Every tax time brings around the age-old question, “should I hire a tax accountant or do my own tax?” With 74% of small businesses employing a tax return professional, the answer is clear. People are flocking to professionals for financial assistance. With less stress, greater accuracy and optimised refunds, we understand why so many Australians are using tax agents.
Now you’re probably wondering, does everyone need a tax agent? There’s no definitive answer, but if you are an individual with a simple income stream, lodging your tax return might be straightforward enough for you to do yourself. If on the other hand, you loathe doing taxes, hiring a professional tax agent would complete that burden for you.
Even if you can withstand filing your tax, the process can still be complex, particularly if you have a more complicated financial situation. However, if you’re a business owner, own a rental property, or are someone with a complex income stream, like someone who has several jobs, using a tax agent is worth it. For these individuals, Sitting down with an accountant or tax agent is hugely beneficial as the right advice can save you time, stress and fines to the ATO.
The Benefits of Hiring a Tax Agent
If you’re wondering whether a tax agent can aid you, the team at Shoebox Books will delve into the numerous benefits you could reap from the help of a professional.
1. Minimised stress
This is arguably the most rewarding benefit of hiring a tax agent. Less stress. 38% of Australians experienced financial stress in the June 2020 quarter. Stress wreaks havoc on our health. So why not reduce some of that with the help of a finance professional.
When you take tax into your own hands, the responsibility falls on you. For some, taking on financial tasks is stress preferably avoided. This is where a tax agent can be one of the most significant advantages if you want to guarantee peace of mind. In addition, choosing to lodge through a tax agent ensures you’re compliant with tax laws. So you can rest easy knowing your return has been accurately prepared.
2. Save on time
Nothing beats the convenience of hiring a professional and getting your accounting job done right the first time. Although there are many online tax tools available for you to use, there’s something easier about letting a professional take the reins on your tax. Tackling the tax return head-on might seem like a good idea to begin with, but DIY tax returns aren’t always as straightforward as we’d assume. Typically an appointment with a tax return would only take an hour, in which your agent would ask you a series of questions and review your documentation with the aim to achieve the greatest result.
It may seem like doing your own tax would be quicker with less time spent travelling and finding and presenting your financial documentation for evaluation. An easy answer, so we think. However, for most people, this isn’t the case. A DIY tax return requires time for you to collate your information, figure out your deductions and double-check everything to make sure you haven’t made any small but costly mistakes. In the end, the process takes much longer than we imagined and more than meeting with the tax agent.
If you go to a professional tax agent, all you need to worry about is to come prepared with the proper documents, and everything else is taken care of. People who haven’t completed a tax return by themselves before can find it challenging and time-consuming. With the help of a tax professional to take the responsibility of managing your tax returns, you can concentrate on the growth of your business.
3. Avoid errors
As most people are naturally novices in managing their taxes, there is a high probability that you may commit some common mistakes here and there. Add having a family and business to run into the mix or the inexperience of never conducting your own tax return, and the chances of mistakes occurring increases. In addition, if you’re constantly on the go, you may not be capable of devoting adequate attention specifically to your taxes.
You can avoid underestimating these mistakes by hiring a professional tax agent who will take care of your taxes. As tax professionals, they have a keen eye and are effective in completing taxes without making mistakes. But, unfortunately, even a tiny innocent mistake can land you in hot water with the ATO, as well as a fine, interest, or penalties. So sometimes it’s best to visit a professional to ensure you can avoid any costly mistakes.
4. Tax regulations are complied with
Can you confidently say you are well-versed and up to date with current Australian tax laws? If you aren’t in the accounting industry, no one even expects you to be proficient in tax laws and regulations because that is not your area of expertise! To add insult to injury, Australian tax laws are complex and continuously changing, making it challenging to keep up with.
Without knowledge of the current tax regulations, you could accidentally violate these regulations. If you want the assurance that your tax return is abiding by tax regulations, it’s the safest option to contact a tax professional. As tax professionals, we have to be well versed and up to date on all the current and existing finance laws.
5. To maximise tax returns
A tax agent won’t only save you time, money and stress, but they can also maximise your returns. A tax agent knows exactly what taxable income they can claim as deductions. That office chair you bought to improve your home office environment? It’s tax-deductible. If someone is unfamiliar with how tax returns operate, it’s easy to miss the tax-deductible opportunities. Sitting down one on one with a tax agent, you’ll even begin to learn a thing or two about what other things you can claim. Their expert pieces of advice are invaluable and can play a substantial role in making sure you maximise your tax return.
Finding a Tax Agent Near You
Without any referrals, it’s hard to know who to trust with your tax. Having a tax return agent is like any other business relationship. You deserve access to reputable and experienced tax agent services. The tax professionals at Shoebox Books can help you find the perfect match.
To find your tax agent or learn more about our financial services, contact our friendly team today. If you’ve been wondering how else you can optimise your finances during tax time, Shoebox Books have covered without top tips on how to reduce your tax bill.