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Posted: 2006-04-20 / Author: Gray Rollins
Preparing Your Small Business TaxesWhen tax season rolls around each year the are a number of
individuals who need to decide how their tax returns will be
prepared and filed. Each taxpayer has a number of tax
preparation options. These tax preparation options can include
self preparation or hiring the services of a tax professional.
Individuals who makes the decision to hire the help of a tax
professional are likely to hire an accountant or professional
tax preparer. The majority of professional tax preparers are
employed by a large company that specializes in tax
preparation. Taxpayers are often required to take the necessary
documents to a tax preparation office.
Taxpayers also have the option of hiring an accountant to
prepare and file their taxes. Many individuals who have
complicated financial records are likely to hire the services
of an accountant because accountants are not only trained in
tax preparation, but bookkeeping as well. When choosing a tax
accountant to do business with taxpayers are encouraged to ask
an accountant about their qualifications or relevant business
experience. There are two main types of accountants. One is a
person that may just have previous accounting experience and
then there are certified public accountants (CPAs). Certified
public accountants (CPAs) are required to take a set number of
college credits and pass a CPA exam before becoming certified.
Certified public accountants are likely to charge their clients
more money; however, they tend to offer better results due to
their large amounts of training and experience.
The only downside to hiring a professional tax preparer or an
accountant to do your taxes is that they are likely to cost a
large amount of money. The majority of accountants and other
professional tax preparers charge their clients based on the
number of government forms that need to be filled out
and how complicated they all are. It is not uncommon for an
individual to pay over one thousand Rand to have their taxes
professionally prepared. For this reason there are many
individuals who decide to prepare their own taxes.
When an individual decides to prepare their own taxes they have
a number of different tax preparation options. Until recently
the majority of taxpayers who prepared their own taxes relied
on paper tax forms to file their taxes. Paper forms are not as
popular as they used to be; however, there are still many
individuals who use them. The majority of taxpayers have
federal and state tax return forms mailed to their residence.
This is a convenient option that is given to all previous
taxpayers. Other taxpayers can obtain government tax
forms and their instruction booklets by visiting their local
library, post office, or bank.
The reason why paper forms are not as popular as they used to
be is because of the development of tax software programs. Tax
software programs are available for purchase online or in most
retail stores. They are designed to allow individuals to
prepare and file their taxes accurately and quickly. There are
many tax software programs that transfer a taxpayers
information from one form to the next. All tax software
programs have a mathematical checker that prevents a number of
errors from being reported on a tax return. Tax preparation
software programs often come in a standard, deluxe, or premium
version. The deluxe and premium versions are likely to include
both federal and state tax return forms while the majority of
standard versions only include federal tax return forms.
Once a taxpayers make the decision to have their taxes
professional prepared or self prepared there are still more
decisions that need to be made. Individuals are encouraged to
examine their situation and decide whether they should hire an
accountant, take their takes to a tax preparation office, file
paper tax returns, or use a tax preparation software program.
Each taxpayer is likely to make a different selection based on
different circumstances. What are yours?
About The Author: Gray Rollins is a featured writer for the Tax
Help Directory. To learn more about tax preparation options,
visit http://www.taxhelpdirectory.com/taxpreparation
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