It’s rare to find anyone that is 100% confident in their own finances. Rather than sticking your head in the sand, guesstimating or spending hours sorting through your individual or business invoices, receipts, and statements, you can always hire the services of tax accountants to help.
Accountants can assist you to organise your tax, records, budget and financial projections. Just like hiring external aid in any specialist area, there are many arguments for and against. Here is a quick list of pros and cons to consider before outsourcing your accounts:
Con: Tax Accountants aren’t free or easy to find
Accountant invoicing can be complicated. Some charge by the hour, some by services, some by contract. Finding the right kind of accountant offering the most transparent type of payment options can be a real headache.
Hidden fees and services required for your situation can come out of nowhere and blow your budget way over. It’s best to weigh the approximate cost of hiring an accountant with the potential benefit – in both time and dollar values.
Pro: Tax Accountants are experienced and educated
There is so much that goes into submitting your tax return correctly the first time. Managing your financial or individual finances is difficult to do well – and accountants can only help reign in the chaos.
However, by having an experienced accountant overlooking your tax filings each year, you are safeguarded from missing opportunities. Accountants are studied in tax law, and know what deductions you will be eligible for within your situation.
This extra help can save you a headache in the long run – as inaccuracies and omissions can come back to bite should you be audited. By having an accountant by your side, the ATO will contact them directly to query a filing, not you.
Con: Tax Accountants can’t guarantee against mistakes
Accountants are human. No matter the experience or care, mistakes are possible. However, when it comes to tax, small mistakes can have disastrous consequences.
Input errors and miscommunication between yourself, your accountant and the Australian Taxation Office can result in costly penalties, court orders and even incarceration. If mistakes aren’t picked up by yourself or your accountant early, it can result in a terrible experience.
Pro: Tax Accountants can save you time and money
By utilising the expertise of a tax accountant, you can ensure you’re getting everything you’re eligible for. This includes deductions and tax opportunities you may otherwise overlook.
By having an ongoing accountant for your business, you have a specialist overlooking your expenses each month. This enables you to streamline your expenses and notice where you may be overspending.
When tax time comes around, it also enables you to ensure your business is running smoothly while they take care of your tax obligations. This can make a huge difference in your business expenditure, development and strategy.
Cons: Tax Accountants don’t chase you – you chase them
Sometimes hiring someone to do a job can be frustrating. Miscommunication is an issue, especially when you’re time poor. Accountants are inundated with client work between June and October, right when you need them.
It can feel like you can’t get a hold of them, or that they’re ignoring your requests or emails. While this is likely not the case, the stress of feeling ignored can be detrimental to your productivity in this time – especially if you’re running a business too. Having a trusted accountant is the only solution to this one!
Pro: Tax Accountants can do so much more than just your return
You don’t just benefit from an accountant during your tax return. An accountant can help you to balance your books, maximise tax offsets, organise budgeting, and offer great advice on your business structure. They can also help you process the closure or sale of your business. This expertise can make a huge difference in both your stress levels and financial results each year.
Here at Online Tax Return, we’re here year-round. We are Australia’s leading online tax service, and specialise in quick and easy tax returns. Our team of registered tax accountants work hard to get you the most out of your tax return every time. If you’re ready to get your finances in order, contact us today!
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice.