Even the most financially astute layperson will benefit from hiring a personal accountant, as they can help you save both time and money, as well as enable you to make the most of your end of financial year tax return. A personal tax accounting professional can be invaluable if you are not sure about what documents or records to keep, if you have questions about the relevant laws and regulations, and if you need advice on your small business, financial planning or other long-term arrangements. Here, in no particular order, are some of the key benefits:
Maximising your tax return
A personal accountant will highlight those expenses that are fully or partially deductible – these include a wide range of expenses, from costs incurred through the running of a home office to business costs spent on the cleaning and maintenance of employees’ uniforms, for example. They will be able to review your personal financial circumstances and signpost you to various tax breaks, in addition to helping you structure your finances so that you can make the most of any available deductions. It could be that you are missing out on tax benefits or have not made the most of your superannuation scheme, or you might have overlooked certain deductible expenses such as health care payments made whilst caring for elderly parents, for instance.
Freeing up your time
If you are someone who finds record keeping a chore, and frequently end up with missing receipts or misfiled bills and other payments, a personal tax accountant will do wonders towards helping you streamline your accounting processes. Once they have reviewed your finances, a good personal accountant will get to know you and your current circumstances, as well as future demands on your income. They can then help you to prepare for the next tax year, thereby saving you time and allowing you to avoid unnecessary worry and stress. This frees you up to focus on other things that matter, such as reviewing your personal portfolio, taking steps to extend it and maximising your earning potential, all of which will be of great benefit to your finances.
Helping you to avoid late return fines
Personal tax accountants are fully clued in on the deadlines and return dates for end of financial year tax returns. They will ensure that all your paperwork and accounts are submitted correctly and at the proper time, which not only eliminates the chance of you incurring a late fee, but also minimises the risk of the ATO carrying out an audit on your finances because they were not properly accounted for. A personal accountant also keeps abreast of the changes in financial regulations, and can advise you on other financial matters, such as if you were looking to diversify your business.