Today's post is by Judy, based on her experiences with the Twin Translations (an S-corporation) tax preparation process in the U.S.
Doing my taxes, both business and personal, has always been one of the tasks I gladly outsourced. However, our long-term CPA made a significant mistake last year, didn't return five or six messages we left her, but still sent us a holiday card thanking us for her business (an apology would have been better). I won't work with her again, so I met with a few other CPAs in town. I am really not that price sensitive as long as I feel that I am getting value, butI was quite underwhelmed by my experiences meeting with CPAs. None of them really gave me the feeling that they would add value to my tax process -- in particular, that they would find me deductions I wouldn't myself find, would make the process a breeze, and that their pricing structure would be transparent. None of them had price lists, and most couldn't give me a specific amount that my tax returns would cost after I'd told them exactly how I would submit the information to them (that is, I would NOT hand them a shoebox full of receipts). Some gave me ranges for estimates, for instance, $200 - $350 for one return. That's a wide range, and didn't make me feel warm and fuzzy. A $300 - $350 range would have been acceptable.
I am no tax expert, but I've read several books on taxation for small businesses, and the CPAs I interviewed didn't really sell me on their services. Perhaps they do know how to find these deductions, but they didn't tell me, so I am not hiring them. If it cost me $500 to have my taxes done, but it would make my life easier and I would benefit from all kinds of semi-secret tax code things I don't know about, I would be all for it. However, as things stand right now, hiring a CPA just creates more work for me. I have to compile my (highly organized) information, send/e-mail the documents, perhaps drive to the other side of town for a meeting -- all that for someone to (presumably) plug my numbers into a tax software? Plus, I do like having control of all the steps of the process, because it makes me feel more vested, so with the help of the dummy-proof (I need it!) TurboTax, I can plug in the numbers myself. I got a great deal at Costco for our personal taxes (Deluxe edition) and went to OfficeDepot to get my full business version. I used my rewards card, which means I'll get a $20 coupon in the mail soon. Of course, hiring a professional has many advantages, including a buffer if and when the IRS should audit you. However, my accounting is quite transparent and easy, and I shouldn't have anything to fear from the IRS. For the record, according to TurboTax, the chance of my S-Corp getting audited is 0.4%.
I am sorry, dear CPAs and fellow small business owners: you didn't convince me that you'd add value to my process, regardless of the price. What do our fellow translators think? How do you handle your taxes?