A lot of people wonder if they should hire a personal accountant to do their taxes. Most are worried about going out of their budgets but also wonder if it’s something that will cost them more in the long run. If you’ve been wondering about this, the answer is your life will be a lot easier if you hire a personal tax accountant. It’s true that filing your own income taxes saves you money and gives you the opportunity to learn about tax filing. But hiring a personal tax accountant will give you peace of mind, as filing taxes is not as straightforward as it might seem, and you might miss something that a trained eye won’t.
Here are the top 4 reasons why you should hire a personal tax accountant:
1. Complying with legal standards
When filing taxes, there are legal standards you must meet, or you will be penalized or fined. Accounting professionals have experience and knowledge that you can’t easily access, as you’ll have to read about them while they are savvy on all the rules and regulations that must be met.
Before you file your taxes, a personal tax accountant will ask you several questions to make sure you are complying with the law. They will make sure you don’t make mistakes that end up costing you money, i.e. penalties or fines by the CRA.
2. It saves you time
Filing taxes is a process that requires time if it’s done correctly. Add to this, the research time you would have to put in if you’re doing this yourself, without a guarantee that you’re not missing anything. Knowing how to do taxes properly and thoroughly takes years of practice and education, which is why personal tax accountants are there for you.
Also, there’s work and other responsibilities. It can be hard to find the time to file your own taxes. A personal tax accountant will be responsible for the whole process, giving you time to focus on your life.
3. They deal with any issues that should arise from your tax filing
If there are any issues when you file your taxes, you want someone extremely knowledgeable at your side. For example, in the case of an audit, only a tax professional with years of experience can help.
CRA audits are based on risk assessment. This means they consider factors like the frequency of mistakes in tax returns or indications that tax obligations have not been complied with. So, in case any question comes up from your tax return, it is your personal tax accountant that will answer anything that might arise. Besides knowing how to answer these questions properly, they are aware of the inconveniences involved and will handle issues appropriately.
4. Help you with tax planning
A personal tax accountant can help you plan for filing taxes the following year. Most people forget they will have to file taxes next year, and a professional won’t let that happen. They will assist you in coming up with a plan that fits your needs so filing taxes becomes something you can look forward to. For example, they give you advice on how to monitor your deductibles, which translates into more money for you at the end of the year. Also, they will make sure you are not overpaying and will help you get more money back in return at the end of the year. This means at the end of the day, a personal tax accountant saves you money and ends up paying for their services.
Alex is fascinated with “understanding” people. It’s actually what drives everything he does. He believes in a thoughtful exploration of how you shape your thoughts, experience of the world.