7 Reasons to Hire A Tax Preparer

7 Reasons to Hire a Tax PreparerWritten by Jenny Okonkwo

Seven key reasons why owner managed businesses (OMBs) should consider forming a long-term partnering relationship with a dedicated tax preparer instead of “walking-in” to a “shoe-box” accountant for their T1 General return:

1) Incomplete Business Records (half a shoe-box)

BUT ALSO

2) Large, complex transactions
3) Multiple Income Streams
4) Wealth & Risk Management
5) Incorporated businesses
6) Making the deadline
7) Tax Credits

Fundamentally, a discovery process is needed to deal with these complications. Due to periodic changes and updates in regulations, this may also require the leading of time-consuming investigations with software providers and the CRA (for incorporated businesses, a considerably more complex T2 returns process is always necessary).

The reality is that nearly all OMBs have the potential opportunity to “claw back” tax liability by fully accounting for their costs and claiming tax credits. Continuity and consistency can be expected benefits given that these issues almost always span a number of years of tax submissions, past and present. Therefore a “partnering” approach can work well in terms of collaboratively developing practical controls for record-keeping to ease next year’s burden.

Please note that although tax preparers can range from independent consultants trained in T1/T2 form preparation through to professional services CICA-qualified outfits the OMB may need to file the return themselves. Due to this variation in practice, this “learning snack” is a general cross-industry observation offered without liability.

About Jenny Okonkwo

A MESSAGE TO VICE PRESIDENTS IN FINANCE You know how you are continuously frustrated with trying to balance external compliance requirements with supporting the business internally? I solve this. I do this by using my natural talent for detecting and eliminating waste, duplication, inefficiencies. Documenting procedures, streamlining business processes to help define and clarify roles and responsibilities. Automating manual outdated systems, designing and implementing new ways of working, analysing business data to improve decision making. I help companies develop and improve the internal controls over their financial reporting by assisting in the delivery of Sarbanes Oxley (SOX 404) readiness programs. This allows focus to be placed on compliance and knowing that internal business is taken care of, helping to minimize financial risk to maximize commercial opportunity. Even though I am an accountant by trade, I’ll always be a problem solver at heart, which is shown here. I’m always looking for a new problem to solve, so if you’ve got a doozy you need a hand with, feel free to contact me directly at 647 838 9606 or drop me a line at jenny@transform-consulting.ca I have also helped local business entrepreneurs and sole proprietors prepare their voluntary disclosure applications, computerize their manual accounting systems, remove their record-keeping backlogs, automate their processes using both cloud based and desktop accounting solutions, prepare their personal and corporate tax returns. Join my LinkedIn Group now to brainstorm and collaborate from any of these perspectives. Connect with me on Twitter and Linkedin.
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