As April 15th looms closer on the horizon, many individuals are exploring the idea of using a tax software program to prepare their returns this year. Software packages offer convenience, good prices (in most cases) and organization but can they really replace the personal touch of a CPA?

When tax software was originally introduced on the market, many accountants thought it would mean the end of clients who only needed help with simple returns. They expected to continue providing services for more complex personal tax returns, and predicted the software would take care of those smaller clients. That didn't happen, and there are a few reasons why:

CPAs comprehend human goals. An accountant can have a conversation with a client and discuss personal priorities and financial goals. No software can do that - yet.

CPAs find the red flags that software can't catch. Whether it's large deductions associated with small amounts of revenue, travel & entertainment deductions or home deductions, an accountant recognizes these audit-flagging items and knows how to review them. Today's software simply can't effectively catch or amend items like these.

CPAs develop strategies. If someone uses software alone to complete his or her tax return, there is no specialized experience or advice that comes along with that for the following year. Accountants can provide suggestions and discuss strategies for improved planning and financial success on next year's return.

This is not to say that many tax software packages don't offer some great services. But for all of their complex applications, tax software still lacks the personal touch-and human skills-offered by a CPA, who can understand and act on the complete needs of a client.

Tax software is no replacement for a CPA, but it can be a great tool when used in combination with an accountant. If you would like to learn more about tax software for yourself, we suggest the following web sites:

www.turbotax.com
www.taxact.com
www.taxcut.com
www.taxmaster.com
www.taxslayer.com