Welcome to the topic Why It’s Important to Build a Relationship with Your Tax Professional.
Rethink if your idea of an accountant or tax professional is to drop your books off once a year, wait for the number crunching to be completed, pay your taxes, and then go your own ways for another year. You might be passing on an opportunity for a terrific relationship.
Maybe you should have thought about how getting to know your accountant better could help you plan your spending in a way that reduces your tax liability.
Rather than meeting with your accountant only once a year to sign off on the annual accounts and confirm your tax liability, how about meeting with them at some point throughout the year and before the year’s end to make some informed decisions?
These mid-year meetings, especially those held near the close of the fiscal year, can aid in the forecasting of prospective tax liabilities and the taking of appropriate action.
Communication with your tax professional should be simple and not feel like a waste of time, but rather an investment that yields something helpful, meaningful, and productive. The more often the communication is, the easier it tends to be to be able to get your message across effectively.
Here are some of the reasons why it is crucial to have a strong relationship with your tax professional!
Get Your Taxes Done Right
Getting your taxes done correctly is a vital and essential requirement. After all, getting this wrong could be the difference between your financial ruin and a potentially massive payout in tax returns.
You may not be aware of all of your tax duties or what is required of you, but that is where a tax professional can assist you. A good tax professional should start working for you well before the end of the tax year so that they can advise you on how to manage your money best.
Once you build a good relationship with your tax professional, they will also stay motivated to get your taxes done right and put in the extra effort to find tax deductions and credits that you can be eligible for.
Proactive Relationship
Your accountant should also inform you of any deadlines, as we discussed briefly in the previous paragraph. Your accountant should be proactive in ensuring that you are aware of your financial reporting obligations and deadlines.
You shouldn’t expect to get advice until you ask for it. Your accountant should assess your financial situation on a regular basis, search for warning flags, and offer advice on cash flow optimization if necessary.
Besides that, they should be notifying you of crucial financial deadlines and reporting deadlines, not the other way around. Once you have established a good connection with your tax professional and are in regular contact with them, it will be far easier for them to reach you and notify you of anything important to you or any changes that can affect your taxes. A good line of communication is always essential.
Increased Flexibility
Rigidity is the most powerful inhibitor of innovation, and in today’s fast-paced corporate world, that’s a surefire way to fail.
Accountants now have access to a variety of modern technologies that can automate many of the tedious and time-consuming tasks associated with the finance role. Wherever possible, your accountant should use these to help you save money and improve the efficiency of your methods.
Up To Date with Changing Laws
A fine may be imposed if you do not keep up with constantly changing legislation, laws, and regulations. A professional accountant or tax professional will not only keep you informed about forthcoming legal changes, but they will also be able to tell you how they will affect your taxes and how you can start preparing for them.
Keeping an open channel of communication will help the tax professional to gain an intimate understanding of your financial needs and keep an eye out for particular legislation changes that could affect your particular financial situation.
Distribution Of Assets in Case of Death
Because taxes can have an impact on your estate, you should consult an accountant to ensure that more of your hard-earned assets go to your heirs or charity rather than the government.
Accountants can help customers transfer assets on to children or grandchildren before they die or help non-profit organizations benefit from a client’s generosity while minimizing tax consequences. These tactics assist clients in allocating a greater percentage of their assets to organizations that benefit society.
When you have already built a strong relationship with your tax professional, they will know the critical details of where exactly you want your assets to go after you pass away, so they will do everything in their power to find eligible deductions or other forms of tax relief to the assets being distributed.
Maximize Tax Savings
How can you assist me in making this tax season better than the last one? Taxes are an inevitable part of life, and you may always search for methods to optimize your payment, deduction, and record-keeping processes. Your accountant, as an expert in tax laws and their ever-changing nature, can provide you with the information you require.
Once your tax professional knows more about you, they can give you personalized support and suggestions on what optimizations you can make in your life to have a positive impact on your taxes.
Help With Getting a Loan
Sometimes, you may need to take out a loan to be able to pay your taxes. Having a tax professional who is familiar with your financial situation might assist you in presenting a loan’s purpose and considering various financing possibilities.
Accountants can assist individuals with the following stage of obtaining a loan once the client’s needs have been determined.
Accountants typically assist clients in gathering the information and data needed for a loan, from quantifying existing financial circumstances and credit needs to determining repayment options. With this information, accountants can collaborate with clients to create appealing loan applications that will increase the likelihood of a bank’s approval.
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