Hiring a tax accountant, is it useful? Unquestionably, there are huge range of critical aspects which can easily be managed after hiring of a professional tax accountant. Basically, there are too many tax and accountancy firms furnishing there services so that businesses/companies can focus on their core areas without enduring any unfavorable consequence. Also, note that their client list also constitutes a massive number of salaried individuals or business individuals. If we take a look on list of services which can be fetched after recruiting a professional accountancy firm, such list includes a) lodging of annual and monthly tax returns b) making of prompt replies to Government officials and departments c) formulation of tax strategy and tax planning d) assurance of pledge that company would always remain fully tax complaint e) representing companies/businesses before Government officials and other stakeholders f) coordination and liaison with finance department of a company etc. It is always important that finance department of a company should remain in contact with tax consultants. This is because accounts and taxation matters are highly dependent are related to each other. However, especially Australian tax consultancy firms always take care about this aspect and so, usually try their best to enhance their contact and interaction with company’s finance department.
As far as better tax planning is concerned, no one can deny that tax planning and strategy is a long term and continual process which initiates at incorporation of a business and culminates at cessation. Basically, initial strategy formulation requires business decision like why, to invest, where to invest and how much to invest? All these decisions are not merely influenced by return on investment but also highly depended upon the tax consequence of a transaction. Let’s, say, investing in a cement industry would let your company to pay more taxes because of heavy rates and duties are implied on taxation of cement sector. If this is the case, either you will drop your decision or have to plan a better alternative which can save your material spending of money. This example shows that every business decision has a financial impact and every financial aspect has a tax consequence.
So, it is always important to recruit extremely qualified and technical tax consultants irrespective of their higher chargeability on account of professional services. This is because your tax accountant should be competent enough who can make adept tax plans and convert such plans into a reality. So either for a salaried individual or a large corporate group, no one can deny that having a right service provider who can handle any kind of tax dilemma is a rapturous decision. After all, “tax consultants are also risk managers of a business”