The top 10% of earners in Australia pay for about 50% of all of the income tax collected. Those of us not in this top group still need to file and make sure the information is correct.
Each year, individuals and businesses alike gather up their financial documents from the previous year and report their status to the government. Some are lucky enough to qualify for a return, while others must make additional payments.
A tax agent can help you with this. What is a tax agent you ask? Keep reading to find out who these people are and why you need to hire one for your tax preparations.
What Is a Tax Agent?
Tax agents are people who have gone through the proper training and testing to assist people in fulfilling their tax obligations. These are people who have taken the IRS testing and participate in continuing education to maintain their standing.
Tax accountants and tax agents are slightly different professions. Agents tend to focus on the historical actions of your company. They ensure the right forms get filled out, and the proper processes get followed.
Accountants tend to focus on the current performance and future profitability of the company. They’re more likely to make recommendations for your future financial plans.
Correctly File Your Taxes
Having mistakes in your tax return opens your business up to liability and fines. This can create headaches and financial strain later on when the mistakes get discovered.
A tax agent will check your return and ensure that everything is filled out correctly. If you prepare your taxes on your own, you risk making a mistake and not even knowing it. If this happens to you, hiring a tax agent will help you correct these errors.
Get a Tax Break
When you hire a tax agent to help you, you can write off those expenses. This is considered a business expense, and you can write off the previous year’s expenses on your current tax filing.
Do you even have time to gather all of your business documents and sit down to prepare your filing? You have a business to run, so let the professionals handle your tax filing.
Upon hiring a tax agent, they’ll go over your business with you. This will enable them to outline the exact forms and documents they’ll need to prepare your taxes. This will save you time by not gathering items you don’t need.
Gain Extra Time
Sometimes you need more than the allowed time to finish preparing your tax documents. Failing to meet the deadline can result in additional fines. A tax agent can help you get more time and avoid the fees.
They’ll file for an extension, which will push your filing deadline out.
Hire a Tax Agent Today
Now that you’re no longer asking, what is a tax agent, you’re ready to hire one for your business. Look for someone who has the proper credentials. You want someone who has the latest information about the different tax regulations.
Check out the business section of our blog for more guidance on making your business a success.