Paying Someone to do Your Taxes

Every year at this time, I get many people wanting me to do their taxes, but when I quote them a rate (or the Chartered Accountant I work with quotes a rate), the response I sometimes get is 'that's too much', 'you're crazy' or 'I can get it cheaper somewhere else'. I usually end up directing them down the street to the large chain …

Accountants usually have to charge more because of the expenses we incur.

Here's a breakdown of some of the expenses that have to be paid every year:

So, before anything happens our cost is at least $10. When someone offers me $20 or $30 to do a return, I tend to say no …

This doesn't include additional expenses such as:

• Professional Development (required by professional associations).
• Office Rent and Utilities.
• Parking.
• Food & Entertainment – meeting clients for lunch.
• Unpaid AR (yes, some people don't pay.)
• Office Supplies (tax returns require a lot of paper!)

And don't forget the time it takes to do a return – it's not just entering the slips. We also have to collate the final returns, make copies and then meet with the client again to discuss if anything needs to be adjusted or changed, which frequently happens. There's also using our professional judgement to find the best way to minimize taxes payable.

Some people think it's too expensive having an accountant do their taxes, when they can do it themselves for much cheaper. That might be a good idea if you have a simple return. But if things get a bit more complicated, you may want a professional to help you out.

Other Advantages to paying a professional:

• On top of the latest tax changes.
• If you get audited, you'll have someone to go with you.
• Can provide other business services besides taxes.
• Developing a long-term relationship with an accountant is a great way to make sure deductions don't get missed – they'll know your situation better than anyone else; reduced errors, as well
• Times saver if you're lifestyle is busy.

So, if you're financial situation is getting more complex than you can handle or you just want to save yourself some time, paying an accountant may be the ticket.

Photo: x_jamesmorris

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