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Every Canadian citizen has the responsibility to pay taxes. Most individuals often have little trouble with this responsibility, as not everyone owns multiple income or expense streams.
However, if you own a small business or find yourself overwhelmed with receipts and invoices, a tax professional could help.
A personal accountant can be beneficial during tax season. Still, hiring one is a significant investment. You can examine the pros and cons of hiring a personal accountant below.
Advantages of a Personal Accountant
A quick Google search of “best tax accountants near me” will likely yield many results. Being part of Toronto, Etobicoke has sprawling industrial and commercial areas where you can find professionals for your needs.
If you’re planning to hire a personal accountant, you can expect the following advantages:
Saves time
Thorough accounting requires you to track and accomplish various tasks, such as bookkeeping, financial goal-setting, and expense tracking. These tasks are crucial for running a business or managing an estate.
Of course, you can do them yourself, but they can take up a significant amount of your time. An accountant can take them off your hands and allow you to focus on other things.
Ensures accuracy
An experienced bookkeeper has the experience to ensure that your tax forms and returns are filled out accurately and completely.
Accuracy is even more critical when you’re running a business. An accountant or bookkeeper can record each transaction to ensure that you have an accurate view of your financial status.
Helps save on tax money
Business taxes can be challenging, especially when you’re not as experienced with the subject. An accountant can guide you and help you do business in a tax-efficient manner.
They can help you with the following business practices:
- Knowing what to claim as business expenses
- Understanding sales tax
- Awareness of tax deductions
Aside from business purposes, an accountant can also help individuals understand the nuances of personal income tax. They can also offer advice on how individuals manage their taxes and educate them on amounts that need not be taxed.
Offers financial advice
You can find general tax advice anywhere online. Many experts readily share their knowledge and guidance through various publications.
However, a personal accountant is perfect for the job if you need advice on your particular situation. They can analyze your current situation and offer detailed advice on your best course of action.
Hiring a personal accountant can benefit individuals and businesses that want to improve their financial standing. They can offer advice on complicated debt situations or purchasing priorities.
The Cons of Hiring a Personal Accountant
Although a personal accountant can offer valuable services and advice, hiring one may not be for everyone. Below are some common disadvantages that might deter you from hiring an accountant.
Costly fees
An accountant can do many things, and they will charge accordingly. Depending on the type of task you want them to do, an accountant could charge from tens to hundreds of dollars an hour. Others could also charge per task.
You can talk to various accountants and firms to compare rates and find the best one for your needs. Still, it would be best to consider whether hiring an accountant would be worth the cost.
Possibility of human error
An accountant can vastly improve the accuracy of your financial documents. Still, no matter how much training or experience they have, they can make mistakes.
To remedy this, you can check their work or schedule a meeting to review their work together.
Disclosure of personal information
Financial information can be highly sensitive. You need a degree of trust that the information you share with your accountant doesn’t fall into the wrong hands.
Accountants are lawfully required to keep client information confidential. You can also insist on using encrypted drives and storage platforms to ensure security.
Tax returns and other financial matters can be challenging for the layperson. Working with an expert like an accountant can help financial processes run more smoothly. However, hiring one can be expensive.
Understanding the pros and cons of getting professional accounting services can help you make the best decision.
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