Tuesday, October 16, 2007

You cannot outsource financial work

One of my favorite financial bloggers, PFBlog writes about spending 10 hours a year on his taxes despite his employer, Microsoft, paying for KPMG to file his taxes for him (what a great perk!). I have lots of friends who pay accountants despite not having taxes as complicated as his.

Like him, I always do my taxes (I also do a few other people's), and I find that it is essential in order to understand the overall picture behind taxes, how they work, and what changes year after year. On top of that, by doing taxes yourself in TurboTax, you also gain access to the wonderful tax audit protection service provided by Tax Resources, Inc at an amazing price.

My aunt is an accountant, and despite her years spent preparing taxes for corporations, TurboTax outperforms her in terms of getting money back. Outsourcing your taxes is a lot like outsourcing your financial planning: without a clear understanding of what you are doing, you will not get satisfactory results.
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