Choosing the Right Accountant for Your Small Business: Do You Need a Chartered Accountant?

Hi, I am not sure if this is the right forum for an accounting question, but I looked around on the internet for accounting forums and could hardly find any.

Question About Hiring an Accountant for a Proprietorship

I have a small interior design business under Proprietorship. I have managed to get a Service Tax number for my company. I am looking for an accountant to file my taxes as my previous accountant took advantage of me. When looking for one, do I need to hire a Chartered Accountant, or can I choose anyone that files taxes, considering that I now have a Service Tax number?

Most salaried employees have their taxes filed by people who are not necessarily Chartered Accountants.

Thank you.

Understanding Tax Filing for Salaried Individuals and Businesses

Salaried people file returns only for salary income, i.e., INCOME TAX RETURNS. I am an accountant and knowledgeable about service tax. There are frequent changes happening in service tax rules, and unless you keep yourself updated about the rules, it will be hard to file returns for service tax. Also, we have to consider Advance Tax, Adjustments, Cenvat Credit, and ensure that they are properly accounted for. Hence, many people outsource such tasks to an agency that takes care of the entries. Alternatively, if you have fully automated software that calculates service tax automatically, then it won't be a problem. For example, in restaurants, the bill is paid instantly, so service tax collection and submission are straightforward. However, in companies, there are factors like Cenvat credit, advance tax, abatements, notifications, etc.

Steps to Manage Your Tax Filing

The best approach is to understand the nature of your work. If it is a simple process, consider taking necessary training from a Chartered Accountant (CA) or an agency in your city. This way, you can learn to file taxes on your own. Keep in mind that interest may apply for the first time.

Regards

Mr. Ravi, thank you for your advice. I don't think I would do it myself. I want to get a professional to file my taxes. But my question was, do I need a Chartered Accountant or anyone that files taxes? Thanks once again.