Pros and Cons of DIY Taxes

DIY Taxes

Tax season has come and gone. Now is a good time to reflect on how you did your taxes this year, and to consider doing things differently. Did you try to do it yourself, or did you seek outside help?

At Hacker Accounting, we know all about the pros and cons of DIY taxes. If you’re thinking of doing your own taxes next year, consider these points in order to make a decision that’s right for you and your business.

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Save Money

First of all the most obvious benefit to doing your own DIY taxes next year is that you’ll save money. Let’s be honest: Hiring a professional to do your taxes IS an expense. Whether or not you consider that to be a worthwhile expense for your business is  up to you. Doing your own taxes cuts out the middleman, saving you some bucks.

Learning Experience

Additionally nothing will teach you more about your business and give you a better understanding of your financial situation than doing your own taxes. Doing your own taxes gives you an in-depth insight into your spending habits, into your losses, into your profits, and into every aspect of your business. It can reveal to you weaknesses that you need to correct. Perhaps you have poor documentation and need to work on maintaining better records? Or maybe you’ll notice that you’ve devoted far too many of your resources towards a part of your business that doesn’t deserve it. If you do your own taxes, you will understand your relationship with money in a way that no other activity or process can show you.


Small Mistakes, Big Fines

Not hiring a professional to do your taxes can save you money in the short run, but could cost you big down the road. There is no such thing as a “little mistake” in taxes. The slightest error could cost you BIG money. An accountant knows how to do taxes accurately and completely. They understand what needs to be done. Whatever money you spend hiring a professional to do your taxes will be more than worth it when you consider just how expensive a tax fine, lien, or audit can be (and these are all things that you put yourself at risk for when you DIY taxes).

Hard To Understand

We’re not gonna lie: Taxes are hard! Taxes can be extremely confusing and difficult to sort through. Depending on the size and complexity of your business, your taxes could be very difficult to navigate on your own. A professional accountant has thoroughly studied and internalized tax law; They also keep up to date with all the changes in the tax world. Taxes can change on a yearly basis, and if you aren’t aware or up to date on those changes it could cost you big-time if you try to file them on your own.

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In conclusion let the financial experts at Hacker Accounting give you the help you need to succeed in business and in life. Give us a call at 602-375-5251.