Should I lodge my personal tax return myself or hire an accountant?

It's tax time again, and that means it's time to decide whether you're going to lodge your personal tax return yourself or hire an accountant. While it may be tempting to save a few dollars by doing it yourself, there are really only two good reasons to do your own taxes: you either enjoy the process or you're confident that you won't make any mistakes. If neither of those describes you, then you're better off hiring a professional. Here's why.

1. They'll Make Sure You Get the Maximum Refund Possible 

One of the main reasons to hire an accountant is to ensure that you get the maximum refund possible. An experienced accountant will know all the deductions and credits you're entitled to and make sure you get every cent you're owed. Preparing your own tax return can be time-consuming, and it's easy to overlook deductions and credits that you didn't know existed. An accountant can help make sure you get the biggest refund possible.

2. They Can Help You Save Money in the Long Run 

Hiring an accountant isn't just about getting a bigger tax refund this year; it's about saving money in the long run. An accountant can help you set up a system to track your expenses throughout the year so that come tax time, everything is organized and ready to go. This will save you a lot of time and headache come tax season. In addition, an accountant can help you establish systems to minimize your taxes in future years. This could include setting up a business structure that minimizes your taxable income or maximizing deductible expenses 

3. They Can Help You Avoid an Audit 

Another reason to hire an accountant is to avoid being audited by the ATO. The ATO audits less than 1% of all individual tax returns, but there are certain things that can increase your chances of being audited. These include high incomes, certain deductions, and not reporting all of your income. An experienced accountant will know how to minimize your risk of being audited and can help you avoid an audit altogether 

4. They Can Help You if You Are Self-Employed 

If you are self-employed, hiring an accountant is a no-brainer. Self-employed individuals have more complex tax situations and often need to file quarterly Business Activity Statements (BAS) in addition to their annual return. An accountant can help you navigate the complexities of self-employment taxes and make sure you stay compliant with the ATO. They can also help you take advantage of deductions available to self-employed individuals, such as deducting home office expenses or business travel expenses 

Here are a few bonus things you may need to consider:-

Accuracy 

The biggest reason to hire an accountant is accuracy. Mistakes on your tax return can end up costing you a lot of money in penalties and interest charges, so it's important to get it right the first time. An experienced accountant will know how to maximise your deductions and ensure that your return is filed correctly 

Timesaving 

Another good reason to hire an accountant is that it will save you a lot of time. Lodging a tax return can be a complex and time-consuming process, especially if you're self-employed or have a lot of investments. An accountant can handle everything for you quickly and efficiently while you focus on running your business or enjoying your free time 

Peace of Mind 

Finally, hiring an accountant will give you peace of mind knowing that your return is in good hands. This is especially important if you've had a change in circumstances during the year, such as getting married, having a baby, or changing jobs. An accountant can advise you on how these changes will affect your tax situation and ensure that everything is taken care of properly 

Generally speaking, it's a good idea to hire an accountant to prepare your tax return, especially if you're self-employed or have a lot of deductions . An experienced accountant can save you money by getting you the maximum refund possible and helping you establish systems to minimize your taxes in future years . They can also help you avoid being audited by the ATO and navigate the complexities of selfemployment taxes.

While it may be tempting to do your own taxes to save a few dollars, there are really only two good reasons to do so: you either enjoy the process or you're confident that you won't make any mistakes. If neither of those describes you, then you're better off hiring a professional. An experienced accountant will know how to maximise your deductions and ensure that your return is filed correctly, which could save you a lot of money in the long run. Plus, lodging a tax return can be a complex and time-consuming process, so hiring an accountant will save you a lot of time and stress.

So if you're feeling overwhelmed by the task of preparing your own tax return, consider hiring Tax App accountants to do it for you . It'll probably be worth it in the end .