DIY vs. Hiring a Professional Accountant

Taxpayers in Canada already realise they pay extremely high taxes. As a result, many individuals and companies try to do their own accounting and reporting. This has, more often than not, proven to be a huge error in judgement. A seemingly tiny mistake can end up costing a great deal of money and frustration. If you are among those toying with the idea of DIY vs. hiring a professional accountant, the following information may prove to be useful in making your decision.

DIY-vs-Hiring-a-Professional-Accountant

Proper Deductions Can Save Money

Those looking to save money by doing their own taxes are in for a big surprise when they find that they owe more money than they had imagined. There are a great number of allowable deductions in the Canadian Income Tax Act that the average person or company director just might be unaware of. These deductions serve to reduce the amount of tax owed, so how futile is it to try to save money but end up owing more?

Conformity to Canadian Law – Reporting Wages

One of the biggest areas of confusion among business owners is in knowing exactly who must report wages. Canadians and non-residents alike must report income and are subject to income and social security taxes. However, there may be provisions wherein a non-resident may be exempt because of what is called a totalisation agreement with his or her home country. Both the employer and employee may be subject to taxes, and ignorance of the law is no excuse. On the flip side, consider how horrible it would be for an alien and his or her employer to pay taxes when they weren’t due?

Current Focus on Financial Literacy

With the state of the economy, much attention is being given to individuals and businesses achieving financial literacy. Many are struggling to keep their heads above water and never has there been a greater need to learn ways to earn and save money. Trying a do-it-yourself approach is hit and miss at best. A chartered accountant has an ethical obligation to help you understand your financial situation so that your circumstances can improve.

Regulating Chartered Accountants

It is important to have complete confidence in your accountant since that person will be privy to much personal information. Therefore, make sure that the person you hire is a standing member of a professional body of chartered accountants. These are governed by very strict codes of conduct and after having been made a member of that organisation, they are governed accordingly. An accountant should be above reproach and continually keeping up with laws, rules and regulations.

You could try a DIY approach to your finances, but do you have confidence that you can stay compliant with Canadian laws? Are you certain there may not be a better way to save money, or grow your income for that matter? When it comes to money, few of us have much to spare. Your accountant is there to help you preserve what you have and hopefully make more along the way.