In Australia, tax time is accompanied by a mix of challenges, anticipation, and anxiety. Many business owners and individuals wonder if getting help from a tax accountant could help them increase their tax returns. This is the most common question: Do you get more tax back if you use an accountant? In this blog post, we’ll explore how tax accountants can help with your tax return and whether their accounting services help you get more money back in your pocket.
What does a tax professional do?
Tax professionals specialise in tax laws and regulations. Their expertise covers capital gains, income tax, GST, and other tax obligations for businesses and individuals. These professionals stay up to date with the latest tax changes, ensuring your returns comply with ATO requirements while exploring all legal ways to reduce your taxable income. The primary roles of tax professionals include:
- Preparing and filing accurate tax returns
- Finding potential ways to claim deductions and tax offsets
- Planning tax strategies to reduce liabilities
- Representing clients when dealing with the ATO if an audit occurs.
By using their specialised knowledge, tax professionals help you navigate complex tax systems and deadlines, minimising the chance of mistakes and potential penalties.
How do tax professionals help you get more tax back?
The main benefits of using and paying a tax professional are their ability to address potential tax deductions and credits you might avoid. Tax returns can be complex to handle, with complicated rules about what is considered a deductible expense—for instance, work-related travel. Self-education costs, or donations to registered charities, may be deductible if you know how to claim them in the right way. Tax accountants are well aware of these nuances and will ask the right questions to find potential claims relevant to your financial and personal circumstances.
Additionally, they also ensure you maintain proper documentation to support your claim, minimising the risk of audit adjustments or fines. To support your claim, you must have accurate records, which can be prepared by a small business bookkeeper.
Additionally, tax professionals can suggest tax-effective investments or structuring your business operations to optimise tax results. This effective approach goes beyond completing a simple tax return, it’s about ongoing financial management of your financial affairs with tax efficiency.
Can you claim a tax deduction on tax agent fees?
Many of you may be wondering: Can you claim tax agent fees? You are allowed to claim a deduction for the cost of managing tax affairs, such as the expense of filing through a registered tax agent.
When should you engage a tax professional?
You may feel like you can handle your tax affairs on your own, but at some point, you may need help from a professional tax accountant, who can benefit you in many ways. However, you must consider taking help from a tax professional when:
- You receive income from multiple sources
- You have rental properties or run a business
- You have recent significant changes in your life (e.g. children, marriage, selling or buying property)
- You want to optimise your tax position
- You have had audits or complications in previous years.
In these situations, it’s essential to get professional advice from a tax accountant to increase your tax return potential.
Should you pay an accountant for tax help?
A common question is whether you should pay an accountant or hire an accountant for tax help. Fees vary based on the complexity of your tax return and the experience of an accountant, but many individuals and business owners find that the increased refund and tax savings are easily achieved.
The expertise and efficiency of a tax professional can save you money, far beyond what you could claim with a DIY return. Plus, they reduce mistakes that could result in fines, possibly saving you extra costs and stress. Keep in mind that seeking help from a tax accountant not just helps in a bigger tax return but also in strategic tax planning that protects you long-term.
Conclusion
Professional tax accountants bring professional expertise, a strategic approach, and updated knowledge on tax laws, which results in increased refunds. If you want to increase your tax return, getting help from Reliable Melbourne Accountants is a smart move.