It doesn’t seem to matter what type of financial service you seem to need today it always involves signing something. When you have chosen the Toronto tax accountant, that you want to do your taxes whether for business or personal you will also be asked to sign something. This may be a Notice to Reader or Letter of Engagement.
So what does this really mean? It actually serves a very useful purpose in letting you know just what you can expect from your accountant. All too often when hiring these types of services for tax completion tax payers think that they are now putting all their responsibility on this type of financial expert. They believe that if anything goes wrong with their taxes it’s the accountant’s fault and he should be held accountable. This is not the case.
Your tax preparer does your taxes based on the information that you provide him. His job is not to verify all of this information. This is why it is so important that you provide truthful and accurate information. The letter of engagement serves the purpose of making sure that you understand this. If your tax person fills out your taxes based on misinformation then that responsibility is yours.
Another misconception is that many people believe that once the accountant has prepared the financial statements that they can be used for any purpose such as financial proof for obtaining a loan. You should see a disclaimer on this Notice to reader that specifically says it may not be appropriate for their purpose.
So based on this you may be thinking then what is the real value in using a tax accountant? Stop to think for a moment just how overwhelming those tax forms are, especially if you are a business entity. Your tax expert fully understands these forms and can easily fill them out with the information you have provided him with. He will also be able to determine if you are getting all of your potential tax credits based on the data he receives. Then by knowing the applicable tax laws to you he is going to ensure that your tax return is done accordingly. This is often where individuals run into difficulty with their taxes. They don’t understand the proper filing requirements or the tax laws. These are all the benefits that your Toronto tax accountant will provide for you.
If you don’t understand something that is on the Notice to Reader or Letter of Engagement be sure to ask your tax accountant to explain it to you. You will then find that you feel far more comfortable signing this form and have the right confidence in knowing you made a good choice to choose this type of tax expert to handle your tax matters for you.
