Were you disappointed with this years’ tax refund? Were you expecting to receive more? Do you feel like your tax accountant didn’t work hard enough to get you the best possible refund? If you answered yes to any of these questions, then now’s the time to consider hiring or switching tax accountants.
A good tax accountant can make a substantial difference in terms of your tax refund. And not just for your 2020-2021 tax return, every tax return that they lodge on your behalf. Unless you or your tax accountant is au courant with the current tax regulations, you will likely pay more tax than you need to be and receive a smaller text refund than you’re entitled. This is why you need not just any tax accountant, but a good tax accountant.
At Grow Advisory Group is one such tax accountant. Tax returns are our specialty; We are experts in business tax returns and individual tax returns and strive to get you the maximum refund you are entitled.
To maximise your 2020-2021 tax refund, continuing reading this article. Drawing from my tax experience and expertise, I have compiled this ultimate guide to choosing a tax accountant. Follow these suggestions, and you’re sure to be thrilled with next years’ tax refund.
Table of Contents
- What is a tax accountant?
- Considerations for hiring a Tax Accountant
- Questions to ask a Tax Accountant
- Mistakes to avoid when hiring a Tax Accountant
What is a tax accountant?
Before we get into how to choose a tax accountant, let’s look at what a tax accountant is.
A tax accountant is a specialist accountant who focuses on preparing, lodging and managing tax statements and tax returns. A tax accountant can also provide tax advice and tax planning services to better structure a business or individual for maximum tax-efficiency.
Tax accountants aren’t essential. You can manage your own tax statements and lodge your own tax returns; however, their expert advice and knowledge of the tax regulations can be very beneficial to both individuals and businesses. They can claim for work-expenses that you may not be aware of to maximise your tax refund.
Considerations for hiring a Tax Accountant
If you’re going to invest in a tax accountant, then it pays to do a little research to ensure you choose the best tax accountant for your needs and/or business.
Is the tax accountant ethical?
It’s one thing to get a massive tax refund, but it’s another thing to get it ethically. It’s vital that you put your trust in a tax accountant that is ethical and has your best interests in mind. Will they maintain your confidentiality? Will they keep you informed and provide sound advice that puts your interests first?
Do they specialise in my business field/Industry?
If you own a business, then it pays to find a tax accountant that has experience in your industry. They will be aware of industry-specific deductions, which, in turn, will ensure you get the maximum refund you are entitled. Likewise, if you are being audited, you will want a tax accountant who is an audit expert.
Grow Advisory Group has tax accountants with a high level of experience in the aged care, automotive, food & agribusiness, healthcare, hospitality, legal services, manufacturing, professional services, pharmacy, property, retail, transport & logistics industries. So, you can rest assured we have the knowledge needed to get you the maximum tax refund for your specific industry.
Do they have the needed experience?
Tax accountants are only human, so there will be some that have more experience and knowledge than others, Some that are better than others. If you have a complex business structure – or have multiple businesses, you’ll want to put your trust in an experienced tax accountant—someone who can offer tax advice to reduce your taxable income and maximise your tax refund.
Are there any red flags?
Be caution of any tax accountant that promise you an instant tax refund or a massive refund before even looking at your financial position.
An “instant tax refund” sounds very enticing, but it probably isn’t the best option. Let me tell you why. Instant tax refunds don’t exist. It’s essentially a short term loan between you and the tax accounting firm, which has to repaid once you receive your actual tax refund from the ATO. This is all well and good, except in the case where the ATO withholds a refund. In which case, you then have to start paying interest on the short term loan.
Questions to ask a Tax Accountant
Don’t be afraid to put a tax accountant on the spot and ask them questions. Their answers will aid your decision-making process. Request a sit-down meeting to discuss your position and how they will approach your situation.
Below is a list of questions you should seek answers to:
- What services do you provide?
- What are your qualifications?
- How do your fees work?
- What kinds of clients do you work with?
- Are you a conservative or more aggressive accountant?
- How do you handle working with multiple entities?
- What is your experience with the [insert your industry] industry?
- What online accounting software do you use/support?
- How do we communicate, and how often will we communicate?
- Will I always deal with you?
- Are you available year-round?
Mistakes to avoid when choosing a Tax Accountant
Choosing a tax accountant takes time and research, but it’s worth it. It can potentially save you thousands of dollars in unnecessary taxes.
Below are a few common mistakes to avoid:
- Don’t hire the first accountant that ranks in Google for ‘tax accountant near me’! This says absolution nothing about their skills, qualifications, experience or ability to get you the best tax refund.
- Don’t hire a tax accountant purely based on low fees. True, it may save you a couple of hundred dollars in accounting fees, but it may cost you thousands in unnecessary taxes.
- Don’t choose an accounting firm that doesn’t assign a specific accountant to manage your account. You want a dedicated accountant that is familiar with you and your business to ensure the best results are achieved.
- Don’t choose a tax accountant that doesn’t have a broad knowledge of the different areas of their sector. They should be able to advise on more general matters and have answers to all your questions.
If you’re looking to get the maximum tax refund on your 2020-2021 tax return, then it may pay to invest in the professional services of a tax accountant. A tax accountant specialises in tax returns and can offer tax advice and planning strategies to make you or your business more tax-efficient.
However, not all tax accountants are the same. Thus, when choosing a tax accountant, there are many things to consider. Things such as whether the accountant is ethical, whether they specialise in your industry, whether they have the required experience to manage your account, and if it sounds too good to be true, it usually is.
Choosing the best tax accountant can only be achieved by putting in a little work. Asking them questions, and avoiding common pitfalls such as choosing based on location, Google search results, or low fees.
By following this guide, you will be able to make the right decision when choosing a tax accountant, and we hope that decision is us, Grow Advisory Group. Contact us today to book a meeting to discuss your tax accounting needs.
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Disclaimer: The information contained in this blog is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from an accountant and/or financial adviser.