Tax season in Canada is highly frustrating, we understand!
Most people have the thought crossed their mind, “Can I do my taxes on my own” or “Do I need a personal tax accountant in Mississauga to manage my tax filing”.
See. The answer is, it depends!
It depends on a lot of factors including your financial complexity, time, and ability to understand the complexities of CRA, etc.
To remove any sort of query and give you an answer to this complex thought, we’ve prepared this detailed guide. Keep reading this 3-minute blog to help yourself.
TAXES IN CANADA_WHAT’s, WHO’s, HOW’s
Here’s what you need to know about taxes in Canada, including who is supposed to pay, how much, and to whom.
- Every Canadian is required to file their tax return to the Canada Revenue Agency (CRA) by April 30 each year. You can file your taxes electronically or by post, ensuring it reaches the CRA by midnight on April 30.
- If you earn $3,500 or more annually, you’re required to pay taxes. Once you or your personal tax accountant completes the tax filing, the CRA will notify you of any additional amount owed.
- Failing to file can lead to a 5% penalty on any outstanding balance, so staying updated on tax requirements is essential. To learn more about potential tax implications for small business owners in Canada, check out our blog post on Understanding Tax Implications on Small Businesses in Canada.
WHEN SHOULD YOU FILE YOUR TAXES BY YOURSELF?
If you fall under any of these categories/conditions, you can hopefully file your taxes by yourself. If you meet these conditions, putting your heart and soul into the tax filing process won’t go in vain.
- You have ample time:
- One of the best reasons for you to file your own taxes is to have plenty of time to concentrate on the complexities of the process.
- You are likely to spend almost 30 hours over the course of a few weeks tackling the whole process.
- If you are able to dedicate these hours to the process, go ahead and file your taxes.
- Your financial situation is not too complex:
- If you aren’t a business owner, have a single job as a source of income, or your financial structure is pretty simple and straightforward, you can file your taxes easily by yourself.
- There are plenty of tax preparation software available where you can easily learn the whole process. Some of these software are TaxTron, TurboTax, and H&R Block.
- If you are not sure about the paid tools, you can use free ones as well. GenuTax is one of the most reliable free tax preparation software.
- All of these software are CRA-approved so you can rely on them and learn about tax filing education.
- You have experience in finances:
- If you have experience in accounting and finance, and understand your financial situation thoroughly, you might be able to deal with the tax process.
- Prior knowledge about Canadian tax laws and other formal necessities gives you a major edge in saving money to hire an personal tax accountant and do it yourself.
WHEN SHOULD YOU HIRE A PERSONAL INCOME TAX ACCOUNTANT IN MISSISSAUGA?
If you don’t match with any of the conditions mentioned above, there is no contempt for hiring a personal tax accountant. In fact, there are a lot of good reasons and benefits of hiring a professional accountant.
Make sure the accountant you hire has experience in the field and has an accreditation status. The most common and valued accreditation status is the Certified Professional Accountant.
Go for hiring an personal tax accountant if:
- Your tax situation is highly complex or excessively changed:
Did you go through a huge financial transformation this year? If that’s the case, working with a personal tax accountant will help you easily figure out what to do next.
- You are a business owner:
Running a business, regardless of size, often leads to fluctuating finances, which can add complexity. To learn about the cost-effectiveness of hiring an personal tax accountant for small businesses, read our post on the Cost of Bookkeeping Services for Small Businesses.
- You are new to the state and overwhelmed:
- If you have recently immigrated to Canada and don’t understand the tax filing process, a thorough consultation with a professional accountant will help you understand.
- Does the tax filing process feel hectic? And why not when the tax laws are always changing? If you can manage the hiring fee, go ahead with your decision and hire an accountant. Relive the stress and hire a professional personal tax accountant.
KEY TAKEAWAYS:
File your taxes with the Canada Revenue Agency (CRA) by April 30 each year if you earn $3,500 or more annually. Late filing can result in a 5% penalty.
Consider hiring a professional accountant if:
- Your financial situation is complex.
- You’ve experienced major financial changes.
- You own a business.
- Or you’re new to Canada and unfamiliar with the tax system.
Hiring a Certified Professional Accountant can reduce stress and ensure compliance.
Looking for a personal tax accountant near you in Mississauga?
Numeracy Accounting Solutions is here to help you.
Book your first consultation with us and let us turn your stress into satisfaction.