Thinking about hiring a remote accountant to file your tax return?
What to know.
The COVID-19 pandemic has, seemingly overnight, changed the way we live and work. Every facet of our lives has been affected and to some extent, become more digital and online. This includes the annual requirement to prepare our personal tax returns. With tax season upon us, you may be trying to figure out how to get your return prepared by a remote accountant. Here are some key things to consider:
Can a remote accountant prepare my return without ever meeting me face-to-face?
Yes. Like many professional services, meeting your accountant is not required to prepare your personal income tax return. What is required is that you officially authorize your accountant to interact with CRA on your behalf, including the ability to get your personal tax information directly from the CRA website. There is a specific form to do that, which your accountant should provide for you to sign when you begin your relationship. Your signature can be provided electronically, so that you don’t have to meet in person.
Are e-signatures valid for tax documents?
Yes. Many tax authorities around the world, including CRA, have implemented policies to allow e-signatures because of the pandemic. As a result, the CRA will recognize electronic signatures as having met the signature requirements of the Income Tax Act.
How do I get my slips and other information to a remote accountant?
This process will vary by accountant. Some accountants will have only email, or a basic shared online folder, available for you to provide your information. More modern accountants should have some login-based site that allows you to review information and submit documents securely. This can have a big impact on the amount of work and preparation you have to do, yourself. For example, an accountant that requires you to scan all of your slips and upload them is having you shoulder some of the tax preparation burden. Therefore, their fee should reflect that.
How secure is it to send my information online?
It depends. Sensitive tax information, such as any document with your Social Insurance Number, financial account numbers or other personally identifying details should never be emailed (either in the body of the email or included as an attachment). Email is inherently less secure than transferring documents via a secure, login-based website. Also, the location of email servers means your messages may be stored outside of Canada. For example, if you (or your accountant) use Gmail, Hotmail or some other web-based email provider, your messages are likely being stored on the U.S.-based servers of those companies. Likewise, you should never send such information by text message on your phone. It is tempting to snap a quick picture of your document and text it, but this is not a secure practice. The ideal solution is to find an accountant that gives you a secure login to their web-based system for collecting information and that has an established communication process to make sure that all information is shared back and forth in that system.
How Blackspark does it:
At Blackspark, we provide a 100% remote and secure tax preparation service for Canadians and their families across the country. We have a proprietary system that includes electronic signatures and a convenient online process for collecting your tax information securely, while you never leave the comfort of your home. We weren’t satisfied with existing tax software, so we built our own technology to make things easier for you, and us. That gives us more time to spend where it matters - making sure your tax return is prepared properly and giving you the best service possible.
