Every tax season, I see people in this community agonizing over whether to file their own taxes or hire a professional. As someone who does both (DIY for simple years, CPA for complex ones), here are my thoughts on when each makes sense.
When DIY Makes Sense
You are a good candidate for DIY if:
- W-2 income only (or limited 1099)
- Standard deduction user
- No rental properties or complex investments
- Comfortable with tax software
- Time to review your return carefully
The Beancount advantage for DIY:
Your data is already organized. Running bean-report income gives you totals that drop directly into TurboTax or FreeTaxUSA. The hard part (categorizing and organizing) is done.
Cost savings:
- TurboTax Free Edition: $0
- TurboTax Deluxe: ~$60
- Basic CPA return: $300-500+
When a CPA Makes Sense
You need professional help if:
- Self-employed with significant income
- Rental properties
- Stock options, RSUs, or equity compensation
- Multi-state tax situations
- Complex investment gains
- Business entity (LLC, S-corp)
- IRS notices or audit risk
- Major life changes (marriage, divorce, inheritance)
The hidden cost of DIY mistakes:
I had a client who did their own taxes for 5 years with RSU sales. They incorrectly reported cost basis and overpaid by $4,000+ per year. Amending cost them time and professional fees anyway.
The Middle Ground
Do your own prep, have a CPA review:
- Use Beancount reports to organize everything
- Input data into tax software yourself
- Pay a CPA $100-200 for a “second look”
This catches errors at a fraction of full-service cost.
How Beancount Changes the Calculus
Having clean, organized books shifts the equation. A CPA can prepare your return faster with good records. Some benefits:
- Lower fees (less time = less cost)
- Better advice (they can focus on strategy, not data entry)
- Easier audit defense (records are already organized)
If you use Beancount properly, you are already doing the expensive part of tax prep yourself.
My Rule of Thumb
- Under $100k income, simple situation: DIY
- Over $100k OR any complexity factor: at least consult a CPA
- Self-employed with business expenses: always CPA
What factors influence your decision to DIY or hire a professional?
Great framework @bookkeeper_bob. As a CPA, I will add the professional’s perspective.
Why CPAs Add Value Beyond Tax Filing
1. Tax Planning, Not Just Compliance
Filing your return is looking backward. A CPA helps you look forward:
- Estimated tax payment strategy
- Retirement contribution optimization
- Entity structure decisions
- Timing of income and deductions
2. Knowing What You Do Not Know
Tax law is complex. Recent changes include:
- QBI deduction phase-outs
- SALT cap implications
- Clean energy credits
- Cryptocurrency reporting rules
A DIY filer might miss credits they qualify for or make errors that trigger audits.
3. Representation and Defense
If you get an IRS notice, a CPA can:
- Respond on your behalf (enrolled agents and CPAs have representation rights)
- Navigate the appeals process
- Negotiate payment plans or offers in compromise
DIY filers are on their own.
How to Get the Most from a CPA
Come prepared:
- Beancount income statement and balance sheet
- All 1099s and W-2s
- List of questions or concerns
- Major life events from the year
Ask strategic questions:
- “What can I do differently next year?”
- “Am I maximizing retirement contributions?”
- “Are there deductions I am missing?”
A well-prepared client gets better advice because we spend time on strategy, not chasing receipts.
My Advice
The value of a CPA is not filling out forms - software does that. The value is knowledge, strategy, and representation.
If your situation is truly simple, DIY is fine. But “simple” is rarer than people think. If you are reading this forum and tracking finances in Beancount, you are probably not the typical W-2 worker.
I have done both and here is my honest experience.
My DIY Years (2018-2022)
Situation: W-2 employee, some stock sales, standard deduction.
I used TurboTax and it was fine. Maybe took 2-3 hours. The Beancount reports made it easy - I just needed to verify income matched W-2s and enter the numbers.
Total cost: ~$100/year (TurboTax + state)
When I Switched to CPA (2023-present)
What changed: I started freelancing seriously. Added Schedule C, estimated payments, home office, and equipment depreciation.
First year, I tried DIY and gave up after 6 hours. Too many forms, too many edge cases, too much at risk.
My CPA costs: $450/year
But here is what I learned:
- My CPA found deductions I missed ($2,000+ first year)
- She suggested quarterly payment strategies that reduced penalties
- She caught an error in my stock basis that would have cost me
- Peace of mind has real value
The Beancount Factor
What really changed my CPA relationship: I show up with clean books.
My CPA told me most clients bring shoeboxes of receipts. I bring a Beancount income statement, balance sheet, and supporting schedule. Her time is spent on advice, not organization.
Result: I get better service at the same price because I am not a difficult client.
My Current Approach
- Prepare everything in Beancount (ongoing through year)
- Run reports in January
- Send to CPA with questions
- Review draft return together
- She files, I pay
Best of both worlds: I understand my finances, she handles compliance.
As the CPA in this conversation, I want to share one more perspective: when to fire your CPA.
Red Flags in a Tax Preparer
Not all CPAs are equal. Warning signs:
1. They Never Ask Questions
If your tax preparer just takes your documents and returns a finished product without discussion, they might be missing things. A good preparer asks about life changes, plans, and concerns.
2. They Cannot Explain Their Work
“Trust me” is not an answer. You should understand why you owe what you owe and what deductions you are taking.
3. Same Advice Every Year
Tax law changes. Your situation changes. If you hear identical advice year after year, your preparer might be on autopilot.
4. Guaranteed Refunds
No ethical preparer guarantees outcomes. If they promise specific refund amounts before seeing your documents, run.
5. They Discourage Questions
You are paying for expertise. If they make you feel stupid for asking, find someone else.
Finding a Good Fit
For Beancount users specifically, look for a CPA who:
- Is comfortable with technology
- Appreciates organized clients
- Explains the “why” behind recommendations
- Offers planning conversations, not just filing
- Responds to emails reasonably quickly
The DIY Reality Check
For those going DIY: test yourself. After filing, can you explain:
- Why you chose standard vs itemized deduction?
- What QBI deduction is and if you qualify?
- How your effective tax rate compares to marginal rate?
- What estimated payments you should make next year?
If you cannot answer these, you might benefit from professional guidance even with simple returns.