5 things you should be asking your accountant

It’s tax time again. That “wonderful” time of year when we scurry ‘round the house looking through piles of receipts, slips and forms we filed somewhere or other in preparation for that mandatory visit to the accountant.

It was Benjamin Franklin that said, “… in this world nothing can be said to be certain, except death and taxes.”

There’s no avoiding it so consider yourself lucky that with a trusted accountant, you won’t have to handle all the complicated business that comes with tax filing.

But you’re not off the hook just yet. You still have some work to do to see how you can maximize your return or deductions at the end of it all. C’mon, it’s not that bad. If you do some prep work and know what to ask your accountant, you’ll be coasting in no time.

Plan Ahead, Be Prepared and Ask Away

Every year you vow to be better prepared. The struggle is real. We get it. Make this the year you do what you say. Along with all those documents you know you’ll eventually find, it’s a good idea to arm yourself with a list of questions for your accountant to avoid any potential delays. Here’s our top five to get you started:

1. Which documents do I need for my tax returns?

   Ask this question before your appointment so you don’t show up without the essentials.

   Forms and Statements

   It all comes down to how you make your money. Are you an employee or retired? Were you off work and received Employment Insurance? Did you make money from any investments?

   Your accountant will tell you the exact name of the income document you need and what’s the difference between ones you’re unsure about (think T4 vs.T4A). Be sure to jot it down so you know what to ask for from your employer or the government when confirming you have the right one.

   Receipts

   You’ll need your receipts for rent paid, daycare fees, public transit fares and medical expenses. If you’re a business owner, self-employed or a freelancer, can you claim meals out with clients? How much of your home office and vehicle expenses can you put down for business use?

   You’d be surprised by what you can claim, so don’t hesitate to ask about those makeup, hair styling and dry-cleaning expenses. Actors, we’re looking at you.

2. Are there any new tax credits and deductions that apply to me?

   If nothing significant has changed in your life, it’ll probably be the same old ones you’re used to. But, if your financial situation did change by tying the knot, starting a business or buying a house for example, that changes a whole lot. There may be a bunch of new deductions and credits that apply to the new you so be sure to look to your accountant on this one.

3. Is anything on my tax return putting me at risk of an audit?

   Missing information, unusually large deductions or entries that look suspicious are definite red flags. Before you press “send” and submit your details, ask your accountant to scan your return for things that might stand out.

4. What can I do to save on taxes next year?

   Interested in finding ways to pay less taxes? We hear that. In addition to helping you file, your accountant is also the person you should ask about lowering your future tax bills. Surely there are more important things you can do with some extra money. Dream retirement, anyone?

5. How will you store my tax information?

   Your accountant knows a lot about your finances and your personal information: your social insurance number, your profession, your business, your address and even your dependents’ names. Don’t be shy to ask how your data will be stored. Are passwords protected? Do files get encrypted? You have every right to know.

And Lastly,

Every tax payer’s situation is unique and that’s where your accountant’s professional advice comes in. They can make a huge difference in your financial standing and potentially land you an even bigger return.