Your taxes are to be filed and it has to be done in an immaculate fashion. Your budget is at a shoe-string level, and you don't want to spend the money that you used to for hiring a professional chartered tax accountant for the job. Well, a lot of people are now contemplating this option of DIY business accounting and filing of tax returns, courtesy the austerity drive and the recent economic recession.
However, is that wise? Or to put it in more straightforward terms, does the DIY business accounting & tax returns' filing do justice to the merits it claims to its name? Experts, especially veterans working as tax accountants in Sydney and other major cities have replied with a thumping 'NO'.
So why is DIY tax accounting a dangerous line to tread on? Let's discuss some of the points that help professional chartered accountants go one-up on DIY business accounting!
• Using the experience - There is no doubt in the fact that chartered tax accountants will have more experience in delaying with the filing of tax returns and hence will be able to use that as a weapon against cases of overpayment or erroneous records. Also, expert tax accountants in London have a lot of contacts and know people around the government offices and hence can ease out the filing without much red tape or hold-ups.
• Well-versed with the laws and loopholes - Laws and Loopholes are the keys to minimising taxes and optimising the benefits - both to yourself as well as the tax accountant in question. So if you want to get it done on a DIY basis, it will have more money draining out of your pockets as tax returns rather than as savings.
• Bookkeeping and Records-maintaining issues - If you were a mere employee in any firm business accounting for yourself would not be such a big complicated process. However, if you own a business or a firm, keeping a professional tax accountant from London or someplace else is going to be beneficial to you. This is because, with so much of records & financial data to be analysed and logged in, there are vast scopes for errors if an amateur (You!) is assigned that task!
• Plans for the next fiscal year - It maybe a year away, but plans and blueprints for the next fiscal year are always out by the end of the current year. And if you have a chartered accountant looking into it, it may just be a great opportunity to revise the errors you had made and make amends through savings, better tax accounting as well as bookkeeping for future project revenues. Unless you have a great plan, which is practically impossible without a professional chartered tax accountant, you can rest assured that even the best of revenues will be thinned down by piling up taxation and fines.
The focal point of why DIY filing of tax returns is unsafe is because, without prior experience or specialised expertise, the possibility of errors is huge. And when even minor errors can cause you huge financial losses, the consequences of gaping faults in your tax accounting can cost you a fortune that was deservedly yours in the first place!
Should you need immediate tax accounting services, do not hesitate to call Daniel and his team at DJK Partners today!