We know all too well: owning a small business is a big responsibility. Not only do you have to worry about the day-to-day of keeping your business running, but you also need to maintain compliance with all applicable laws and regulations.
One of the most important—and often overlooked—aspects of owning a small business is ensuring your tax accountant is properly handling your taxes. If they aren’t, this can lead to significant problems down the road, including penalties and interest charges from IRD.
The following are some tips to make sure your tax accountant is doing their job properly:
1) Make sure you hire a qualified tax professional.
This may seem obvious, but it’s something far too many business owners overlook. Just because someone calls themselves a “tax professional” or an “accountant” doesn’t mean that they’re actually qualified to prepare your taxes. Before hiring anyone, make sure they have the proper credentials and experience in your industry.
2) Understand what type of services your tax professional should be providing.
Ideally, your tax professional should be more than just someone who prepares and files your taxes—they should also be someone you can rely on for guidance and advice throughout the year.
A good accountant should help you minimise your tax liability by identifying deductions and credits you may be eligible for, and help you structure your affairs to do the same for your taxes. They should also be available year-round in case you have any questions or need assistance.
3) Be wary of anyone who assures you of a refund before looking at your information.
If someone tries to tell you that you’re eligible for a refund before they’ve assessed your information, they’re probably not qualified to prepare your taxes. No one can say for certain whether you’ll receive a refund without first reviewing all your information and material.
4) Review your return before signing it.
Once your return is prepared, make sure to review it thoroughly before signing it. If there are any errors on the return, these could result in penalties or IRD interest charges.
5) Keep good records throughout the year.
Good recordkeeping is essential for ensuring that your accountant has everything they need to prepare an accurate return. Be sure to keep regular and accurate records of all your business’ income, expenses, receipts, etc. This will make it much easier for both you and your accountant come tax time.
You’ve got enough on your plate without having to worry about whether your taxes are being handled correctly, but it’s important to be aware of the potential risks associated with hiring someone unqualified or inexperienced to deal with your financial records. By following the tips above, you can help ensure that your taxes are being handled properly, leaving you one less thing to worry about.
Have any questions about your small business? Do you need assistance with tax, accounting, or bookkeeping? Just sing out and our team will be in touch! These are exciting and challenging times for businesses, so let’s help you get the right advice to move forward.
Your Outside Team
Need a bit of assistance with your business? Contact an Outside Accounting team member today and learn more about our fixed fees. You won’t regret it.
Aside from business consultation, we are business accountants Wellington who offer accounting, bookkeeping, payroll services designed to help you achieve greater financial success.
You can click here to speak to a business, accounting and bookkeeping firm. We will give you a call to know more about your needs. We will explain to you how we can improve your business.
Contact
Address: Level 2, 182 Vivian Street,
Te Aro, Wellington 6011, New Zealand
Mail: PO Box 24-457, Wellington 6142
Phone: 04 889 2975
