Should I use an Accountant or TurboTax? - Straight Talk CPAs (2024)

A survey conducted at the beginning of last year established that about 35% of people use TurboTax 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 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, accountant or filing your taxes through software, such as Turbo Tax.

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

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 credits 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.

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 altogether, 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.

TurboTax small business software 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 as 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 smartphone 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.

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 who 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 is out of the question.

I can’t deny that taking a picture of a tax form and having the data be inputted into a tax form is 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.



When it comes to filing your taxes for the upcoming year, you may be tempted to use TurboTax or one of the other tax preparation software programs. It seems more convenient and cheaper to do it yourself. Even though TurboTax and other programs are easy to use, they have their own limitations. Spending the extra cash to hire a professional can actually save you money in the long run if your financial situation becomes complex. Below are some tips for when you should leave the software to an experienced professional.

CPA vs TurboTax

Pricing for TurboTax software ranges from $40 to $180, which does not include state tax filing or other add-ons. An itemized 1040 and a state return cost an average of $323 to be prepared by a TurboTax professional, according to the National Society of Accountants. Turbo Tax CPA: $40 - $180, $323. Non-Business, including W2 employees, prices start from $89 for self-service and can reach anywhere from $169 for the Live Assisted option, and $289 - $511 for the full-service options. Prices may be subject to change.

If you have the time and patience, you may want to do your taxes yourself. But, taxes aren't something you should do while watching television on the side. It will take some time to prepare your tax return - the IRS estimates that the average person spends up to seven hours gathering forms and preparing their tax return. You can expect to spend 20 hours on taxes if you are a business owner. You may be asking yourself, is TurboTax good?



If you have a straightforward tax situation, no dependents, and no significant assets or charitable contributions, TurboTax may be a good choice. Tax preparation software was created for people who have few deductions and other financial factors to consider.

Choosing to work with a professional is better if you lack the time, patience and expertise with the ever-changing tax laws. You might consider outsourcing your taxes to an accountant if you believe the time you would have to devote to them would be better spent elsewhere. You're likely to make fewer mistakes if you don't rush through your filing. A tax accountant is necessary if you have dependents, investments, significant assets or charitable contributions, or if you own a business. Tax consequences accompany nearly every financial transaction, and the more transactions you make, the more things you need to keep in mind. A professional might be useful to people who own businesses, freelance, or are self-employed because their atypical tax situations might be flagged by an audit. These situations can include deductions for home offices, meals and travel on business, and vehicles.



If you plan to itemize your deductions, you should hire a tax professional. As a result of the Tax Cuts and Jobs Act, fewer taxpayers are itemizing deductions. Depending on your circ*mstances (such as medical expenses, mortgage payments, and charitable donations), you might save more if you itemize your deductions over taking the standard deduction. Itemizing can be tricky to figure out for the first time, especially if it's your first time.

Stick with an accountant if you've had a major life change in the last year. Have you recently gotten married? Did you just buy a house? Do you have a child? Each of these impacts your tax filing, and you might want someone to show you how to document them on your tax return the first time. When it comes to your finances, hiring an accountant is a good idea if you don't trust yourself to decipher new tax laws and regulations. It might be best to leave tax preparation to a professional if you are uncomfortable about entering numbers and having to deal with the tax authorities in the event of an error or red flag on your tax return.