Best Tax Preparation Services

What can a tax preparation service do for you?

A tax preparer is a professional who works for a tax preparation business. They are qualified to calculate, file and sign individual and business income tax returns.

Reasons you need to lodge a tax return

There are several reasons why you might need to file a tax return such as the following:

• Had any tax taken out (withheld) from the income you receive
• Had $1 or more of foreign income
• Are a liable or recipient parent under a child support assessment
• Had business or investment income
• Are leaving Australia and have a study or training support loan.

Tax agents are accountants who have received special training in how to prepare and file Income Tax Returns, and they are constantly studying tax so you don't have to.

A tax agent has more training and qualifications than a regular accountant. As a result, the Australian Taxation Office (ATO) allows agents to assist taxpayers and lodge tax returns, as well as gain access to special ATO systems.

A TPB logo, such as the one shown here, should be displayed by every registered tax agent, along with an official registration number.

Example TPB Registration #12345678

Pros and cons of hiring a tax preparation service

It is based on personal preference and circumstance whether you’ll fnd it worthwhile to hire a tax preparation service or not. Those with financial experience and expertise or those with a simple financial situation may find it more time-efficient and cheaper to do it themselves. However, for those filled with dread about the idea of filing a tax return, fret not because you don’t have to face it alone and you can get help from a tax professional.

You can save yourself hours of slaving over tax forms and scouring your house to find lost receipts and bills by bringing in a professional. Between house purchases and dealing with loans and multiple incomes, your financial situation may be complicated and it may be worth hiring someone to double check your finances for you.

This does not mean you cannot do your own taxes though as the difficulty in everyone’s tax return is different. Here is a summary of a few advantages and disadvantages to consider before hiring a tax professional. Each pro and con is explained in more detail below.

Key benefits of using a tax agent

Saves you time (and time is money)

The average person spends 20-40 hours on their tax returns, and many people spend more than that; that's a full work week's worth of time and money.

A tax professional, on the other hand, can work quickly and efficiently, saving you not only time but also the stress of calculating finances and finding old bills.

Simplifies complicated financial situations

It is not only difficult and confusing to file a tax return, but it is also constantly changing. Tax laws in Australia are updated regularly, making it difficult for the average taxpayer to keep up with all of the changes that may affect them. Situations like these can make your tax return more complicated, so you should consider consulting a tax professional if:

• You own, sold, or are starting a business
• You have many investments with losses and gains
• Capital asset transactions (homes, cars, investment properties, stocks, bonds)
• Real estate transactions
• Change in marital status
• Your income and residence are not in the same state or country
• Self-employment income

Accurate and efficient work

Even if you enjoy managing your own finances and are capable of it, hiring an accountant to prepare your tax return may be a wise decision. A professional who can double-check your income, expenses and deductions can help you avoid costly mistakes. Two eyes are better than one.

Hiring a tax professional will not only provide you with a second set of eyes to ensure that everything is in order, but it will also put someone in your corner if you are audited.

Expertise

Let's face it: tax is a complicated business for those of us who aren't trained accountants, which is why many people prefer to leave it to the professionals to get the best possible refund. It's unlikely that you'll be able to spot all of the deductions you're entitled to if you're not an expert in occupation-specific deductions.

Accountants and tax agents are trained to look for ways to get the most out of your tax return in the shortest amount of time possible. It also pays for itself because the fee your accountant or tax agent charges is tax-deductible.

Cons of using a tax agent

They can be costly

While the cost of a tax accountant is tax-deductible, you will still need to pay an upfront cost. Prices to fill in and lodge the tax return on your behalf tend to range from $100 to $300+ depending on the complexity of your situation.

In addition to hourly fees that you will often incur, the price can quickly rise based on the complexity and paperwork required by your return.

You might hire a scam

If it sounds too good to be true, then it probably is.

Unfortunately, many scam artists start surfacing towards the 31st of October deadline, pretending to be tax advisors or the ATO themselves.

It’s worth reading reviews on a particular company and asking them to verify their certification number before handing over any personal information.

Also keep in mind that In reality, the ATO will never ask for personal information, including credit card details and TFN, by text or email. Nor will they ask you to pay money to access a refund.

They can still make mistakes and you’re still accountable

There's a reason you have to sign off on your tax return, even if it's done by an accountant. You're declaring that the agent completed the return correctly, and you're the one who bears responsibility.

If an issue arises later, and you provided the correct information to an agent, you can file a complaint with the Tax Practitioners Board. However, this will add to the amount of time, money and paperwork required.

To avoid this, make sure you hire a reputable service with a long-standing history of happy clients.

Tax help programme

ATO’s free Tax Help programme helps people earning $60,000 or less lodge their tax return online. If you need help lodging your tax return, you may be eligible for the Tax Help program.

Tax Help is a network of ATO-trained community volunteers who can help you prepare your tax return using myTax.

From July to October each year, accredited volunteers help people lodge their tax returns online. They can also help you:

• Lodge amendments
• Claim a refund of franking credits
• Create a myGov account
• Tell the government if you don't need to lodge a return

You can receive Tax Help online or by phone. You can also get help face to face from Tax Help centres across Australia.

What to look for when hiring a tax accountant service

Qualification

Tax agents must be registered with the Tax Practitioners Board (TPB) to charge a fee for their services. Every tax agent accredited by the TPB meets the board’s qualification and experience requirements so you can rest assured that you are in good hands. Look out for this qualification before hiring any tax accountant or service to avoid potential scams.

Fees and partial/full assistance

Take into consideration how much a company is charging for a basic tax return. These fees will depend on your tax needs and will take into consideration whether you’re a student, a sole trader, a senior citizen or are representing a business. Cheaper services start at $50, but these only include semi-assistance and involve reviewing your form before you submit it.

Full-assistance tax returns are normally done face to face and costs can range from $100-300.

Types of tax services

For those who don’t have time to visit a tax agent’s office during business hours, you can now opt for an online or over the phone service. On the other hand, you can go see your tax advisor in person if you require a more direct and comprehensive approach. For those struggling to choose between the two, you can opt for a combination of both to best suit your needs.

Timeliness and customer service

Reading reviews will give you a good indicator of how long a company will take to file your tax return and whether they stick to their promises. In the same vein, a company’s reputation is important to consider - something you can scope out by reading reviews on our website.

Specialities

Some tax agents may specialise in tax returns for students, backpackers, seniors, immigrants and emigrants. In addition, you might want to check out if they’re able to perform more complex tax returns, such as those required by SMSFs, small businesses, sole traders and people with various income streams.

You can read reviews on the best tax preparation services in Australia today on our website.