Chartered accountants are considered as the “black belt” in the world of accounting. They can make your financial statements, give you business advisory assistance, estimate your cash flow, and act as your tax agent. Chartered accountants who take the role as a tax agent offer tax services such as preparation of tax returns, tax consultation for businesses, and tax minimisation, among other things.
More often than not, small business owners and self-employed individuals do their own tax returns. This may be because they are more comfortable in doing it by themselves, or because of the costs associated with hiring a tax agent. But since tax-related matters tend to be a bit complicated, you may be overpaying your taxes without realising it. It’s still best to employ a chartered accountant tax agent who will do your tax affairs.
Why a Tax Agent is Good for You (and Your Business)
Tax laws tend to change and get updated. If you manage your own tax affairs, you won’t have an idea where to make the adjustments. It is best for you and your business if you employ a chartered accountant tax agent. While there are additional costs associated with this pursuit, a skillful tax agent can help you save cash. Also, his/her service can be deducted on your tax returns.
Aside from handling your tax affairs, a chartered accountant tax agent can look at your tax planning issues. This entails examining your business’ overall structure and coming up with ways on how you can minimise your tax. For instance, he/she can work out an effective income splitting scheme where the net income of your business will be shared out to another taxpayer who can yield a smaller tax liability.
If you believe you’ve overpaid your tax liabilities in the previous years, a chartered accountant tax agent can look into it. Once it checks out, he/she can start reclaiming the excess tax. More often than not, self-employed individuals who self-assessed their tax returns have the propensity to overlook cases which allow them to reduce their tax liabilities. Having someone in your team who is an expert on these matters will help you better understand the subject.