It’s often assumed that having an accountant is something reserved for the old or wealthy.
From a consumer standpoint, this rationale makes sense…after all, why would an accountant bother with a simple 1099 and Roth IRA when software like TurboTax is ready and easy to use?
Believe it or not, a lot of accountants actually welcome all incomes and filings. While some are going to give you a more honest deal than others, the best firms are the ones looking to empower individuals. As a big goal of Holloway and Associates, we decided to break down why young people might want to use an accountant over an online filing service.
Most self-guided tax software is designed to get as much money out of you as possible.
As their goal is to maximize profits, that doesn’t necessarily mean they’re trying to maximize your return, but rather ensure that you pay them for the most ‘services’ possible, regardless if it helps reduce your tax liability. On the surface, it may seem convenient to just click through some buttons and input a few fields, however, it can honestly cost you more time than it’s worth when considering how to get the most out of your return. Plus, an accountant will treat you like a real person.
With an accountant, you’ll have a face and name to approach with your entire tax scenario. Depending on the rate you work out with them, the value you’re getting will be maximized by the accountant, as they want to help come up with the best solution to ensure they can keep you as a client for years to come. Individual accountants rely on keeping clientele much more than the likes of big tax software, which is why even if you have just a basic 1099, the accountant will value what can be done around that to help with retirement, student loans, charitable contributions, etc.
Accounting has a lot of roads you can go down that lead to different answers from the same numbers. For example, itemizing deductions versus taking the standard deduction, or using the standard mileage rate versus actual vehicle expense are common scenarios everyday people face on their taxes annually. As the IRS has a bunch of different ways you can maximize your return, an accountant can listen to your whole picture, then suggest a few different routes to go…including when factoring in future considerations.