For a lot of people, tax time is the most stressful time of the year. Although professional accountants can make tax time easier, a lot of people see them as too expensive to use. But are they really?
In reality, accountants will probably end up saving you money, especially if they are good ones. They will be able to draw on their experience to maximise your tax return by maximising your tax deductions and minimising your taxable income. If you used to think that accountants were too expensive to use, then keep reading. Below are just a few of the ways that a decent accountant can help you save money:
They will save you time:
It doesn’t matter whether you only use an accountant once per year, to lodge your tax return, or if you use them throughout the year – in both cases, they will save you a lot of time. Most accountants will be able to work faster than you can when it comes to sorting out your finances. Although they may charge a relatively high hourly rate, they will probably save you a lot more hours than they actually take.
This will free you up to spend more time on the day to day running of your business. It will help lower your stress levels, which can make you more productive in your daily life. Using a decent accountant will indirectly save you money by saving you time.
They will maximise your tax deductions:
Unless you are a practising accountant who works in the tax industry, there is no way that you will be able to keep up with the latest tax rules. Sure, you might be able to lodge a correct tax return which won’t be penalised by the Australian Tax Office (ATO), but will you be able to maximise your tax deductions?
When you use a decent accountant who knows exactly what they are doing, they will probably be able to save you a lot of money by claiming more tax deductions than you ever would. This will reduce your taxable income, and will reduce the amount of tax you have to pay.
They will help you avoid penalties:
If, for some reason, you lodge an incorrect tax return, you may be penalised by the ATO. They may fine you, make you pay back tax owed from past years or penalise you in some other way. When you use an experienced accountant, you will be able to rest easy with the knowledge that your tax return will be lodged correctly. You won’t be up for penalties or fines in the future, and you won’t have to worry about paying more tax than you have to.
Sure, accountants can be expensive. However, the amount of money that they can – potentially – save you will usually more than make up for their fees. If you haven’t used an accountant in the past, consider using one this year – it may work out better than you think!