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Top Reasons to Hire a Tax Professional Instead of Doing it Yourself

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When filing taxes you might wonder if it is appropriate to do it yourself or hire a professional to help in the process. In order to make an informed choice, it is important to understand what is entailed in the entire tax filing process entails. It is by doing this you understand how complex the process is and realize that with your limited lack of professional skill and knowledge, you might not do it in the right wamight open yourself up to errorsy. Therefore, the best option you have is to hire a professional. Here are the top reasons you should hire a professional and not do it yourself.

Benefits to Choosing a Tax Professional

Why should you choose a tax professional instead of doing your taxes yourself this year?

Comply with set legal standards

There are certain legal standards you must meet when filing taxes. The professionals are experienced and have knowledge on all the tax rules and regulations you should meet. Before filing your taxes, the professional will ask you several questions to ensure you are complying with the laid down laws. They help ensure you do not make mistakes that might end up being costly for you in terms of penalties and fines by the tax authorities.

Focus on your business

Tax filing is a process that requires a lot of time to be done in the correct way. If you try to do it yourself, it means you may waste a lot of time. Since you do not have the right knowledge, you might also get stressed, thus you do not give your other business tasks the required attention. When you hire a professional, you save yourself all these hassles since they take full responsibility of the entire process. They have the knowledge on how to file your tax fast and in an efficient time. Thus, you will be able to focus more on other profitable tasks in your business.

Have the right tax knowledge

Filing tax involves a lot of issues that require to be handled by someone with rich knowledge in this field. No one else can do it better than a tax professional with several years of experience in this area. They know all the nuisances involved and will handle all issues that arise amicably. In case there is a question that arises on your return, they will deal with it in the right manner. They will be responsible for answering all questions that might occur during audit.

Assist in business planning

A tax professional can assist you in planning for the following year. Most people have a tendency of filing tax and forgetting that they need to do it the following year. With a tax professional, this does not happen. They will help come up with a plan that works perfectly for you. They give advice on how to monitor things such as donations, so as you just pay what you can account for. In addition to this, they also ensure you pay the right amount, so you avoid overpaying. At the end of the year, they will help you get more money in the process.

How to Choose a Tax Professional

Once you have decided to work with a tax professional instead of filing taxes yourself, you have the daunting task of choosing from the dozens or hundreds of options available. How can you choose the most suitable tax expert for your needs?

When looking for a tax professional to prepare and file your taxes in Canada, there are a few specific things you should look for and consider.

  • How long they have been practicing

    While not the only indicator of skill, looking for a tax filing firm with an experienced team or working with a tax filing individual with many years under their belt can give your filing more accuracy and attention.

  • Are they reputable and licensed?

    Are they certified CPAs with credentials and designations? If not, they may not be the best choice for tax filing.

  • How well they understand your needs

    Some tax experts and advisors focus only on small business, or personal taxes, or large corporations. Does this professional specialize in your unique situation?

  • Clear communication

    Do they return your emails and answer your phone calls promptly? Are they available to meet and discuss your accounts regularly? Some tax professionals simply show up at tax filing time, provide little information, and then disappear again. Work with someone who can explain details as needed to you - and enjoys doing it!

  • Be cautious of those guaranteeing high returns

    Most skilled tax filing professionals are able to get you a more effective, often better, return than when you file yourself. However, any individual that guarantees a high return may be trying to manipulate figures or cutting important corners.

Risks of Filing Your Own Taxes

Even for single individuals with one income stream and seemingly uncomplicated tax filing, there are risks associated with preparing your own tax documents.

Small errors can be costly

Whether you’re a business owner, a freelancer, or an individual, it is extremely easy to miss one important document that can have severe tax consequences. Forgetting about an RRSP account, missing an investment transfer, or simply making a data entry error on your income or expenses can lead to reassessments, audits, and hefty penalties from the CRA.

On the other hand, something you may not think can be claimed as a business expense, or a tax credit you may not be aware you qualify for, can lead to you missing hundreds or thousands of dollars in a tax return.

Situations are often more complex than we think

You may think your tax situation is straightforward, but there are dozens of tax credits, expense claims, personal factors and business factors involved in even the most simple tax return. A professional tax accountant can ensure nothing is missed and your return is filed accurately to get you the best return.

Lifestyle changes can catch you off guard

We like to think we’re always prepared, but sometimes things come at us sideways. Things like having children, buying or selling a house, going back to school, withdrawing investments, or getting divorced can often happen quicker than we think. These are extremely important for tax purposes and a tax professional will ensure that any and all of the changes you experienced over the last year are reflected in your tax filing.

Tax software doesn’t tell the full story

Inputting your own numbers and earnings into a tax software system can get the job done, but it does not tell the full story. What are the goals you’re working towards with these numbers? Is there room for improvement? What do these numbers mean?

Working with a tax professional gives you a chance to reflect on and update your financial goals each year to better suit your changing lifestyle.

Work With the Tax Professionals at Accountor CPA

The bottom line: Bottom line: Yyou should only entrust your tax filing to an experienced and reputable professional due to the complexity and confidentiality involved. Why take the risks of tax preparation and filing yourself? Work with a certified tax professional to make the most out of your return and meet your legal obligations.

The team of qualified experts at Accountor CPA has years of experience with filing taxes for small businesses, SMEs, large corporations, freelancers, individuals, and families. Contact us today for a free consultation and learn how you can gain all the benefits of working with a skilled tax professional and none of the risks.

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