Can a Bookkeeper Do Tax Return?

Preparation, as it is often said, is the key to success in life. Being proactive allows you to “get ahead of the ball” in whatever field you are endeavouring in. This is why many business owners have bookkeepers working diligently to maintain clear and precise records of income, accounts receivable, accounts payable and much more. 

If you have a bookkeeper working for you, you may have asked yourself, “Can my bookkeeper do my taxes?” While you could get a simple yes or no answer, the truth is a little more layered than that and is worth unpacking to understand your options. 

What Does a Bookkeeper Do?

Bookkeepers and accountants are sometimes confused and understandably so. They both work with your finances, they both prepare and file information for your taxes and you have a trusting work relationship with both of these people. But what does a bookkeeper do?

  • Bookkeepers have financial education and training 
  • They generate financial reports
  • Work diligently to keep your financial books up to date and organised
  • Help with payroll and payroll tax concerns
  • Bank reconciliations
  • Prepare forms and analyses of your financial records

A bookkeeper’s main job is to maintain clear, easy to access financial books that are helpful to you as a business owner. Accurate reporting of different business activities such as sales, purchases, expenses, payments and receipts. Depending on the size of the business, they are often involved in the process of payroll, inputting information and organising the payroll records. 

They can be an indispensable asset to a business owner who doesn’t have the time, or the patience, to handle financial record keeping. Since they are working so closely with all of your financial information, can they do your taxes as well? If they have an intimate knowledge of the inner working of your business and finances, wouldn’t it make sense to have them file your taxes?

Is a Bookkeeper the Right Person to Do Your Taxes?

When it comes to your bookkeeper, there are no rules or regulations that bar them from being the one to do your taxes. If you can file your own taxes, there is no reason why you couldn’t get your bookkeeper to file your taxes on your behalf. If they are qualified and you trust them to do the job properly, your bookkeeper can take on the task of doing your taxes.

Whether or not your bookkeeper is the right person to do your taxes depends upon your particular situation. There is no legal requirement to have your taxes done by an accountant but having an accountant prepare your taxes, instead of your bookkeeper, may be the right choice for you and your business. There are many factors involved in whether or not you would choose an accountant to do your taxes instead of your bookkeeper.

  • Does your bookkeeper have the right training to properly do your taxes?
  • What size is your business and how intricate are your tax filings going to be?
  • Is your bookkeeper certified or part of a professional organisation?
  • Do you trust your bookkeeper to do your taxes properly?

Every business is different. Yours is no exception. When it comes to doing your taxes, make sure to do what suits you and your business best. Doing your taxes properly is a critical part of running your business and you want to make sure that it is done well. Asking these questions will help you determine who should shoulder the responsibility of doing your taxes when they come due. Visit AccountingPreneur for information and help.