Why Accountants Don't Teach Clients How to File Their Own Taxes
As the Founder and CEO of a large private company for over 40 years, I have been deeply involved in all aspects of financial management, including tax preparation. I prepared tax returns for my company for many years, but eventually, I reached a point where I deemed my time better spent elsewhere. I then employed a Certified Public Accountant (CPA) with a Master’s degree in Taxation. Among that individual’s duties were staying current on the latest tax changes, filing returns in a timely manner, etc. I now employ additional tax professionals, including a tax attorney.
The Profession of Providing Accounting Services
Accountants are in the profession of providing accounting services, not teaching tax preparation. Providing such services allows them to offer expert advice, ensure compliance, and leverage their specialized knowledge to navigate complex tax regulations effectively. Moreover, in the legal profession, specifics and regulations change on a regular basis, especially regarding taxes.
Economic Incentives and Business Practices
The simple answer is that accountants charge clients for tax preparation services. If a client started preparing their own returns, accountants would lose this income. However, many clients may not want to take on this responsibility due to the complexity of tax laws. For clients who do desire to learn, accountants could charge a fee for teaching. A prime example is H.R. Block, which offers a series of tax courses to train people to become employees of HRB. However, completing these courses does not guarantee a job offer, and even those hired still need to complete additional training before preparing returns for clients.
Critical Thinking and Consistency
Teaching clients how to file their own taxes would require a comprehensive and detailed course. The average neighborhood accountant is unlikely to offer such a detailed tax course. Additionally, tax laws change every year, so even those who complete the course would need an annual update session. This ongoing process is both resource-intensive and time-consuming, which is not a model that most accountants find feasible in their busy schedules.
Conclusion: Beyond a Basic Understanding
In conclusion, accountants are best positioned to provide expert tax preparation services rather than teaching clients how to file their own returns. Clients benefit from the specialized knowledge and experience of professionals who can navigate the ever-changing landscape of tax laws and regulations. While teaching clients might seem like a logical step, the practical and economic realities make it an impractical and potentially detrimental strategy for most accountants.