Name recognition has a lot of power. We’re much more likely to purchase something if it comes from a brand we’ve heard of, and taxes are no different.
Just over a third of Americans hire a tax professional rather than filing themselves (37%, according to a survey done by Talker Research for Tax Slayer Pro), with 53% of DIY filers considering the switch to a tax professional within the next two years.
So is a small, local firm right for you, or will a chain do?
Why Hire a Tax Professional?
It’s simple to DIY your taxes when all you have is a W-2 and a couple forms about student loan interest or healthcare subsidies. It’s basically plug and play—and the IRS provides a free, accessible filing option called Free File that allows you to handle your tax return quickly and efficiently.
But once you start looking into credits, deductions, dependents, and more, it gets more complicated and you might start to worry that you’re leaving money on the table. Remember: the IRS will let you know if you’ve underpaid your taxes due, but they won’t reach out to let you know that you were eligible for a deduction or credit.
Big life changes like marriage, buying a home, starting a retirement account, or having children are often the reason people pivot from DIY to hiring a tax preparer.
Of the survey respondents who hire a tax pro, 69% say tax preparers are more knowledgeable, 41% want to maximize their refund, and 96% report that hiring a professional makes them feel more confident about filing their tax return.
Among the individuals who DIY their taxes and would consider switching to a pro, 55% would switch due to more complexity in their tax situation, 27% would make the pivot based on changing tax laws, and 25% said it would come down to their time and bandwidth.
So You’re Going Pro – Why Choose Local Over Chains?
Similar to the DIY vs. pro question, a national chain tax service is fine for a simple, straightforward return with a W-2 and standard deduction. However, a local tax firm typically has more expertise to offer when it comes to tax planning and strategy, communicating and handling disputes with the IRS, and more complex returns with multiple income sources, credits and deductions, etc.
Take us, for example. Tree City Tax Service is a boutique tax firm—we’re small, by design, in order to provide hands-on support that doesn’t make our clients feel like just a number.
When you hire Tree City Tax Service to file your taxes, we don’t just see you once a year during tax season and send you on your way. We support you year-round with strategic tax advising to help you reduce your tax liability and choose the most tax-beneficial ways to save for your financial goals.
Whether it’s retirement, college savings, medical expenses, or something else entirely, having a tax pro on your side means you don’t have to guess about your financial future.
Shop Small, Shop Local
For many Americans, supporting local business has become a priority in an age where big corporate brands move in and push small businesses out of their neighborhoods. Choosing a tax professional that’s based in your community shows that you value keeping your dollars circulating in the local economy.
Studies have found that when you spend with a local company, those funds stay in the local economy two to four times longer than dollars spent with a non-local company. Thus, hiring a locally-owned and -operated tax service means supporting your local economy and the people who live in your city. More wealth, more jobs, more charitable contributions and community support. It’s a win-win-win!
Value and Personality Match
Another factor in hiring a tax professional is how a company’s public-facing values align with your own personal values. Most companies tout values like integrity, professionalism, client support, teamwork, and others. And for the average person, these values are perfectly acceptable. But they’re also not exactly saying much.
The more specific your own personal values, the more you may look for something above and beyond in a tax firm. For instance, if you were a child in the foster care system, you may be more likely to hire a tax firm that publicly donates a portion of its profits to a local foster care charity or adoption center. If you have strong political beliefs, you’ll likely feel more comfortable working with a tax pro who aligns with those beliefs.
In the age of social media, you can almost always find more than the standard company line when you follow a tax company. Even a company’s sense of humor might set them apart in the noisy world of marketing and sponsored content you wade through in the morning to find your daily news updates.
Is it important to you that your tax preparer understand where you’re coming from? If so, values and personality are a very important part of the process. This is why we offer a complimentary consultation to make sure both parties are confident about the relationship before we commit!