Why Filing DIY Personal and Business Income Taxes Is A Bad Idea
If you’re looking for ways to save on taxes and claim credits, DIYing the job may have crossed your mind. Usually, professional tax preparation services cost money, and to save as much as you can, you may want to cut out this expense. However, tax preparation is a complicated job that requires expertise and experience. Without this, you’re bound to face several challenges that can complicate your finances and expose you to an immense amount of stress.
To give you an idea of the problems you may face, GenNext Chartered Professional Accountants has listed three reasons why filing DIY personal and business income taxes is a bad idea!
1. You may make mistakes with calculations
Accounting and tax preparation are time-consuming tasks that require attention to detail. Moreover, these tasks require skill and an understanding of how to treat different transactions. You also need knowledge of where you can save. If you lack these requirements, you could make mistakes and miss valuable credits and deductions.
2. You could face financial implications
Apart from losing out on valuable credits and deductions, doing your taxes yourself can also cost you more in the form of fines, penalties, and interest costs. Filing your taxes incorrectly can lead the CRA (Canada Revenue Agency) to believe that you are trying to cheat them. This may instigate them to penalize you or initiate an inquiry into your accounts.
3. You may miss your deadlines
There are deadlines that apply to many elections that need to be made. If missed, there can be fines and penalties, or significant tax savings can be lost. If you’re struggling to file your taxes, there are high chances that you may miss your deadlines.
Do things right - Hire a professional!
It is not required to have a certification in tax preparation to file your own, but taxation is too complex, and rules are legally binding. Therefore, mistakes can be very costly. For this reason, you need to get your taxes prepared and filed correctly.
Chartered professional accountants (CPAs) are the ideal experts to help you with your taxes. They will have expert knowledge of the Income Tax Act as well as generally accepted accounting principles. They are trained and experienced to understand different scenarios and situations and the rules that apply to them.
Just remember, when choosing a CPA firm, make sure that it is registered with the Chartered Professional Accountants of Ontario. This ensures that you receive top quality services that you can count on.
For a reliable accounting firm in Mississauga, Ontario, reach out to GenNext Chartered Professional Accountants. We are qualified to meet all of your accounting and tax requirements and will work closely with you to formulate a business strategy for managing your accounts and investments. We take pride in our ability to build long-term relationships and provide you with leading-edge solutions customized to suit your needs, circumstances, and save you money. We are not an average accounting firm. We offer a broad range of accounting and tax services, from advice to actual solutions that solve your problems and make your life easier. An initial consultation with us is complimentary, and our fees are reasonable and consistent with the complexity of the engagement.