If you’re wondering whether you should hire an accountant or do your tax return yourself, we’ve taken a look a a few key questions you could ask yourself which may help you decide.
1. Just How Complicated Is Your Tax Return?
The rule of thumb is that the more complicated your tax return, the harder it can be to work out yourself whether you will get an accurate return. Factors such as whether you have multiple income streams, if you are self employed or how many deductions are allowable for a particular industry and your up to date level of knowledge of what deductions you can claim will all come into play. Things start getting more complicated wen you have investments, property, shares or managed funds.
It also pays to be accurate when completing your tax return particularly in relation to business income as it can put you at a higher level of risk from the Australian Tax Office (ATO) perspective.
2. Are You Prepared To Take Full Responsibility For Your Tax Return?
When completing your tax return you need to ensure you are completely confident that you understand all the information you are providing to the ATO. Accountants help minimise risk involved with the ATO and that may mean that they inform you that some of your intended deductions you intend to claim may indeed be a bit risky. It’s better to lodge accurate information that is checked by an accountant that will pass the scrutiny of the ATO than making claims that could get you into hot water.
3. Is It Cost And Time Efficient For You To Hire An Accountant?
Like everything in life, time is money. It’s often best to get an expert to deal with things that you are not an expert in which will free you up to do the things you do best. Not only could you avoid costly mistakes, an accountant will take a lot less time to prepare your return than you would. They also have access to ATO records and are competent with dealing with ATO for any enquiries you may have. What’s more you can claim your visit to the tax agent as a deduction on your next year’s tax return.