A:

Tax accounting generally costs less than $100 for simple tax returns, and it takes only a few hours to prepare and complete a tax return. Certified public accountants generally charge at least twice that amount, since CPAs have the necessary skills to tackle the core of problematic business and investment issues. However, the cost of tax accounting differs if parts of the tax filings are under special cases and take longer for the accountant to complete the tax returns. In these circumstances, accountants charge more due to consultation fees and overtime work.

Although doing taxes independently using tax software saves money over hiring an accountant, the costs of hiring an accountant is also beneficial to the individual. Accountants prepare tax returns with much more sophisticated software, compared to software sold to consumers. These programs have high data rates that scan financial information quickly and organize data accurately. The computerized organization in the software will decrease unnecessary errors in tax returns.

The cost of tax accounting also includes numerous services, including accounting, record-keeping, tax consultation and auditing. Accountants provide assistance in building up an effective accounting system to accurately and conveniently assess profitability, monitor prices and expenses, control budgets and forecast future speculation trends. Accountants can also consult their clients with tax-related problems, such as tax compliance and regulations and methods of tax reduction. Moreover, accountants can come up with accurate audit reports, financial statements and other accounting documentation required by government regulation and lending institutions.

Overall, hiring an accountant also means the start of a relationship with a financial consultant. The accountant will understand your family or business's financial records and goals, and he or she can give valuable and personal tax reduction suggestions and answers to critical questions at any time of the year.

RELATED FAQS
  1. What is cost accounting?

    Learn about the main benefits of cost accounting systems, how they are different from financial accounting and why they are ... Read Answer >>
  2. What are the objectives of financial accounting?

    Learn about the principle objectives of financial accounting, including the furnishing of the financial statements for those ... Read Answer >>
  3. Do financial advisors prepare tax returns for clients?

    Find out how financial advisors are often involved in tax planning and tax return preparation for their clients as well as ... Read Answer >>
Related Articles
  1. Personal Finance

    Accountant: Job Description & Average Salary

    Discover what the job description of an accountant entails, along with education and training, salary and skills necessary for success.
  2. Insights

    A Look At Accounting Careers

    More than just crunching numbers, this career blends detective work with trouble shooting.
  3. Taxes

    How To Get The Most Out Of Hiring An Accountant

    When you hire an accountant, getting good tax advice going forward is as valuable as – or perhaps even more valuable than - getting the previous year’s taxes filed correctly. Learn what you need ...
  4. Taxes

    Does Online Tax Software Really Save You Money?

    Both online tax software and tax professionals have their own set of advantages, but which one is actually better for your bottom line?
  5. Taxes

    Don't Stress This Tax Season, Prepare Instead

    Follow these strategies to help reduce tax-deadline stress for you and your CPA.
  6. Personal Finance

    Career advice: Accountant versus controller

    Learn about the differences between controllers and accountants, how the two are related and which is the best career choice for aspiring bookkeepers.
  7. Taxes

    Minimize Taxes With Asset Location

    Learn how to maximize your investment returns with this tax-minimization strategy.
  8. Taxes

    How To Find The Right Tax Preparer

    Choosing the right tax preparer for your needs is extremely important. However, many are not up to the task, so you need to be careful.
  9. Taxes

    Key Steps In Choosing The Best Tax Preparation Software

    U.S. taxpayers left over $1 billion on the table in missed tax deductions in 2013. Would using tax software prevent you from contributing to this unclaimed cash?
  10. Investing

    What is Accounting?

    Accounting is the recording of financial transactions of a business or organization. It also includes the process of summarizing, analyzing and reporting these transactions in financial statements.
RELATED TERMS
  1. Accounting

    Accounting is the systematic and comprehensive recording of financial ...
  2. Chart of Accounts

    A chart of accounts is a list of each account a company owns, ...
  3. Accountant Responsibility

    The ethical responsibility that an accountant has to those who ...
  4. Net of Tax

    Net of tax is an accounting figure that has been adjusted for ...
  5. Certified Management Accountant (CMA)

    Certified Management Accountant (CMA) is an accounting designation ...
  6. Account Balance

    An account balance is the amount of money in a financial repository, ...
Hot Definitions
  1. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  2. Current Assets

    Current assets is a balance sheet account that represents the value of all assets that can reasonably expected to be converted ...
  3. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
  4. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  5. Cost of Debt

    Cost of debt is the effective rate that a company pays on its current debt as part of its capital structure.
  6. Depreciation

    Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account ...
Trading Center