Sunday, February 8, 2009

Give your Tax Man a break and save on fees

Instead of bringing a bushel of receipts, it would be better if you could add your medical expenses and give the accountant a single figure or a breakdown by categories such as doctor’s, medicine, and medical insurance-- Same for other items that need to be totaled. If you bring all the receipts and the accountant has to sort through them and add them, you could be paying $ 150 per hour or more for low-level clerical work and he will not know what some of the receipts represent—they could be tax deductible items or they could be your grocery bills.
The main reason to have your tax return done by a CPA is because you expect him to know what needs to be reported and where to enter it in his computer so that it prints in the right places. His fees are based on his knowledge and experience in tax and accounting, not based on his speed with a calculator.

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