Turbo Tax Vs CPA (For a business)

[michaeljkrell]

Which would you suggest for our business? We are an LLP. Looks like turbo tax is about $150 for fed and state and I think a CPA would be around $750-$1000. I don't necessarily see an advantage to a CPA. I have used Turbo Tax the last two or three years with no problems when it was just a sole proprietorship.

 

[randallr]

Really depends on how will you understand the 1120s(I think that is the form you would fill out).

 

[michaeljkrell]

I found a link through dealtracker that let me download their business software for free (if you just go to their website you don't get a free trial on it), so I will play around with it.

 

[robbie]

I would say a CPA, just because it is their job to know tax laws and they are liable for mistakes. If you made a rookie mistake you are SOL.

Also, most will organize and put that years tax info into an easy to use and presentable file folder of sorts, which is good news if you are ever audited.

PS- if you have a CPA do it, it will give you more time to make goods for the forumites (profit).

 

[AR_Six]

Knowing what I know now about tax law I would never, ever trust it to a computer program. There is a point at which they begin to cost you money, and a professional more than pays for their own fees in terms both of pure economic return (time saved etc) and actual tax savings.

 

[FidelCashflow]

Unfortunately, you never know for sure whether it's worth it to hire a qualified accountant for small business tax return like yours until after the fact. Sometimes you'll look at the work they hand back and think "I could have done that", other times, there'll be stuff you and TurboTax would never have had a chance at picking up on which may be make a difference of several thousand dollars.

Plus CPA's should be able to do some basic tax planning for your company which can save you big bucks in the future.

 

[randallr]

One thing I forgot. How much fixed assets do you have? Do you own your building? Have a lot of equipment. I'd get a CPA if I were you they will help you depreciate your stuff and pay as little taxes as are legal.

 

[FidelCashflow]

Originally Posted by randallr

One thing I forgot. How much fixed assets do you have? Do you own your building? Have a lot of equipment. I'd get a CPA if I were you they will help you depreciate your stuff and pay as little taxes as are legal.
Don't US tax programs like turbotax automatically do that for you? For your average business with a building, some furniture, a car, and some computers it's pretty straight forward

 

[AR_Six]

Capital cost allowance (or whatever you call it in the US via %age deductions of depreciable capital property) is so simple a 12 year old could figure it out, that's not the issue. You just plug in some numbers. Tax planning is the issue, so that the numbers you end up plugging in later allow you to defer as much tax as possible. Particularly if the business ends up growing dramatically.

 

[michaeljkrell]

Yeah, we don't have a whole lot of assests and we are able to do a 179 (?) deduction which depreciates everything in one year at least for the value of our assets which are mainly sub $500 sewing machines and sergers.

I guess everything seems pretty straight forward. I just take everything I have entered into Peachtree and put it into turbo tax. You got sales, expenses, cogs, beginning inventory, ending inventory, assets acquired, assets sold, partner's contribution, partner's draw. We don't have any outside investments, no loans to pay down.

 

[michaeljkrell]

I guess I will give a call to the accountant tomorrow I get things rolling. Hopefully he will only charge arond $300-$500 since everything is pretty much in order.

I agree it would be good to make sure everything we are doing is on the up and up...

 

[FidelCashflow]

Originally Posted by michaeljkrell

I guess I will give a call to the accountant tomorrow I get things rolling. Hopefully he will only charge arond $300-$500 since everything is pretty much in order.

I agree it would be good to make sure everything we are doing is on the up and up...

Good idea. Don't be afraid to call a few guys, pricing can be pretty inconsistent. Also, make it clear you have a really straight-forward business.

 

[michaeljkrell]

My dad has an accountant that he has used for his personal and business for years. Just the idea of talking to an accountant gives me anxiety.

 

[FidelCashflow]

Originally Posted by michaeljkrell

My dad has an accountant that he has used for his personal and business for years. Just the idea of talking to an accountant gives me anxiety.

Am I making your palms sweat?

 

[michaeljkrell]

You are making my hiatal hernia act up...