Tax agents are specially trained accountants who prepare and file income tax returns. These professionals, unlike bookkeepers, mainly focus on income tax. A tax agent is registered by the Australian Tax Practitioners Board and is authorised to file taxes on behalf of taxpayers. Here is a breakdown of some of the benefits you get from hiring a tax agent.

Understand How To File Income And Eligibility For a Deadline

While the task of bookkeepers involves calculating net income, lodging tax returns can be difficult. The process of filing tax returns is complex, particularly if you get your income from a trust or have foreign investments. The Australian Tax Office reviews your total income from different sources since there are standards required for calculating income from various streams. A tax agent knows how to calculate your income and how the different income streams will affect your total income.

If you are filing returns for the first time, you may find the task too difficult and might miss the deadline. Furthermore, tax laws are ever-changing, and it may be difficult for the layperson to keep up with the latest amendments. A tax agent will ensure you file your taxes on time. In case you miss the deadline, having a tax agent means you qualify for an extension when filing your tax returns. Additionally, a registered tax agent is informed about the latest changes in tax laws and will ensure you lodge your taxes according to the Australian law.

Advice And Insurance

A tax agent also acts like a tax advisor and tax account. This means they will advise you on tax planning throughout the year and show you how to frame quarterly or half-yearly strategies. The agent will also offer bookkeeping services and other accounting roles as per the required standards.

Tax agents usually have Accountants Professional Indemnity Insurance. This insurance coverage protects you against mistakes or negligence in executing accounting services as per the recommended standards. In case your tax agent is found liable, they will compensate you for their miscalculations and errors. Additionally, if a tax agent's management strategies fail, this insurance policy ensures you are reimbursed.

Summing It Up

A tax agent helps you file taxes from different sources of income and will help you get an extension if you miss the deadline for submitting your returns. A tax agent will also help you file taxes according to the law. Moreover, a tax agent will advise on the best strategies for tax planning. If you are reluctant to hire a professional to file your taxes, rest assured that these agents are insured to protect you against losses that may be caused by their miscalculation and errors.