If you are an independent contractor or the owner of a small business, it is important to file an accurate tax return. Even though you still strive to make a profit, you may not want to skimp when it is time to file your tax forms. Today, you have the option to use convenient software enabling you to file forms in a less complicated way than filling out forms by hand. 

Enter into the Modern Era of Tax Preparation Software
If your tax return is fairly simple, you can save money when you prepare your taxes using reliable software. With a computerized tax program, you simply answer questions and the software fills in the forms for you. Although this method may seem as though it is the right option, you need to consider all aspects of your business before jumping to the wrong conclusion.

Make the correct decision based on the following facts:

• Employees work at your company.
• You are a freelancer or independent contractor.
• Your income tax return is fairly simple.
• Your income tax return is extremely complex.
• Your brain has a basic understanding about tax codes.
• You do not know anything about taxes.
• You can afford the extra cost involved if you hire a professional.
• You are looking for the most inexpensive way to calculate your taxes.

Time is a Valuable Commodity
You already know that owning a small business or working for yourself as an independent contractor involves a great deal of time. You have constant deadlines to meet. One important aspect to consider involves whether you have the time to prepare your tax return. Even with the convenience of preparing income tax returns by way of tax preparation software, you still need to take several hours or days to answer all the questions.

Taxes are Correct when Data is Entered without any Errors
If you are like most people, you will want to check over your answers to ensure that there are no errors. Even though you can find software featuring promises to calculate data with precision, the problem is that the software does not necessarily know if you make a mistake. Barring the concept of psychic software with an uncanny ability to read your mind, correct calculations rely on your accurate input.

Consider the Aspect of Responsibility
If you are the type of person who tends to worry about every little thing in life, you may want to work with a professional when the topic turns toward filing your income tax return. When you enter incorrect data, you are ultimately responsible before the Internal Revenue Service (IRS). If you hire a certified public accountant or other qualified tax professional, the accountant is responsible for any mistakes.

The Beauty of Choosing a Third Party Designee
Furthermore, you have the option to check the Third Party Designee box found on Form 1040. If you check the box authorizing a third party, the tax professional bears all responsibilities if there are any questions pertaining to your income tax return. Of course, you must provide the accountant with accurate information and honest receipts including details about your income. A professional has to have all the data before preparing your tax return.

All Accountants are not Equal
It goes without saying that some accountants are better than others. Consequently, if you decide to hire a professional to prepare and file your tax return, choose the person carefully. If you pick the wrong professional, you could actually end up paying more taxes because of the accountant's blunder. In addition, you need to trust the person you hire. Otherwise, it is better if you prepare your own tax return.

Deduct the Tax Preparation Cost
If you itemize your deductions on Schedule A, you can deduct the fees for preparing your tax return. This deduction is available whether you prepare your own taxes or work with a professional. Even though this deduction is not going to make you rich, the ability to deduct additional tax preparation expenses offers a positive incentive toward contracting with a certified public accountant or tax lawyer.

A Professional May Find Other Deductions
Your software may not know about every possible deduction because you may not think about all the acceptable possibilities. On the other hand, it is the task of a professional to contemplate every possible legal angle meant to help you save money and receive a higher tax refund. When you own a more complicated small business with numerous deductions, you may want to hire an accountant. Free up your time and concentrate on growing your business.