For most businesses as well as individuals, the tax season usually brings with it a lot of anxiety. This is because they have to appropriately and accurately file all their tax reports as a way to assure the government of their accountability to paying taxes. Business taxes are usually more complex to understand, account for and file than personal taxes. As a result, most people hire business tax accountants without flinching, in order to take care of all these for them. When it comes to personal taxes however, most people usually feel like they can do it on their own.
The misconception on hiring a personal tax accountant is usually that you hire and pay someone else to do for you something that you can do yourself. This is however not true, particularly for those who are self-employed. This is because there are certain complexities that you wouldnt understand as an individual that a personal tax accountant would. There are several deductions, levies and waivers that you might be entitled to which you would not know about but a personal tax accountant would. Taking advantage of these can save you a lot of money. While hiring a personal tax accountant means you have to pay them, which is an extra expense, the benefits they bring to you might outweigh what you would spend on the accountant. The following are some of the reasons why you need a accountant to manage your tax:
You are assured of maximum accountability – A personal tax accountant will follow all the necessary rules and guidelines set up by tax regulation authorities to the letter while filing your tax. As a result, you are assured of no loopholes in your tax activity. Therefore, if you were audited, you will be found to be fully accountable for your taxes and avoid all the hefty penalties they charge people who are found guilty of overlooking their finances.
You avoid anxiety during audits – Having your tax returns audited is usually a huge source of anxiety for both individuals and businesses. However, when you have a personal tax accountant working with you, they ensure correct documentation and account for all your taxes. They can argue for you with the auditors should any loopholes be found in your tax bill. As a result, they save you from a lot of unnecessary anxiety.
They maximise your deductions – A personal tax accountant is usually aware of all the deductions, waivers and levies you are entitled to and will take advantage of them for you. These can usually range from waivered land rates, to small purchases that save you from paying VAT. Your personal tax accountant would identify all of them very fast and factor them into your tax statement. These deductions usually add up to a very large amount as a result, they save you a lot of money that you didnt even know you could save.
These are some of the ways in which you would benefit from a personal tax accountant. It is important have to be very careful when choosing one to work with because not all of them are good at what they do. You must therefore conduct appropriate research on the conduct, years of experience and expertise of each one before settling for the one that would youre your requirements.