Should I use an Accountant or TurboTax?

A survey conducted at the beginning of last year established that about 35% of people use Turbo Tax to file their taxes, 30% use an accountant, and the other 35% of the population have a friend do it, do it themselves, or don’t file at all.



As a practicing CPA, who truly enjoys what he does, this information is a little sad.

To begin, I never want to hear that individuals are not filing their taxes, but I am not naïve to think the percentage would ever be 0. But the data that really breaks my heart is that the percentage of people using a tax prep software is higher than that of the population using an accountant.

Meaning, the CPA/client relationship is diminishing in prevalence and value.

But I am not here to read you an entry in Salim’s diary, I am here to give you the facts!

In this article I will cover all the pros and cons that come along with using a CPA or filing your taxes through a software, such as Turbo Tax.

I always like hearing the good news first, so let’s start with some pros.

Pros For Using An Accountant

You can set up a meeting with a CPA and engage in a face to face conversation about your tax and financial situation. Many people really value that conversation and want to have that one on one time to understand the tax return process and help uncover all possible credit and deductions.



If you are employed, you may have questions relating to the tax implications of changing jobs or a life event.

As for business owners, these conversations help you establish a relationship with the accountant, hopefully leading him or her to be a trusted business advisor in the future. For example, let’s say you just converted your business to an LLC. An experienced accountant will be able to sit down with you and explain step by step how to file for taxes and how this year differs from last.

Cons For Using An Accountant

In my ideal world, every CPA functioned at the most optimal level, I could eat as much ice cream as I wanted and never gain a pound, and every pro listed above would be fact!…But this is the real world.

Accountants can double and triple check but there is still the possibility of error and you may miss out on a valuable deduction.

Another con of working with accountants, who are said to be poor communicators, is that a lot of them are. Some even forget to communicate all together, especially during the warp hole of tax season. Whether it is by email or phone, they do not always see the importance to “stay in touch” or “check in”, which can make a client feel forgotten and unimportant.



Finding an accountant you can trust is also a challenge. You have to do your research, look up testimonials, etc. And when you finally find one you want to work with, their office is far away.

Turbo Tax automates the prep process, which is often the most tedious step for the client. They let you prepare and file in a fast and inexpensive way by importing the files. You then enter some information and the algorithms embedded in the software do the rest.

The software is highly intelligent, but I would not go as far to say it is artificially intelligent.

This tax prep software has a lot of benefits that support our digitally driven world.

For example, you can take a picture of your W-2 on your smart phone or tablet, verify the information, and Turbo Tax will place the data in the proper tax forms. Never having to leave the comfort of your home to send out your tax documents.



If you ever run into a real predicament, Turbo Tax also implements a SmartLook system where you can press a “mayday” button and a CPA will show up on screen to answer the question for you.

Cons For Using Turbotax

I will admit that Turbo Tax’s attempt to engage with their clients is admirable, but how can we trust this CPA that just popped up in the corner of my screen. Pretty much linking up with a stranger that knows nothing about your tax and financial history.

Another con of using Turbo Tax is that it can’t think outside the box. It can only function at the ability or number of the algorithms that are programmed in it. So finding those unique deductions are out of the question.

I can’t deny that taking a picture of a tax form and having the data be inputted into a document is not so totally AWESOME, but how is a client to know that the information is in the right place.

Let’s call on “Box in the corner Bob” to clarify that for us.

I understand that as a practicing CPA, my heart lies in the good ole’ face to face interaction with a client. Getting down to the meat of their financial problems and creating a game plan for them to have more and more success but I see the easiness that comes with Turbo Tax.

Just do the research and find out what is best for you.

If you need any assistance implementing these strategies or any other tax-saving strategies in your business? Give our Straight Talk CPAs a call at 732-566-3660 or click here to schedule a FREE 30 Minute Tax Minimization and Profit Maximization Strategy Session.