There are a handful of software programs that walk you through the intricacies of filing as a small business owner. But nothing supplants the knowledge that a really good tax person holds.

This year, I went to H&R Block and met with a tax advisor who’s been working with small business owners for 20 years. She not only helped me figure out my federal and state for this year, but also helped me prepare for next year. Well worth the $400 the service cost.

Before the meeting, she had me do some preparation. I had to gather up all my W-2s and other revenue records. I had to estimate what I might make in 2005. I pulled together my medical expenses, business expenses, home (including mortgage, condo fees and maintenance bills), utility expenses and more. Luckily, I’d put all this into QuickBooks Premier Professional Services Edition (which I highly recommend), then printed out reports for each type of expense.

When we sat down together, my tax advisor asked me a few questions about the home-based business, including square footage of my office area. I pulled out my condo’s floor plan so we could get the exact amount to apply for deductions. Some things I didn’t know - you can count mileage and tolls to and from any business errand or appointment. You can also deduct your medical premiums and any other medical expenses you incur.

She walked me through the considerations in filing as a home-based business. This was invaluable information - a hands-on tutorial of sorts. Then she figured out how much I owed. She also helped me determine how much I’d have to pay quarterly for state and federal over the next year. This includes Social Security payments, as well.

Finally, she explained to me about Simplified Employee Pension (SEP) IRAs and how I could pay into one - up to 25% of your compensation without exceeding $41,000 in 2004 and $42,000 in 2005 - and, therefore, pay less in taxes. She did some quick calculations of how much I made and then determined what I could pay into a SEP IRA for last year and what I should plan on contributing this year. (Use this calculator to figure your own contribution amount: http://personal.fidelity.com/products/retirement/getstart/newacc/sepiracalc.shtml.) Rather than paying the government more money in taxes, this lets me put that money toward my retirement - something I would have never known by doing my taxes myself.