Taxes are complex so relying on a credible tax accountant will make a significant difference. If you’re a business person wanting to make the right decisions on your taxes or you want to make the most deductions as possible, turning to a tax accountant is a smart move. But with so many options available, are there things to consider as you select the one that would work best for you?
A tax accountant does not simply file tax returns. They provide strategic guidance, ensure compliance, and even assist with planning. However, using the wrong accountant can result in expensive errors, lost deductions, or even trouble with the law. That’s why it pays to do your homework before making a choice.
The following are the top five qualifications to consider when selecting a tax accountant.
1. Proper Certification and Credentials of A Tax Accountant
Not all accountants are the same. When employing a tax accountant, ensure they are certified and qualified. In Australia, this typically means:
Certified Public Accountant (CPA) – CPAs have undergone rigorous exams and continuous professional development, and they are equipped to remain up to date with tax law and accounting rules.
Chartered Accountant (CA) – Universally recognided, CAs are highly qualified in taxation law and accounting and offer expert opinions to the public and businesses.
Registered Tax Agent – A tax agent who is registered with the Tax Practitioners Board (TPB) is entitled to prepare and lodge tax returns on behalf of and following tax legislation.
Having these qualifications ensures that your accountant is knowledgeable about tax legislation and current compliance requirements. You should always confirm their registration with the TPB to ensure they are qualified to offer tax services.
2. Industry Experience and Specialisation
An accountant with years of experience with your particular kind of business is a godsend. Taxation and legislation differ from industry to industry, and having someone familiar with the nuances of your line of work engaged will save you money and prevent pitfalls.
For instance:
- If you are in real estate, your accountant will be experienced in capital gains tax, depreciation of property, and negative gearing.
- If you own a small business, they must be familiar with GST, tax offsets for small businesses, and instant asset write-offs.
- If you are a freelancer or contractor, you must be familiar with the home office, equipment, and super contributions deductions.
Industry expertise enables a tax accountant to give you certain advice that accounts for the most amount of tax benefits and reduces liabilities.
3. Latest Knowledge of Tax Legislation
Tax legislation is constantly changing, and outdated advice can cost you money. A good tax accountant keeps up to date with changes in taxation legislation and actively informs you of any changes that may impact your financial affairs.
For instance, recent legislative changes to taxation may affect:
- Superannuation contribution limits
- Instant asset write-off thresholds for businesses
- Capital gains tax exemptions for primary residences
Ensure that your accountant is participating in regular professional education courses. Membership in organisations like CPA Australia or Chartered Accountants Australia and New Zealand (CA ANZ) is usually a reflection of a determination to remain updated in their area of expertise.
An educated tax accountant not only ensures that you are within the law but also assists in maximising new tax-saving possibilities.
4. Careful and Outstanding Analytical Skills
Tax preparation is complex, and an error will result in audits, penalties, or forfeited deductions. Your tax accountant should be very detail-oriented and analytical to identify potential savings and remain current with tax codes.
One of the best tests of their accuracy is asking them how they approach tax planning and audits:
- Do they proactively work to minimise your taxes?
- Are they thorough to examine financial records and double-check for accuracy?
- Can they spot errors or discrepancies that will most likely lead to an ATO audit?
A detail-focused tax accountant will make sure nothing falls through the cracks, saving you money on unnecessary errors.
5. Exceptional Communication and Client Service
A tax accountant is not necessarily a number man or woman but possibly does a little of that too, they need to be someone you trust who tells you about your taxes. The best accountants tell you about tax laws in clear and simple terms, so you will not be left guessing about your money.
Find one who is:
- Responsive – Does he/she call you back on the phone and reply by email promptly?
- Available – Are they prepared to answer your questions, no matter how basic they are?
- Transparent – Do they provide clear explanations when it comes to fees, procedures, and tax planning?
An accountant who will invest time in instructing and guiding you will be more valuable than one who simply fills numbers into a calculator without explaining. They need to be ready to discuss long-term tax planning and provide suggestions that are tailor-made to your objectives.
Other Things to Consider
Aside from these five qualifications most essential, there are a few more items that may assist you in selecting the optimum tax accountant for you:
Reputation and Reviews – Look for reviews and comments on the Internet by past customers. A favorable reputation is an excellent sign of reliability and good service.
Computer and Software Skills – The new tax accountant should be versed in accountancy software like Xero, MYOB, or QuickBooks. This enables easy book-keepingand precise financial reporting.
Fees and Price Plan – Be clear on how the accountant is charging for his/her service. Do they charge by the project, hourly rate, or packages? Knowing the cost beforehand can enable you to plan accordingly.
Final Thoughts: Finding the Right Tax Accountant for You
Selecting a good tax accountant is not necessarily about finding someone who can fill out your tax return but about having a professional who will guide you through the world of tax and assist you in making wise money decisions.
At Max Margin Accountants, we’re proud to offer professional tax advice customised to your particular needs. Our team of certified professionals stays abreast of the latest tax laws to give you the highest fiscal outcomes possible. As a businessman or individual looking for reliable tax assistance, we’re here for you.
From tax compliance to tax planning, we take the lead in making you financially successful. Require a competent tax accountant? Call Max Margin Accountants today and let’s make tax time easy!
