Tax season can be stressful for many individuals, especially those with complicated tax situations. If you’re considering hiring an accountant to help prepare your taxes, one of the factors you’ll want to consider is how long it will take them to do the job. This article explores how much time it typically takes for an accountant to process taxes so that you can make an informed decision about whether or not hiring a professional is worth the investment.
How Much Time Does it Take an Accountant to Prepare Taxes?
The speed of completing taxes by an accountant relies on the intricacy of your return and how quickly you share all the necessary documents and tax information with them.
Planning ahead of the tax filing deadline is key to ensuring a smooth and successful process. Consulting an expert, like an accountant, will help you understand what timeline best suits your situation and needs. If you’re looking to streamline the process, various approaches can help you achieve this:
Cost and Considerations
When deciding whether or not to hire an accountant, it’s essential to consider both the cost and the time commitment. While do-it-yourself tax filing software can be relatively inexpensive, you won’t have access to the same expertise and thoroughness that a professional accountant can provide. Multiple elements can influence the length of time it requires to file taxes, and not all are within the control of the tax preparer.
Before you meet with a tax preparer, ensure all necessary paperwork is present. This includes any income statements from employers or other sources, receipts, and forms related to expenses incurred throughout the year.
Other common forms include:
W-2 Form
The W-2 form is a yearly tax document an employer provides to their employee that states the employee’s wages and other compensation for the given year. This includes any bonuses or commissions and benefits such as health insurance premiums or contributions to retirement plans. The information on the W-2 form is used to file taxes with the Internal Revenue Service (IRS).
1099-NEC Form
The 1099-NEC form (previously known as the 1099-MISC) is used to report certain types of payments made to non-employees, such as independent contractors and freelancers. It reports gross income paid to a non-employee for services provided during the year, such as fees, commissions, prizes, awards, rents, and other services.
1098 Form
The 1098 form reports interest earned on certain accounts, such as mortgages or student loans. It is used to report payments received from lenders and borrowers, including mortgage interest statements and tuition payments. In addition, this form helps taxpayers determine their eligibility for deductions related to interest paid throughout the year.
Tax Preparation for Small Business Owners
Tax preparation for small business owners can seem like a daunting task. But with the right tools and advice, you can make this process easier and less time-consuming. Here are some tips on what to do when it comes to prepping for tax season:
- Gather all necessary paperwork and documents: Ensure you have all your financial records, receipts, contracts, and other vital documents before filing your taxes.
- Understand the types of taxes: Determine which taxes you must file based on your business structure (sole proprietorship, partnership, or corporation). Different forms apply to each type of business.
- Take advantage of deductions: Ensure you take every deduction available so you don’t overpay in taxes. Prepare an itemized list including all expenses related to running your business. This will help lower your taxable income and minimize the taxes owed.
- Don’t forget about estimated payments: If you’re self-employed, remember to make quarterly estimated payments throughout the year to avoid penalty fees from the IRS. Estimate how much money you will owe come tax season by looking at last year’s filings or consulting a qualified professional if necessary.
- Hire a professional accountant: For complicated returns that require special attention, it may be best to hire an experienced accountant who can work through complex questions and provide guidance on maximizing deductions and reducing liabilities.
How Much Time Do You Spend Preparing Your Return
The time needed for preparing your return depends on the complexity of your income situation. For those with a simple return, it should only take an hour or two. But it could take several hours if you’re self-employed with considerable business expenses and deductions that need to be itemized.
Even more, time may be required if you have investments and rental property. Therefore, planning and gathering paperwork as early as possible is best to give yourself enough time for tax preparation.
Is It Worth Getting an Accountant to Do Your Taxes?
Yes, hiring a professional accountant when preparing your taxes is worth it. An accountant can help you navigate difficult tax situations and ensure you take advantage of all available deductions. They can also help ensure you don’t overlook any important details and provide valuable advice on minimizing liability. In addition, an accountant is knowledgeable about the ever-changing tax laws and can assist in keeping your business compliant with regulations.
How Does ReliaBills Help Your Accountants in Preparing Taxes?
If you’re an accountant, it’s your duty to provide accurate and timely tax preparation services to your clients. However, you must also ensure you get paid for your services. ReliaBills helps you get paid for your tax preparation services by automating invoicing, payments, and billing processes.
ReliaBills is a cloud-based invoicing and billing software designed to automate payment processes, reduce administrative overhead, and streamline payment processing duties. ReliaBills’ payment processing features include automated recurring billing, payment tracking, payment reminders, online payment processing, and much more!
ReliaBills also provides useful tools that help manage customer information, monitor payment records, and create proper billing and payment collection reports. As a result, invoice and billing management are simple and convenient. You also get access to active customer support, ready to assist you whenever you need help.
Get started with ReliaBills today for free! And if you need more features, you can upgrade your account to ReliaBills PLUS. For only $24.95 per month, ReliaBills PLUS will give you access to advanced features such as automatic payment recovery, SMS notifications, custom invoice creation, advanced reporting, and more!
ReliaBills provides an all-in-one solution to your invoicing and payment processing needs. With our convenient invoicing and payment processing solutions, you can focus more on what you do best: preparing taxes for your clients. So get started with ReliaBills today! Visit www.reliabills.com to learn more.
Wrapping Up
Now that you know how long an accountant takes to do taxes and the benefits of using ReliaBills, you should feel more confident in finding the right tax preparation solution. With ReliaBills, you can reduce the time and stress associated with preparing taxes while maintaining accurate records and collecting timely client payments. Create an account with ReliaBills today and simplify your tax preparation process!
