I often get the question, who does a better job preparing income taxes a Retail operation or a CPA?
In full disclosure, I am a Certified Public accountant in the Commonwealth of Pennsylvania.
The answer is it depends on the complexity of your tax return, services required and turnaround time.
Pros of a Retail Preparer:
- Quick turnaround, especially for non-complicated tax returns.
- Competitive pricing.
- The larger organizations have established quality control and will stand by their work.
- Many offer services like an advance on your refund – [these are technically loans].
- Many are connected to Insurance agencies.
Cons of a Retail Preparer:
- May not be able to handle complicated tax returns or offer in-depth tax advice
- Most are not regulated by the Federal or State governments.
- High turnover, may mean that you will not see the same tax preparer year after year.
- Unless they have a CPA or Enrolled agent on staff they may not be able to contact the IRS on your behalf.
- Payment is generally due at time of service
Pros of a CPA preparing your taxes
- High decree of training, many have advanced degrees in taxation
- Can handle very complicated tax returns, give tax advice and provide tax planning
- Higher retention, meaning you have a better chance seeing the same preparer year after year.
- Can execute a power-of-attorney and contact the IRS on your behalf.
- Can handle IRS examination on your behalf.
- CPA are state licensed, operate under codes of conduct, and have continuing education requirements.
- Can assist on other matters such as bookkeeping for small businesses.
- May be more equipped to work remotely with you.
Cons of working with a CPA
- Turn around time may be slower, especially as deadlines approach.
- May be more expensive (but not always).
- May not offer services such as an advance on your refund.
As with any professional service, it is always a good idea to get a reference before you move forward. For retail operations, check Google and the Better Business Bureau. For CPA ‘s you can check the state licensing board(s).
If you are after a quick turn around, it is advisable to get your information organized and try to get to see your tax preparer in February in advance of the deadlines.
Thank you for reading this article.
.
.