i. Handle it yourself.
ii. Hire a tax accountant.
Let’s resolve this basic dilemma of every taxpayer together by reading through the article.
When is it appropriate to file taxes yourself in Canada?
The foremost factor to consider is whether you have enough time and knowledge to file your tax return. If the answer is yes, then in the first place move on with preparing a tax return yourself. Also if you have a simple tax situation or you have a single source of income and no complex investment portfolio then filing taxes on your own is worth it. If you are unsure about the tax stuff you can contact an accounting firm to get started with your taxes.
Again doing your taxes will save you money, you will have to pay less for a software package than to hire a qualified tax professional. The Canada Revenue Agency (CRA) has a handy list of free tax software that is certified to work with its NETFILE program for filing electronically. In addition, there are also free tax clinics to help Canadians with modest incomes and a simple tax situation. You can find a checklist of documents, a concise easy-to-use guide, and tax forms on CRA to assist the tax filers.
If you have a complicated tax scenario and you feel like you don’t understand the tax implications of your financial activities, it's time to get a tax professional on board. The incredible complexity of the tax system mostly overwhelms people so it’s worth hiring a tax accountant who can save you not only time and stress but also money. Tax accountants have plenty of experience navigating the multiplex world of taxes which means you don’t have to take stress about navigating that complexity yourself.
There is no doubt in adopting a “does it yourself” approach towards tax filing can save you the fees of a tax accountant. However, if you have a complex income portfolio then making mistakes on your tax forms could be detrimental to your tax return and should be avoided at all costs.
Tax accountants have their fingers on the pulse of changing trends and laws of the tax world. Tax laws change and evolve frequently hence if you don’t consider this constant state of flux you might end up making mistakes on your taxes and missing out on credits or deductions you might be eligible for. It’s your tax accountant's job to file your tax return considering the latest developments in the tax world with the most up-to-date information.
Clearly, there is ample justification to hire a tax accountant to do your taxes. But the question here is ‘How exactly do you do that?
Before you hire a tax professional you must consider some key traits of a good tax accountant.
Ensure the professional is specialized in taxes and holds a grip on recent or upcoming changes to the tax landscape. An experienced tax accountant will bring more expertise to the table which can make your taxes done, an easier and less stressful experience. The accountant must be a bookkeeper also.
A tax accountant must be keen to dig into your financials to understand your business. Tax consultancy demands customized service, a one-size-fits-all approach will not be appropriate to apply.
Keen attention to detail is imperative as there is a lot to keep track of. There is information to gather, forms to fill out deadlines to meet…a need to organize the influx of information.
The clarity in communication is vital for tax consultancy. It requires fostering open communication, keeping the client informed about what’s going on with his taxes, and being available to answer any queries client might have about the process.
Check for the audit protection service. Although the experienced tax accountant will be an armor against the CRA audit, to put it differently. Still if due to any circumstances audit is inevitable then the tax expert shall be knowledgeable enough to defend your rights. Specifically, be able to breeze you through the audit easily and keep more of your hard-earned money.
Once you figure out that your tax needs are to be supported by a competent tax accountant and you understand the characteristics of a professional. Who can do this for you the third question that arises
“How to find a good tax accountant?”
Narrow down the pool of potential tax accountants near you by searching through the following mediums
1. Referrals,
2. Online reviews,
3. List of tax accountants at professional networks,
4. List of tax practitioners at the state board of accountancy
Verify the credentials of the prospective Tax Accountant Toronto. If you got the tax preparers' names from the state board of accountancy, their credentials are most likely legitimate.
There are different categories of tax professionals. Figure out the best tax professional for you and your business.
Interview prospective tax accountants.
Ask for a price quote to make sure that the fees are in line with your budget.
In other words never sign a tax return before checking its accuracy, no matter who prepares your tax return; you are ultimately responsible for its contents.
Take enough time to hire a reputable tax expert considering all the guidelines mentioned in this article. The objective of hiring a tax professional is to make tax filing less stressful. Save time, and get some extra spending money from return.
If you are looking for a professional Tax Accountant in Toronto to file your personal or corporate taxes. In that case, feel free to reach out to Filing Taxes at 416-479-8532. Schedule your free 30-Min non-obligation tax preparation appointment with us and take the first step towards proper management of your finances. Our professional personal tax accountants will make sure to get you the maximum tax refund on your personal tax return.
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