how to know if you need to see an accountant this end of financial year

Tax time tends to go one of two ways: either you’ve got your ducks in a row, or your ducks are on the run, nowhere to be seen. If it’s the latter, then welcome – we can always do with a few more chums in the scary tax club. However, like so many things that involve managing money, tax is only as scary as you let it be. The biggest way to strip away that fear is to understand it better – or, get yourself an accountant. Below, we weigh up whether an accountant is worth the hype or if you’re better off riding solo.

LET’S TALK ABOUT TAX A good place to start in working out if you need to hire an accountant to do your taxes is to think about the complexity of your income. Basically, the more complicated your tax return is, the more likely you’ll need to get someone to help you do it. Complicated doesn’t always mean that you’re paying a large amount of tax – it could mean that you have multiple income streams, investments, debts, or anything else in that vein. Even if your tax return is only slightly complicated, there are a range of nifty resources on the Australian Tax Office’s website that can help you through the process – from working out deductions you can claim to figuring out what income you need to declare. If these don’t sound too daunting, it’s a good idea to have a look over them first to see if you can complete your tax return by yourself.

SET YOURSELF FREE One of the best reasons to see an accountant at tax time – especially if you’re a freelancer – is to save yourself the anxiety. Money is stressful enough as it is without all of the rules, regulations and incomprehensible jargon. Understanding how much income you need to set aside and setting up PAYG installments is vital as a freelancer, as is knowing whether to register for GST. An accountant can help you manage all of these things and, crucially, help you meet ATO deadlines and avoid fines. As a freelancer, there can also be myriad expenses you can claim that you might not know about – this is when an accountant can unlock returns you weren’t expecting. Plus, you can also claim your accounting fees as a deduction in your tax return.

SMALL-BIZ TIPS Even if you’re relatively across your finances and how tax time works, it’s a good idea to engage an accountant from the get-go of starting a business. Having a trusted accountant isn’t just about tidying up your taxes or ensuring you’re following the rules, it’s also about working out how your business – and you – can best succeed going forward. Consulting a professional accountant from the start will lessen the load of stress when it comes to tax time – meaning you can start planning for the next year without worrying about the previous one. This is especially helpful if your small biz profits off creativity – the less time spent thinking about the financial side of things means more time spent being creative. Another reason to engage an accountant is to help you through the murky waters of debt. While debt is a common part of running any small business, it’s a good idea to have an expert in your corner to help you stay on top of it.

TAX ADVICE FOR NIX Aside from the ATO’s nifty online resources, there are also other ways to consult an expert without dropping a penny. Free tax clinics across Australia can assist eligible taxpayers with a plethora of services – from disputing an ATO decision to helping you lodge a return. The ATO also offers a free online Tax Help program to help lodge tax returns for eligible people earning under $70,000.

At the end of the day, if you feel confident in what you’re doing, then gather up your tools and be on your merry way. If you’re a little unsure, have a good look over the online resources and compare your tax literacy with your situation. The more you know, the better – but sometimes it pays to leave it up to the experts.

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