Tax preparation is time consuming and tedious process. There is lot of documentation associated with filing of tax returns and there are important calculations too. The expertise in tax filing may be required only when there are complex accounting elements involved else tax filing is more of the routine accounting process. This tedious task has been made easier and convenient by the experts who have introduced online income tax software. There are many free online filing software too which can be used to have the feel of the technology without investing into it. If you have multiple sources of income or you are a business owner then this online software would not be sufficient. You will need tax preparer or in some cases, CPA!
The word CPA stands for Certified Public Accountant is used for the IRS licensed professionals. CPA’s are very much different from the tax prepare as they have the license to represent the client company at the time of audit. They don’t just prepare the tax statements or file the returns but they would also guide the company about the investments and tax planning so that the company has the minimum tax liability. CPA’s are experts and may be hired by the individuals and companies that require guidance for their tax planning to reduce the tax amount to optimum. The individuals having only one source of income and no major complications in account may opt for tax prepare or taxation software as CPA would turn out to be expensive choice.
CPA’s are experts of accounting and taxation but still they may require manual or technological help to reduce the burden of routine task. This burden has been reduced by the software for CPA.
Lot of hard work and expertise is required to get the license from IRS to serve as CPA. The knowledge acquired through lot of dedication and hard work cannot be wasted for the routine tax preparation and the repetitive jobs. CPA’s would require time to form the strategies for accounting and tax planning so that their clients can save on tax and their accounts are clear. They also represent their clients for audits. Hence, for other tasks that are include only simple calculations, CPA’s may use tax calculation software.
The tax payable and TDS would be calculated with the calculation software and that too with utmost accuracy. CPA can take these figure for further analyzing and planning of advance taxes. This will give more time to CPA’s and hence would also work for the benefit of their clients.
Other routine tasks that can be ensured to the software include preparing tax documents and other financial documents. This software would also file returns online.
Thus, using the software would bring down the burden of routine tasks and would allow CPA’s to apply their expertise to the deserving issues.