A guide for Mississauga, ON taxpayers: What is professional tax preparation (and why it matters)?
Individuals and businesses alike benefit from the focused expertise of tax professionals. However, the nature of business only adds to the complexity of preparing taxes, which further underscores the need for partners who are trained and experienced with taxation. Furthermore, experts like the Chartered Professional Accountants at Miranda Professional Corporation stay on top of the latest changes to requirements, credits, and deductions issued by the Canada Revenue Agency.
What is professional tax preparation?
CPAs have demonstrated educational and practical experience requirements. To earn this designation, professionals must show that they are competent in areas including taxation, audit and assurance, corporate finance, financial reporting, and strategy. Unless you are already trained or work within these areas, this type of experience and skillsets cannot be replicated with popular, “one-size-fits-most” software alone.
Why is proper tax preparation so important?
Failure to file taxes completely, accurately, and in a timely manner can be a costly personal and professional wealth misstep. The Canada Revenue Agency notes that the late filing penalty is 5% of your balance due. However, this penalty builds upon itself for each month the payment is late. You will incur a 1% fee on top of what is already owed with each passing month after the deadline for filing. There are also stiff penalties for failing to disclose all your taxable earnings. For instance, the federal and provincial penalties are the lesser of either 10% of the amount that you did not disclose, or 50% of the difference between the understated tax and the tax withheld (related to the figure you failed to report). Finally, there are also penalties associated with knowingly or negligently falsely stating or omitting required information in your filing.
What are some other ways professionals can save me money?
It is probably an understatement to say that no one looks forward to tax time. We encourage you to see the seasons as an opportunity, and to see beyond the season. A little foresight throughout the year can make preparing and filing taxes a hassle-free experience.
There are also many credits and deductions available to individuals, families, and business owners. These deductions minimise your tax liabilities. You will not overpay when partnering with CPAs who understand the very latest tax relief options that may be available to you. Additionally, “time is money” is a trope for good reason; it rings true, after all! Tax preparation can take time that you simply do not have to complete in a fashion, which is free of errors and accounts for all your liabilities.
Why choose us?
As a firm with more than 30 years of partnering with individuals and diverse organisations in and around, we are well-versed in the tax process. We leave no stone unturned. In fact, as just one example, we take full advantage of the provisions established by the CRA. Tax code allows for adjustments to previous filings going back 10 years. Most firms only review the current and year-prior taxes; they do not take advantage of the cost-saving opportunity afforded by the language of the law.
Contact us today to schedule your consultation.
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