1) To Ensure You Are Obeying the Current Tax Laws
Tax laws change each year. Some years there can be profound or sweeping changes that can change what and how you report income on your tax return. If your return is filed incorrectly the lament of “I didn’t know I had to do it that way!!!” will fall on deaf ears with the CRA. The Canadian Revenue Agency (CRA) doesn’t accept ignorance of tax law for a defense. So, if you aren’t willing to constantly pay attention, you could miss something important. Protecting your interests by hiring a knowledgeable tax accountant is the best way to ensure that you are paying only what you need to by accessing all available tax benefits and submitting a tax return that will be accepted by CRA.
2) You Owe Back Taxes to the CRA
If you owe any back taxes you really should hire a good tax accountant to help you sort things out. Owing back taxes or being audited by the CRA can be a confusing and frightening experience and it could take months to resolve. Having a good accountant in your corner can lessen the trauma and the time it will take you to get things back on track. Once all is resolved, the accountant can help you to get organized so it doesn’t happen again. Often if you have been audited, CRA will give your tax return file a closer look for a few years. Having an accountant who is familiar with your situation and can speak for you if CRA has questions on future tax returns will save you stress and sleepless nights.
3) Improve Your Credit Rating and Reduce Debt
Sometimes life just gets a little ahead of us and we can find ourselves in debt. Being in debt can also lead to getting a bad credit rating. Just ask anyone who has experienced these situations – they will tell you how much it can impact all areas of your life and how long it really takes to pay off debt or re-establish a good credit rating. A knowledgeable accountant can show you things like how to consolidate debt to make it more manageable, negotiate with creditors and shorten your path back to good financial health.
4) You Are Starting A New Business or Are Self-Employed
If you are self-employed or own your own business, an accountant can help with that too. Hiring an experienced CPA can help you find ways to lower your taxes that you might otherwise miss. There are some big write-offs for the self-employed. Don’t miss out.
If you’re about to start your own business an accountant can help you prepare. With their help, you’ll be able to ensure that all the necessary tax forms are filed correctly and on time.
5) You Own Real Estate or Rentals
Owning several properties is becoming a popular way to grow wealth here in Canada. While this is a great idea, you must ensure that you are also properly managing the revenue and tax side too. You could be losing out on various tax benefits and not maximizing your money. If you own your own home, or own rentals, an accountant can help you manage them. There are some specific tax situations tied to rental properties, and some major benefits. You don’t want to miss out on those.
Your accountant can keep you up-to-date on all new tax laws so that you are submitting all the necessary data and reporting to CRA to ensure that you will not be hit with any penalties come tax time!
6) Saving For Your Kids
If you have kids, you will probably want to contribute money to a RESP (Registered Education Saving Plan) savings account, or even a trust. An accountant can help set all of that up. They have the tools to help you maximize your money as you look toward your family’s future.
7) The Road of Life
Life major events also come with financial issues that will need to be addressed. When you get married, divorced, retire or have children your tax situation changes as well. Your accountant will help you navigate the changes so you are always benefiting and protecting your financial health and security.
So, if you need financial or tax planning advice, accounting, bookkeeping, or tax return services please get in touch. We’d love to help you out. Take a moment and meet the team…
Kelly Melanson, CPA