We've said it before and we'll say it again ... Tax is complex. It's important to get it right the first time!

When you hire a Chartered Professional Accountant (CPA), you are employing someone with years of accounting and tax experience. Canadian CPAs are required to study and pass rigorous examinations to earn their designation. CPAs are also required to engage in ongoing professional development and are closely monitored by CPA. Allowing a CPA to focus on the numbers means that you can refocus time and attention back on your life and your business!

Some of the common myths we hear about hiring a CPA:

1. Hiring a CPA is extremely expensive! - False. Firms like Definitive Wealth offer competitive rates. Tax preparers (even those at the mall around tax season) may not be licensed CPAs and may not necessarily offer better rates (particularly if your tax situation is complex). Working with a CPA will ensure that your taxes are done correctly. You or your company will maximize deductions, avoid CRA fines and penalties, and better plan for future life or business events. For businesses, outsourcing accounting and tax functions may also prove to be more cost-effective than hiring an in-house accountant!

2. I can just rely on tax preparation websites to file my tax return - False. If it were that easy, there would be no need for tax advisors! Many clients come to us after they have incorrectly claimed a tax credit or after they have filed a form or schedule incorrectly. Often these errors result in additional fees, as well as CRA fines and penalties. CPAs have experience dealing with a variety of situations and are up-to-date with legislative changes. They know what a tax return should look like.

3. Only large and complex corporations require CPAs - False. Even small start-ups and new entrepreneurs need to manage funds effectively, build budgets, pay taxes, and incur expenses. CPAs can help account for all of this. A strong CPA can be crucial to a new business' success.

4. Tax advisors only prepare tax returns - False. T1s and T2s are just a small part of what CPAs do. Clients treat us as business advisors who are there for them when they are trying to figure out how to pay themselves with funds earned by their company, when they're trying to choose between RRSPs and TFSAs, and when they're trying to structure or expand their business. Clients also call us to help with tracking business income and expenses, budgeting, or payroll. CPAs can do it all!

Hiring a CPA can save you or your business money in the long-run and ensure that you and your business are compliant with Canadian tax laws and regulations. Many companies hire CPAs when it's too late (e.g. when they're under audit or when they're trying to sell their company) and errors are even more costly to fix!