Connecting a phonostage to a processor.

Hello, this might seem like a dumb question, but I currently have a Parasound JC3 plus phonostage connected via RCA cables to my Classe Sigma SSP. My Classe has a digital bypass option, which allows the analog signal to pass freely to the amp. Would I be degrading the sound quality if I did not use the bypass feature, thereby sending an analog signal to Classe, then having the analog signal running through the DAC of my processor? Seems like that would be an extra layer of processing that would cause some distortion. However, I think my turntable actually sounds slightly better not using the bypass option.