Are you using a tax agent or an accountant?

Taxation has been a great dilemma for the business houses whenever the new budget and tax policies are discussed or passed on the parliamentary houses. And especially for the small business owners, it is quite an obstacle to clear wisely. Every well-established business firm needs great and well-executed strategies to mitigate the tax during the financial seasons.   

Income tax is one of the crucial subjects on which small business owners seek advice mostly. As the business kicks start, the lesson will help the owners to decide precisely what kind of entity they need to operate the business that can carry it forward too. This will help the owners widen the tax benefits, and when it comes to selling the company, the owners can minimize the tax owed through the small enterprise capital income tax concession. 

Is it worth going with a tax accountant?

The one thing you need to clear in your mind is that you can’t expect from an accountant to complete or do all the accountancy work precisely. We know you all relate an accountant to a tax-related aspect, but there is far more work that can be done by an accountant.

We understand this is a little hazy to understand, so let’s make this easy with few examples. In cricket, some players are exquisite while taking a catch at slip, and some are good at covers, mid-wicket region or straight boundaries. That means, in the group of eleven players, every player has his responsibility and skill of perfection.

The same goes for accountants. There are accountancy employees who are good at financial planning, cost management, in-house accountant, management accountant, etc. They have different specialties and qualifications for each accountancy aspect. Every accountant has a different set of skills and ways to solve a problem.

Tax agent 

On the other hand, notably, a tax agent works as a specialist accountant who has done tax law studies for tax regulation and compliance. He/she is registered by the board of Tax practitioners. It means you will get a significant tax service from a professional and authorized tax agent. The license is issued every three years that can be renewed after a fixed period.

However, a tax agent has a very different role; he/she is only responsible for the tax-related issues and final account report. But on the other hand, an accountant can give a broad range of services and bits of advice that may boost your revenue and business success.

The dilemma 

The sole problem with new owners is that they don’t even know whether to work with a tax agent or an accountant. During the initial stages, a small business house needs wise advice and assistance in making financial strategies. But if you have hired a tax agent, then he won’t be able to give the help because they are only specific to annual reports.

So, for better advice and assistance, go with an accountant. You can also contact Accounts NextGen for better support in finance.