Accountants and Your Family Business

Accountant Services For First Timers

If you've never had the chance to hire an accountant, but find that you need one now, you are probably aware that accountants can file your taxes. But there are other services that these professionals can provide you that can help ease your financial burden when it comes to taxable income, as well as services that can protect you in the event of an audit. Here are some of the things accountants can do on your behalf.

Audit Services -- Some of the most dreaded words you can hear are that the Tax Office is auditing you. An audit is simply a thorough investigation into your financial documents to confirm that everything you listed on your tax return is correct and that you haven't made a mistake along the way. An accountant is certified to file taxes in such a way as to ensure that all possible audit triggers are handled. The most effective audit protection is to file taxes with documentation so that there are no issues. But in the event that you filed taxes on your own and are now facing an audit, you can hire an accountant to help you with the audit so you know exactly what documentation the Tax Office needs to resolve your case. Many accountants guarantee that if they file your taxes and you are audited, they will refund the cost of doing your taxes, and offer audit services for free.

Tax Planning -- In addition to filing your taxes, accountants can also review your previous tax returns to see what patterns are emerging and how they can best reduce your taxable income. Accountants will often recommend you lower your taxable income by placing some of your money into annuities and retirement programmes. When you shift your money into these types of investments, you 'shelter' that income from the Tax Office, which not only helps you save for the future but also reduces the amount of income on which the Tax Office can request you pay tax. Tax planning also involves projecting your income for the year to see how best to handle a potential increase in taxes if your income is expected to rise.

Bill Paying -- Accountants can also set up a bill-paying system for you so that you are always on time with your debts. They can also ensure that your bank statements match every month and that you are given a monthly tally of your accounts payable versus your accounts receivable, so that you know how much you're spending each month and how much you are earning. The difference between these two figures is your net worth, and if you are trying to increase your net worth, your accountant can determine areas where you can cut your spending.