The following article is all about hiring a tax accountant in Liverpool and the five red flags to avoid while hiring a CPA firm for your financial affairs.
The tax codes are too complicated to understand for us who do not know anything about the tax laws. And this is the reason we often think of hiring a tax expert to take care of our taxation and financial affairs. You can think of taking care of the taxes on your own as it is not impossible. But if you are self-employed, own a business, or have a variety of sources to claim deductions, it will be best to have a professional person with appropriate knowledge of tax laws in Australia by your side. It is indeed that you need a good tax accountant in Liverpool for your taxation, but you should not make any wrong decisions while hiring. Getting on board with the wrong team can make you regret and lose money. Well, no worries! In this article, we will share the signs of a bad CPA firm to avoid making a wrong hire.
Watch out for these 5 red flags while hiring a CPA firm for your financing!!
It is indeed true that you should hire a tax professional for your business financial affairs, but make sure that you are hiring the right team. The last thing you want is to hire the wrong accounting firm and regret it later. Well, the following are 5 red flags that you should look for beforehand to avoid hiring a faulty team:
1. Do not fall for big promises:
Before you make your final decision, have a conversation with the team. Regardless of how great the CPA firm is, no accountant can promise you a big refund without reviewing your financial status and running the numbers. A professional accounting firm should promise you that they will file your taxes correctly and on time. If you find a team is making big promises, then it is a definite red flag.
2. The CPA firm is exaggerating:
A professional accounting firm should ask you to fill out your taxations and financial documents truthfully. Without that, you may end up getting ATO (Australian Taxation Office) audit and fines to pay as penalty fees. Even if you lie about your financial documents, your tax break will be easily found through legal ways. And, if the CPA firm you are about to hire seems not bothered about any of these, then it is a big red flag. It means that the firm does not have any knowledge about ATO or how taxation works. Hiring them will give you more trouble than you can imagine.
3. There are no fixed service charges:
Regardless of how big your tax refund is, there should be a fixed service charge described on the official website of the CPA firm. Accounting is nothing like a sales job where the fees will be sliding up or down. Ask for the service fee of the tax accountants before you hire them and check if they give you a fixed rate or not. If they sound fishy about the charges or do not agree to provide you with a written agreement, this is one of the common red flags. They will charge you based on how big your refund is, which is unprofessional.
4. Make sure to check the credentials:
Even though your friends or family members suggest you a CPA firm, make sure to check their credentials before hiring them. Regardless of how friendly the accountants are or how close relations you have with them, you should not throw away your hard-earned money to get help with taxation. Anyone can file tax returns; even you can do that. But not everyone is qualified to legally charge for it. And therefore, you should always check the credentials of the accounting firm before hiring.
5. The accountants want the refund check:
Since it is your tax refund, make sure that it will be your name written on it. If the CPA firm you are about to hire does not represent their clients with direct deposit options, then be aware of the firm. It is a big red flag. An accountant will only help you to prepare everything and ensure that your taxes are filed correctly. Apart from that, they can only guide you with financial advice, but there are no needs to process your check. If the team is asking you to hand over your check to them even though you have paid for their services, do not hire the firm.
Last but not least,
Are you thinking of hiring a tax accountant in Liverpool to handle your financial affairs? Before you make your final decision, ensure that the CPA firm is a good fit for your business. There are several things that you should consider checking beforehand. And, this article will help you with that.
The author has been an accountant by profession for years. With his deep understanding and experience in tax laws and financing, he has handled many taxes correctly and on time. Besides, he has also written several blog posts and articles on topics like how to find a tax accountant in Liverpool to help his readers.