Should you take a DIY approach with your taxes?

If you own a very small business, are a sole trader or are a PAYG employee, you may be tempted to handle your tax return on your own. After all, the Government makes this possible with its myTax system. All you have to do is plug in a few numbers… right?

Technically that’s true but unless you have an in-depth understanding of Australia’s tax system as it stands in 2021, you’ll be better off getting help in this area.

Based in Caboolture, Mobbs & Co specialises in tax accounting. Here are seven reasons why we recommend you use our services at tax time.

#1 Doing your own taxes is confusing

You can work your way through myTax but you will hit questions that you’re not sure how to answer. What’s more, there is a lot of groundwork to do first to figure out how much revenue your business has earned and how much has been spent.

Unless you love going back and forth with financial statements, bank accounts and e-forms, you’re better off handing the responsibility to someone who has a lot of experience.

#2 Taxes take time

Do you have a day or two or three to spend working on your tax return?

This chore may take less time if you’re employed or a sole trader but if you work with a professional you can guarantee they will have your taxes done in less time than you would need on your own.

Give yourself a break to focus on work or family by outsourcing this task.

#3 It’s easy to make mistakes

You don’t want to land yourself in hot water because you have completed your taxes incorrectly. There are so many rules about how much you can claim, the type of evidence you need to share and what you have to report.

If you’re a business owner, you need to keep detailed records of your tax return and ensure your taxes are filed on time.

Work with an accountant who stays up to date with Australia’s ever-changing tax legislations and will make sure you are compliant.

#4 Accountants know everything you can claim…

An accountant pays for themselves by knowing exactly what you can claim to minimise your income, right down to the shoes on your feet.

You may not be aware that you can claim your education expenses, your software subscriptions and some of your home internet expenses but your accountant will run you through a list and leave no stone unturned.

#5 …And everything you can’t claim

It’s easy to get carried away with your tax return and add more deductions than you are entitled to or have evidence for.

Your accountant will hold you accountable and if they are honest they won’t allow you to make claims on your tax return without evidence or good reason.

#6 Your accountant can give some perspective

Especially if they specialise in working with small businesses that are similar to yours, your accountant may notice you’re not where you should be in terms of benchmarking. Perhaps your profits are too low in comparison to your revenue or you are spending far more on insurance than your industry peers.

It’s hard to know these things if you have nothing to compare yourself to, so touching base at least once a year with your accountant will give you some clarity on your progress as a business.

#7 Your accountant can simplify your taxes

Doing an annual tax return is a headache but if you break things into quarterly chunks you’ll have less to work through in one go. Working with an accountant, you can put technology in place that makes it much easier to track your income and expenses, and even see at-a-glance who owes you money.

Ready to hand over the stress of getting your taxes right? Talk to the leading tax accountants in Caboolture.

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