Taxes. Do you do your own or have them done for you?

Hi ladies.

Hope everyone enjoyed their thanksgiving and the extra day off daycare!

I've been running home daycare for a number of years now and have always used an accountant. I find she is rather pricey (around $500) and myself have university knowledge of the basics of accounting. Seeing as she breaks it all down in my tax booklet each year for me to see how much she claims ect. is it crazy for me to try and do it myself? Do any of you do it yourselves? any tips or suggestions? I am VERY ocd organized with my logging of expenses each year and keep any and all of my receipts for items purchased and groceries ect... I give receipts for all my parents and any money that is received for the children here, I suppose my worry is that i will be audited if i do it on my own. Is it worth the protection of an accountant in this field of work? This was my main purpose of using an accountant up until now.

thanks in advance for any help/tips :)

For myself I would never do it myself. We have a great accountant and personally I think there is just too much of a risk on missing things, not using the right percentages etc. I also like that if I am audited it is them dealing with the auditors not me. I pay $500 for my taxes and my husbands. To me it's worth it.

I am very detailed and organized too but have no idea on what percentage is used for my vehicle, capital expenses, home repairs. I give totals and then they figure out the rest.

I have always used an accountant. I'm afraid I'd miss some write offs, not for the regular business ones, but our claims as a family etc. About $500 for 2 adults and the business.

A few years ago I found an amazing accountant who is semi-retired so I pay an incredibly low fee for her to do mine. However, when she fully retires, I am considering learning how to do mine. She's been great at telling me over the years things here and there and answers any questions I have. I would still need to take a course but it's something I think that is totally doable if you want to learn.

I think if you feel confident that you know what to do than I'd give it a try! You can always go back to hiring someone if you don't like it!!

does anybody have a contact for a daycare related accountant in the Ottawa region?

My mom has a daycare and has had one for over 30yrs now. She always did her own taxes and she now does mine. Hers for over 30 years and mine for 6yrs. No problems yet :)

I used an accountant once and he totally screwed me around. I have done my own since, I use Turbo Tax for Home and Business and it is so easy. Oh an I have been in business for more than 20 years and never been audited. If you keep everything status quo from year to year, there are no red flags

I do all my own taxes. My mom made sure that I knew how to do taxes when I was 18 and starting working. She always did theirs with the farm and everything and she still does them now. I use Turbo Tax too. But you don't need to spend the $100 for the Business one, just the standard will do, they have all the same forms. I made the mistake od buying the basic this year but had to upgrade 1 step.

If you have never done your taxes before and don't understand the basic principles of how it is all calculated, it might just be too much to try and do it yourself. But if you have someone who understands it and can help you through, that might help. If you are seriously thinking of doing it yourself, buy the turbox tax software now, it will be for 2014, but whatever, familiarize yourself with it. You won't know until you try it!

I do mine through Turbo Tax. I have financial knowledge, but still I don't think it is that difficult. The only tricky part could be depreciation of larger items carried over following years, but Turbo Tax has great support that I think they could even help you with this.

You can also pay and extra fee there so in case you are audited someone there represents you

I have being running my daycare for 13 years and have always done my own using the Business Turbo Tax and my Husband was audited but not me !!?? and it turned out fine as he did not owe anything
Last year I used an accountant for the first time and I liked the ease of it and will use it him again well worth the $400

thanks so much ladies...i'm going to dive in! Turbo tax style.

$500 is not crazy in the GTA. I have a very good friend of mine who does my taxes and books at the end of the year, and he's awesome. Would recommend to anybody.

Leave the professionals to do your work... Doctors, Lawyers, Accountants, Plumbers, Electricians etc.

They know what they are doing!

I wouldn't go do electrical work if I know how, nor would I go my taxes just because I think I'm smart enough. Sure you might be able to write all the receipts in a book, but I'm sure a professional would tell you what you can deduct and what you can't.

I remember talking to a friend of mine who told me their business has a GST account so I need to have one too.. oh boy, was I wrong when my Accountant told me otherwise. :)

There are lots of things you can diy....it just all depends on your comfort level and extent of related knowledge. Many people are capable at doing more than one job because they've taken time to educate themselves :)

I'm not sure I agree with that.
Yes, my hubby knows how to swap winter tires and do his own oil change but he doesn't have the knowledge for the mechanical items. Why not pay a professional mechanic to do it for you so your car doesn't fall apart and be twice as costly to fix in the future?

I don't try to be a doctor just because I have read medical blogs online either.:o

I agree, some things are better left to the professionals, that's why I said it depends on the extent of your knowledge :)

I know lots of people who are handy in many areas and can thankfully do lots for themselves. I envy them lol. I need to expand my knowledge on too many things LOL

For me I would never attempt to do my taxes by myself unless it was basic. When it is a business there are more things that need to be considered and the rules are constantly changing.

Years ago I sold party lite on the side. My FIL always did our taxes (the farm books and my basic tax return). He was a school principal for 30 years. That year after he did our taxes I decided to take them to an accountant just in case. I ended up getting an extra $200 back through the accountant. Eventually my husband agreed as much as it was great to save money every year, by going to an accountant with up to date knowledge of everything that was claimable made a difference. We managed to pay next to no tax when we quit farming. Our FIL now uses our accountant too.