The challenges in running your business are never-ending. You keep working to meet sales targets. You must adjust to the effects of a changing landscape amid a volatile global economy. There are increased wages, rising business costs, staff issues, plus seasonal slowdowns – the list goes on.
Doing your own business accounting can lead to disaster
Do-it-yourself accounting might just undo your business. It will add extra responsibilities that are outside your alley: tracking finances, managing cash flow, tracking inventory, and understanding and complying with tax regulations.
Business accounting requires establishing an accounting system to carry out sound accounting practices. But it does not stop there. If you manage a small business, you may have limited resources and staff to handle accounting tasks. For start-ups, there is a need to set up bookkeeping and financial reporting processes.
For retail and e-commerce companies, the huge number of transactions require an efficiency in tracking transactions and managing inventory. If a business operates in multiple locations, the financial accounting needs are compounded.
All businesses also need to prepare for financial audits, with those in regulated industries having a higher risk of being audited.
Attempting to do all those yourself could lead to the demise of your business.
Accountants are trained to face your accounting challenges
You may have tried doing an accounting task for your business even if you are not an accountant. You Googled how to do it yourself, caught a webinar or two, and joined a small business support group. Then you realised you were doing it all wrong and had to do it all over again.
Without an accountant, you struggled and wasted time, effort, and maybe money. You went through stressful hours navigating your way in what seemed like a complex multiverse of tax laws and regulations.
All those while trying to hit targets, managing your employees, and in general just keep business afloat. There is a saner way to go about it: Hire a tax accountant or a business accounting firm. Why?
Tax laws are incredibly complex
Australian tax laws can be intimidating and seem complicated to a business owner. The Australian Taxation Office (ATO) and state revenue offices impose at least 11 types of business taxes, including company tax, capital gains tax (CGT), goods and services tax (GST), and payroll tax.
Tax regulations impose different tax rates for different types of income, and different thresholds for the tax rates. Add to the mix the deductions, exemptions, and tax credits that you will need to factor into computing how much tax you owe. There are also several regulations for tax registration, lodging and paying taxes, and policies for keeping financial records.
A business tax accountant will have a thorough understanding of the tax laws and regulations in the Gold Coast. A registered tax practitioner can help you navigate them with confidence. They can also keep you updated about any changes to the laws affecting your business so you can make the necessary adjustments to your business or financial plans.
You want to maximise deductions and minimise tax payments
There are many deductions and credits available that can help you reduce your tax liability, but it might be difficult for anyone to keep track of them all. A tax accountant will have the expertise and experience to help you identify and claim all the deductions that you’re entitled to.
A small business accountant can advise you as regards:
- Optimising depreciation deductions
- Using trading stock rules
- Writing off bad debts
- New tax deduction measures for small businesses
Tax accountants will help you keep more of your hard-earned money while still complying with regulations. This can be especially important if you’re self-employed or run your own business, as there are often a wide variety of deductions available in these cases.
Tax accountants can help you prepare for an audit
Getting selected for an audit can be a stressful and time-consuming process. You will need to:
- Gather all relevant documentation (receipts, invoices, and bank statements).
- Review your past tax returns and ensure that they are accurate and complete.
- Keep records of all correspondence with the Australian Taxation Office (ATO), including letters and notices.
- Be prepared to explain any unusual or large deductions claimed on your tax return.
- Be honest and cooperative with the ATO during the audit process.
A registered tax practitioner can help you prepare for the audit and will be able to represent you during the process. They can also discuss the reasons for the audit and any issues that might have led to it.
With the help of an accountant, you will be able to navigate the audit with confidence and minimise the risk of any penalties or fines.
Avoid mistakes: Hire an accountant
When you hire an accountant to manage your accounting needs, you can focus on running your business. There will also be a better chance that your accounting tasks will be done correctly at first instance, rather than doing a trial-and-error approach – which often leads to costly mistakes.
By getting the services of a business accountant, a business owner will also:
- Save time and money
- Reduce stress
- Do things right the first time
- Confidently be fully compliant
- Possibly pay less tax
- Get help in other related areas
- Get answers to all accounting questions
- Improve business security
Talk to an accountant today
A tax accountant is a valuable resource for your business on the Gold Coast. They can help you navigate complex tax laws, maximise your deductions, and handle an audit with ease. With the help of a tax accountant, you can feel confident that your taxes are being handled correctly and efficiently, so you can focus on growing your business.
If you wish to explore having a professional and experienced tax accounting services provider, be sure to contact a reputable and experienced firm today. Wear Accountants is a 25-year business tax advisor you can trust. We can discuss how your business can benefit from the services of a registered taxation professional. Contact us today for a free discovery session.
