Both titles use a process of questions and answers to guide you through filling out your return. Depending on answers you give, you be taken to different sections as required and you’ll skip over irrelevant stuff. There’s plenty of help along way. If your unsure of whether a deduction applies to you or if you should include a certain form in your return, help files offer great direction and provide several examples where you will find your situation described. If all else fails, there are links to IRS website where you can access bulletins that they provide for additional directions to each form in return.

Taxcut will check your return for all types of errors, both typographical and comprehensive. For instance, if you mis-enter your SSN or forget to enter a value, it will prompt you to go back and correct this. It will also show you any items that are typical “flags” to IRS. For example, Taxcut might say something like “Your total for charitable deductions is $5,000 – average donations reported by people in your income range in 2003 was $3,000.” Not necessarily an error, but good to know so that you can make sure you have all proper documentation to back up something that might raise an eyebrow at IRS.

While you could probably still not refer to doing your returns as “easy”, these software packages have certainly streamlined process.

Finally, will doing your own taxes really change your life? Honestly, I think in some small but positive ways, yes. The satisfaction of having completed this project on your own is somewhat uplifting and should give you a slight boost in self esteem. Add “I do my own taxes!” to enhance your resume. This certainly displays your ability to solve complex problems and shows your go-getter attitude. But seriously, preparing your return will definitely force you to pay attention to certain critical aspects of your own personal finance. It’s wise to be familiar with tax code or at least portions that pertain to you and effect your return. Arming yourself with this knowledge will allow you to plan and make future decisions with some idea of how your strategy will impact your tax standing. Knowledge is power and all that…

One parting thought – I cannot imagine going through this task, through all of pain and suffering, questions and answers, receipt hunting, number crunching, gut wrenching process only to find that your refund calculates in negative. So, if you are one of those unfortunate, under-withheld individuals who ends up owing Uncle Sam every year, then by all means, hire an accountant!

Brian Neuman Webmaster http://www.honeybeadjewelry.com

6.To bridge-finance equity transactions. Occasionally, start-ups are able to obtain short-term loans to bridge upcoming equity transactions. These loans are usually well secured by all-asset liens against these companies and are generally available for short time frames. Most venture lenders who provide this type of financing require equity kickers in form of warrants to purchase stock in start-ups or stock issued directly to them by start-ups.

7.To hedge against rapidly depreciating equipment. Venture leases can be structured as fair-market-value leases. These leases usually allow lessees to renew leases at fair-market-value renewal rates, to purchase equipment at fair-market-value purchase prices, or to return equipment to lessors at end of leases. The return option allows start-ups to conveniently dispose of obsolete or unneeded equipment.

8.To replace venture capital. Start-ups are using loans in form of subordinate debt as a substitute for additional equity rounds. These loans can be collateralized or unsecured and can be used for many of same purposes as equity funding – to continue product development, to add key personnel, to expand marketing and to support sales efforts. Venture lenders generally charge a premium rate for these loans and require sizeable equity kickers in form of warrants or ownership shares in start-ups. These loans are generally cheaper than equity financing and may amortize faster.

9.To spread equipment cost over productive life of equipment. By being able to spread cost of equipment over an extended period, start-ups can get productivity out of these assets while they pay. Paying for assets out of internal cash has just opposite effect.

10.To quickly build out infrastructure to allow all employees to be more productive sooner. Venture leasing and lending allow start-ups to add computers, phone systems, networking equipment, software and other business essentials quickly. Employees can be more productive sooner and benchmarks can be reached faster.

Using venture leases and loans is a smart choice for savvy entrepreneurs. It allows them to build substantial equity value with minimal dilution. These arrangements usually do not require board representation or loss of management control. Start-ups are able to add needed equipment and finance working capital with lots of flexibility. Additionally, these forms of financing are significantly cheaper than likely alternative, more venture capital financing. Savvy entrepreneurs have discovered these advantages and are using them to put their firms ahead of pack.