Accountants have been concerned recently with the rise of online web software. The days where every individual turns to an accountant to process their tax returns is over. Online web programs have been able to allow millions of Americans to do their own taxes. Accountants often worry about the future of their industry. But their jobs will never completely be phased out. Instead, there are still millions of people who want the personal connection and expert advice that accountants are able to provide.
Personal connection
Accountants provide a personal connection that is lacking in most tax preparation and accounting software. The personal connection provides a person for confused individuals to turn to. Accountants can provide kind words of encouragement and a personalized touch. Robert Tweed notes that they can offer specific guidelines and projections for what an individual can do to keep their payments straight.
They can also show how a person should structure their taxes and even their businesses. An accountant may be able to aid an individual in what accounts they should use for different tax purposes. He or she might provide guidance on new businesses that a person could start and how those businesses could aid an individual’s tax situation. This level of personalized help is impossible to receive from most forms of tax software.
Tax complexity
Taxes can be incredibly complicated for some earners. Most people only have to worry about W2s and simple refunds. They often take a standard deduction which can be processed in a few short minutes. But as Robert Tweed notes, the tax code for many people can be enormously complicated. There may be hundreds or thousands of different factors that go into the amount of a refund or tax payment.
Individuals have even more concerns if they have to file as a business or an independent contractor. The government requires many independent contractors to withhold a certain percentage of their earnings every quarter. If they fail to make those withholdings, they could be subject to significant penalties. Forms can easily multiply outside of the understanding of any individual. There is a chance that a person could miss a
Convenience
Many individuals like to use tax and accounting software for their convenience. But nothing is as convenient as letting someone else handle taxes and accounting instead. Individuals can bypass the data entry and potential mistakes inherent in tax software. There are also potential drawbacks in tax payment with tax software. Some forms of tax software wait until right before April 15th to actually pay an individual’s taxes. This practice creates instability and insecurity. In addition, there are a number of aspects of web preparation software that place all responsibility on an individual. Accountants transfer some of the responsibility of business maintenance and tax preparation to another professional.
Accountants may feel a considerable amount of pressure from accounting software. They may be worried about potential lost customers and the overall viability of their businesses. But these accountants will still be able to secure large payments into the future. As long as taxes and businesses are complex, accountants will still be a necessary part of the global economy.