you consider that they have far more knowledge about these issues than what most business owners and individuals do. First and foremost, you need to focus on what you need your CPA to handle for you where your business and individual tax needs are concerned. Here are 5 key benefits to consider:

o Hiring a Manhattan CPA for your tax needs can save you time and money in the long run

o You can be assured that your tax information will be more accurate when hiring a CPA

o A good CPA can assist you and your situation by offering more specialized advice and tax tips

o If you are in a position of having to fight an IRS or state audit, file back taxes, or paying off tax debts, a Manhattan CPA is skilled at these aspects and can save you a lot of grief in the long run

o Detailed advice and planning that a CPA provides you with can enable you to pay the smallest amount of taxes possible

Suggestions for hiring the right Manhattan CPA

Finding the right CPA in Manhattan (or a New York City CPA for that matter) can be a daunting task considering how many of them are listed in the phone book and online. It is imperative that you not only find a experienced CPA skilled at tax accounting and preparation, but one that meets your business and personal needs as well. Here are some suggestions for accomplishing that:

o Ask for referrals from other business owners or your local area Chamber of Commerce

o Interview several CPA’s – don’t just settle on the first one you talk to

o Be leary of any CPA who promises you large tax refunds or tells you that everything is deductible – remember that you are responsible for all the information listed on your tax returns – not the accountant

o Ask to see their credentials and get critical information such as their experience in tax matters, how long they have been operating as a CPA, fee schedule, and especially the reasons that you should hire them versus another CPA.