Now that bookkeeping and tax software programs are consistently reliable and accurate, as well as user friendly, do you really need to have an accountant doing this work for you? Consider this, especially if you are on a fixed income: The average hourly rate for general bookkeeping is $75 for a CPA and $48 for a noncertified practitioner. Are these expenses really necessary?

If you want to learn bookkeeping, you will find an easy tutorial located at: So, You Want to Learn Bookkeeping!. Still interested? You can purchase bookkeeping software like QuickBooks or Quicken for about $100. Technical support is available by phone or email. For a comparison of simple as well as complex bookkeeping software, visit Top Ten Reviews - Personal Finance Software Review. More complex bookkeeping software is compared here: Top Ten Reviews - Accounting Software Review.

As for doing your own taxes, if you keep your bookkeeping program up-to-date, then the information needed to file your tax returns is easily generated by the push of a button, ready for your tax preparer. But think about that push of a button. Do you really need to take those reports to a tax specialist or a CPA? Having a professional do your taxes can range from $105 for filing simple 1040 tax forms at H&R Block to $1,800 for a more complex return done by a CPA. But you could purchase tax preparation software such as TurboTax for about $80. It will take you anywhere from two to four hours to complete, once your information is gathered and ready for input.

A comparison of popular tax preparation software can be found here: ConsumerSearch - Tax Preparation Software Comparisons. Want to “go green” and eliminate all the paperwork? Check out a comparison of online tax reporting software here: Top Ten Reviews - Online Tax Software Review.

Clearly there are tools and resources available to do-it-yourself and save some money. But is it prudent for you to do so?

Retain your accountant if

• you own and manage multiple businesses
• you are carrying forward depreciation or losses
• your situation has changed. Getting married or divorced, buying a new home, or inheriting large sums of money will significantly change how you prepare your taxes, especially the first time. Navigating pertinent tax laws could be challenging.

Consider letting go of your accountant if

• you have the time and energy to learn how to use bookkeeping or tax preparation software
• you are not managing multiple businesses
• you have no huge cash or business transactions, tax issues or questions that need to be addressed
• you file an EZ 1040 form
• you file a simple 1040 tax form and your income is derived from wages and interest and simple investments