CRA Appeals Service Header Image — Gateway Surrey

10 Benefits Of Hiring a Tax Audit Accountant

April 15, 2022 Andrew AdolphAudits

10 benefits of hiring a tax audit accountant

Let’s face it. For most business owners, tax audit accountants are as essential as they are easy to forget. Urgent priorities like client meetings, sales initiatives, and purchase orders can impede managing your books.

While it may seem harmless to delay attending to your financials, it’ll cost your business more in the long run. Trying to multitask your way out of everything can put you behind when tax season comes. It’s never fun to be the one paying an accountant to fix everything last minute.

Can a Tax Audit Accountant Really Help Your Business?

Don’t get me wrong; spending time and money on revenue-generating activities definitely makes sense. But, improving your business comes with knowing your numbers. In fact, according to Forbes, having a tax audit accountant can sometimes make or break a business.

In addition to letting you know if you’re really making money, a tax audit accountant can also tell you which investments result in a return, how to forecast your sales so you can get a bank loan, and much, much more.

This article shares how staying on top of your books can help you stay on top of your business. We’ll be diving into the benefits of hiring a tax audit accountant and why a bookkeeping service can give you peace of mind.

10 Reasons to Hire a Tax Audit Accountant

  1. They help you manage your finances.
  2. They save you money by keeping your tax filings up to date.
  3. They help you maximize your tax benefits.
  4. They can help you understand which expenses you can write off.
  5. If your company undergoes an audit, the death of a business partner, employee fraud, or other challenges, having a strong bookkeeping system in place will be of great help to you.
  6. They can keep you updated on changes in budget announcements and tax legislation that affect you.
  7. They can help you spot ways to save money.
  8. They can provide you with peace of mind.
  9. They can free you up so you can run your business.
  10. They can free up space for family and fun.

What exactly does a tax accountant bookkeeper do? They do some or all of the following.

Conduct a Month-End Close Process for Your Business

  • This ensures your financials are up to date and that your business has its activities properly documented.
  • Having up-to-date books helps you monitor the pulse of your business.

Record, File, and Pay Sales Tax (Gst/Hst/PST/Rst, and on and On…)

  • Not understanding sales tax can cost a business thousands of dollars.
  • Not staying on top of sales tax can easily kill a business in the event of an audit.
  • Not filing sales tax returns on time can cause late filing penalties and compound interest.
  • Not claiming back everything you are entitled to is another source of loss to businesses.

A bookkeeper with sales tax knowledge will help you navigate this minefield.

Manage Your Cash Flow

Keeping tabs on how much money you have and how much you expect to receive and disperse is essential to keep your business prepared for anything. Your CPA bookkeeper can help you forecast revenue and expenses, which can guide you in making profitable long-term decisions for your business.

Process and Reconcile Payroll

  • Making sure employees are paid and there is enough in the bank
  • Filing payroll returns
  • Tracking and accruing vacation pay
  • Tracking expense reimbursements
  • Filing T4s
  • Filing Records of Employment
  • Prepare and issue invoices

Delegating this crucial responsibility to a professional can free you from the stress of late payments.

 

Other responsibilities tax audit accountants or bookkeepers may do

  • Process or remind you to renew your municipal business license.
  • Remind your lawyer to complete annual filings.
  • File your Worker’s Compensation report and pay the bill.
  • Help answer annoying queries from the government.

Bottom Line

Hiring a tax audit accountant or CPA bookkeeper can significantly help you keep track of your business’s financial position. Knowing your numbers allows you to maximize savings and profitable opportunities and avoid costly mistakes long term.

Are you a small business owner or freelancer looking to grow and sustain your business

To book a free meeting call 604-240-6173 or email me at andrew@gatewaytax.ca. I can answer any financial or tax-related questions and help you set a profitable financial plan. You can also visit the Blog for additional tax-related resources.

 

Image

Andrew Adolph

Andrew Adolph is a CPA and former CRA auditor with 25 Years of experience. He helps businesses to not par any more in sales taxs than the law says they must and acts as an advocate for you if you are being audited, so you can fous on your business.