You’ll also have peace of mind knowing that you won’t have issues with the IRS. In addition, if your business earns $73,000 and below, you’ll be qualified to file your taxes for free. Besides savings costs, another benefit of doing your own taxes is that you will have a better understanding of tax laws and how they can affect your bottom line.
Some people may never need anything more than quality tax-prep software or another type of tax preparer to complete their annual returns. This could be especially true if your tax situation is pretty simple or you feel reasonably confident about your taxes. One of the benefits of using the same CPA year after year is that you can generally expect to pay the same amount every time they do your taxes.
IRS Online Account enhancements
Of course, the number of hours billed by a CPA depends on the service, and is impacted by the level of organization of your files. A recent study by the National Society of Accountants found the average cost of hiring a certified public accountant (CPA) to prepare and submit a Form 1040. That same year, state returns with no itemized deductions would cost $220, while the average how much does a cpa cost fee for an itemized Form 1040 and a state tax return is $323. You can find a CPA, or certified public accountant, to specifically handle your business taxes and let them take care of the stress for you. You’ll want to take the time to see what your options are and make sure you find an accountant who is licensed to work in your state of incorporation or business operation.
A compilation is the most basic level of assurance because the CPA mainly does a cursory check of the company’s financial statements to ensure there aren’t any obvious issues. Think of the cost of tax prep like the cost of getting your car washed. You can get a quick, basic car wash (minus the wax and all the other add-ons) pretty cheap. Sure, your car might not sparkle like new, but for $5, it gets the job done.