Understand Why You Need a Tax Accountant

by Trims55 on April 21, 2011

Paying taxes is like death (unavoidable) and sometimes it can hurt badly when the taxes you have to pay come to a staggering amount. So hiring a good tax accountant is probably one of the most cost effective decisions you’ll ever make as he/she will have the knowledge and expertise to make the paying of your taxes as painless as possible.

Many people do their own books and submit their own tax returns thinking it’s a much cheaper option to do so than hiring a professional accountant when in reality the accountant will know all the legal loopholes where you can save money when submitting your tax return that the average person will have no idea about.

Tax issues can be complicated and you may need the specialist knowledge a tax accountant has at their fingertips to lead you through the maze of complicated documentation that makes up your tax return.

Here are a few questions you should ask yourself when making a decision to hire a tax accountant

  • Do I know what I’m doing when doing my own tax return?
    If not, then it makes sense to bring the professionals in.
  • Are your tax affairs complicated
    If so you’re probably leaving money on the table by not hiring a specialist to take care of them
  • You want to pay as few taxes as possible
    then it makes sense to hire an accountant who knows everything you can claim back and who can give you some sound advice and planning on your tax affairs.
  • You’ve had an unexpected tax bill from the Inland Revenue
    this can be a huge shock, especially if your tax bill is pretty large, there is every possibility your tax accountant can reduce it considerably if not erase it completely, indeed it’s not unknown for them to discover the Inland Revenue actually owes you some money instead!

Where to find a reputable Tax Accountant

Word of mouth is a good way of finding yourself a decent accountant, if you know someone who has an accountant ask them if they can recommend them. If you don’t know anyone then ask at a local business, people are usually happy to recommend someone they find is good at their job.

Don’t be tempted to use someone who seems too good to be true, (they usually are). A good accountant will often give their first session free so you can see whether you will suit each other, don’t be beguiled by wild promises of huge tax refunds or promised safe havens etc for your money because ultimately it’s you who are responsible for your taxes (not your accountant), and if the government have a suspicion you are trying to cheat them then they will investigate you thoroughly!

Finally don’t treat your accountant like a bookkeeper, well you can, but expect to pay for the privilege. If you can’t do your own book keeping you may find it a lot cheaper to employ the services of a local book keeper who can keep your books in order so your accountant can just stick to checking them over and submitting your returns. 

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