Tax, advisory, and services. On their own, these words are not too difficult to understand. But, put them together and you get tax advisory services, which delves into the icky and complicated world of tax!
It’s safe to say that dealing with tax returns or managing finances isn’t everybody’s cup of tea, so it’s understandable if you hear the word ‘tax’ and immediately want to run for cover.
If that sounds like you, then you’d be happy to know that tax advisory services are a good thing and like a figurative knight in shining armour when it comes to your tax woes, worries and concerns.
In fact, tax advisory services can be very beneficial for people and businesses who struggle to manage their taxes, and find it difficult to meet all the government requirements and regulations.
In this blog, we will provide information on tax compliance, discuss what tax advisory services are, and outline what a tax advisor does.
Understanding Tax Compliance
Tax compliance is the important process of ensuring each individual or company pays the appropriate income, corporate, payroll, capital gains, and other taxes.
While most individuals and businesses want to stay on the right side of the ATO, complying with tax laws is often complicated and made difficult by frequent changes in regulations and industry requirements.
Despite the difficulty, tax non-compliance or tax evasion can result in hefty fines and may even lead to jail time.
Fortunately, tax advisors play a vital role in helping companies and individuals to comply with the tax law.
What Does a Tax Advisor Do?
Tax advisors are professionals who specialise in tax preparation, planning, and other tax-related services.
While tax advisory services include a wide range of tax-related work, the key function of a tax advisor is to guide their clients in matters they need to comply with the tax law.
These experts help individuals and businesses understand their tax obligations, fees, and legal rights. They also offer financial and business planning services to help clients increase their wealth and improve their overall financial well-being.
What Services Can a Tax Advisor Provide?
A tax advisor is a qualified tax professional who can help their clients make sense of the complicated ATO rules and regulations that apply to them.
Tax advisors can work for the government, for a corporation, or as an independent contractor in the private sector. As such, the tax advisory services they offer will vary from person to person and may depend on whether their client is an individual or an enterprise.
While the main function of a tax advisor is tax compliance, tax advisors also provide corporate-specific tax planning strategies and advice.
You can also use tax advisory services to file your taxes accurately and more efficiently. Other tax advisory services may include:
- Strategies to minimise taxes owed
- Proactive lodgements
- Systems to keep accurate, updated and complete records
- Clear annual tax and accounting services
- Tax compliance
A good tax advisor will also help you avoid any penalties or fines by ensuring you keep compliant with tax laws, regulations and requirements.