Reasons You Should Hire an Accountant to Do Your Taxes


In a few months, it will be the tax season again. This means that people are going to scramble to collect their tax information and other financial documents. If you’re a professional or self-employed, you’ll be scratching around for gas receipts and other proof of expenses. What a headache, right? The easiest way to get out of this torturous process is to hire an accountant to do the work for you. But an accountant charges around $180 for tax returns without itemized deductions. You’ll have to pay at least $300 if you itemize your deductions.

Unless you want to face tax litigation in Los Angeles, California or other cities, you should consider hiring an accountant who will do your taxes. The accountant can walk you through the process of preparing your tax returns. Think about it. Aside from not having to do the paperwork, you will also learn about how to be more prepared next year.

Besides, that $180 or $300 is a one-time fee. You don’t have to pay the accountant every month. It sounds a pretty good deal, considering all the work that they have to do for you.

Having a Small Business or a Side Hustle

If you run a small business, you’ll be eligible for a lot of exemptions. There will be deductions from your taxable income. A professional tax accountant can help you understand the intricacies of filing business taxes. Besides, if you accidentally file the wrong taxes, your business will be in a lot of trouble.

Selling products online, doing consultancy work, or driving Uber are considered side hustles. Whether you earn from these activities or not, they should be declared in your tax returns. Not doing so violates certain provisions in the law.


Failing to File Income Tax in the Past

Have you been delinquent in filing tax returns in the past? Do you want to rectify this issue now? The government can come after you if they discover that you have been negligent in paying your taxes on time. Reach out to an accountant immediately so that they can advise you on the next best steps to take. Accountants can help you file the proper forms and pay the taxes that you did not. They may also be aware of certain programs that fit your situation.

Receiving a Letter from the Revenue Agency

Did you recently receive a letter from the revenue agency—or the IRS in the U.S.)? Don’t be too worried (unless you have something to hide). From time to time, the revenue agency can ask for clarifications and extra documents. They do this randomly. But you should still hire an accountant the moment you receive a letter. An accountant can help you answer the inquiry properly.

Owning a Rental Property

Running a rental property can be tricky and confusing when it comes to taxes. You are eligible for certain deductions that only your accountant can explain to you in detail. You should at least hire an accountant during the first year of owning a rental property. This will make sure that you pay the proper taxes so that your rental property won’t get into trouble.

A good accountant can help increase your refund. It’s all about strategizing your income tax return. That $300 you are trying to save can be a fraction of what a good accountant can save from your taxes.