When it’s time to do your taxes, you must be ready to do them quickly and correctly. Keeping track of all the receipts and bills can feel like a full-time job itself. But that’s not the whole story! You’ll also need to make sure you claim all the deductibles you can. That’s a lot to keep track of, so it’s often best to consider using tax preparation services.
They can help you fill out your tax forms and give you all the important information you need to avoid extra fees and problems. Here are some things to know if you are looking for a great tax advisor this year.
1. Why You Require a Tax Advisor
The CRA is one of Canada’s most strict government agencies, so you don’t want to upset them. They will find a way to get what is rightfully theirs. Your tax advisor can help you figure out how to deal with tax problems and check the terms, conditions, and taxes you owe to ensure they are correct.
They can also explain tax laws that are hard to understand and help you find proof and documents for your tax returns. This is important if you have more than one income source or own a business or property because you could lose track of this information, leading to late fees and other legal problems.
2. Consider Enrolled Tax Agents
You need to ensure that the tax advisor you hire is an expert at what they do, so look at each candidate’s professional credentials and portfolio to see what they’ve done in the past. Enrolled tax agents have licenses from the federal government and are approved by the Canada Revenue Agency to look out for their client’s best interests. They help both regular people and businesses who require tax preparation services.
3. Look Into Certified Public Accounts
Even though certified public accountants may not be as skilled in taxes as enrolled agents, they know enough about Canada tax forms to help you with tax issues and advise you. A CPA has to take a 150-hour course in addition to graduating from an accounting school or a related field. This is to make sure that they know everything there is to know about accounting.
Employers know that an accountant with a CPA license has gone through years of training and study to become a professional in the field of finance. Most tax advisors are enrolled agents or certified public accountants, so these are the best credentials for judging a tax advisor’s skills.
4. Finding the Right Tax Advisor
Now that you know what qualifications you want let’s talk about where you can find an accountant who meets all your requirements. Websites run by the government have information about all government-licensed agents, such as CPAs and enrolled agents. So, that’s an excellent place to start!
The National Association of Enrolled Agents has a database where you can find an enrolled agent, and the Boards of Accountancy has a database where you can find a CPA. In the accountant’s profile, you can find out about their work history and any other services they provide. If you wish to find a tax advisor, you might want to start your search with these sites.
5. Getting the Most Out of Your Tax Advisor
When you want to start working with a tax advisor, it’s important to know what your goals are and what tax problems you need to solve. This will save you time, which is important because most professionals charge by the hour.
You’ll need to bring your financial statements and proof that you paid your taxes so the advisor knows precisely what they need to work on. Make sure you know as much as possible about the basics of deductibles and tax returns so that the tax advisor doesn’t have to waste time defining terms and giving you other basic information.
