With technology making things faster, easier, and automated, many Canadians today rely on online tools and software to file their taxes themselves. While this is a convenient and affordable option for those with relatively straightforward tax situations, it isn’t exactly a cakewalk for others, especially entrepreneurs just starting their own businesses or freelancers. When it comes to personal finance and taxation, it’s less about whether you can do it yourself and more about whether you should do it yourself. You may not want to hire professional help, but you probably need one. Why? Because your personal finance needs go beyond just taxes. You also have to take care of financial planning, estate planning, retirement planning, and things that don’t really cross our mind until it’s too late to prepare. But with an accounting firm by your side, all these needs can be taken care of at the right time and with the right guidance.

When Should You Consider Hiring an Accounting Firm?

Small business owners, freelancers, individual professionals, and others with complex financial and tax requirements could benefit from hiring an accounting firm. And if you’ve recently migrated to a new state with different tax laws, or experienced major life changes such as inheriting property, adopting a child, or retiring early, seeking professional guidance is necessary to understand your situation and plan the best financial path forward. Hiring an accounting firm, as opposed to just an accountant, gives you access to experienced professionals in every financial field, from accountants to bookkeepers, tax consultants, estate planners, and wealth consultants.

Here are some scenarios where an accounting firm can really help your cause:

• Sale of assets: Selling any kind of property, business, investments, or valuable assets, such as gold or real estate, that you have in your name – irrespective of whether you have bought it or inherited it – requires you to pay additional taxes, such as capital gains tax or alternative minimum tax. The larger the capital gain, the more complicated the tax requirements get. An accounting firm can help you plan the asset sale in a tax-efficient manner while complying with tax laws, without compromising on your long-term financial plans.
• Business ownership: Small business owners, sole proprietors, and professionals must pay various taxes, including corporate, sales, and personal taxes. They are also eligible for various tax benefits and deductions that could significantly reduce their tax liabilities, something a tax specialist from an accounting firm could easily guide them on.
• Managing estate on death: Tax matters related to an estate are different from personal tax rules and require the experience and knowledge of an estate planner. A professional accountant can help your family close your accounts, file your last tax returns and meet all tax obligations, manage your estate, and execute your will in a tax-efficient manner.
• Shifting to a new place: Migrating to a new province or to a new country subjects you to the provincial laws and tax laws of that country. An accounting firm can offer you the services of an experienced tax consultant to guide you on how to deal with the taxes in both your old and new hometowns. Sometimes, business owners also shift to a new province because of attractive tax benefits.
• Tax deductions/credits: The CRA offers various tax deductions and credits to individuals. However, laws around them keep changing, making it difficult to determine if you qualify. You need to elect for some deductions and meet certain reporting requirements. A tax professional can help you elect the right benefits and stay tax compliant.
• Couple Tax Planning: Several instances can prove tax beneficial for married or common-law couples, especially if one partner is a low-income earner. In some scenarios, they can split income and save money, or file jointly to get certain tax benefits and credits. A professional tax consultant can guide you around this depending on your eligibility and financial situation.

As your personal and professional lives evolve, your taxes and other financial implications change significantly. Not being aware of these implications could mean paying higher taxes for no reason, or even facing penalties or legal action from the CRA. All these hassles can be avoided by simply entrusting your financial worries to a reliable accounting firm.

Hiring an accounting firm for personal finance needs certainly is more expensive than DIY accounting. However, when you compare the outcomes, you will find you have saved much more. With professionals conversant in every area of life – estate planning, wealth planning, taxation – guiding and helping you, you can reap better results from the same resources. From making you aware of any incentives you could be eligible for, to deciding if a trust would be a better idea for your estate, to tackling questions about whether business owners should pay themselves salaries and dividends, to making informed decisions regarding investments, the accounting firm ensures your activities are aligned with your financial goals.

Contact Glenn Graydon Wright LLP in Oakville to Help You with Personal Finances and Taxes

Talk to a professional accountant to discuss your financial situation and work out a comprehensive financial plan that can manage taxes, grow investments, and preserve the value of your estate in major life events. To learn more about how Glenn Graydon Wright LLP can provide you with the best accounting and tax planning services, contact us at 905-845-6633 or connect with us online to schedule an initial consultation.