Why Accounting Services are vital for Businesses?
As a business owner, you might agree that dealing with taxes and accounting is drudgery. It can be stressful to sift through paperwork and determine the deductibility of expenses or whether an income type is taxable or not. Along with this, you need to worry about cash flow, tax payment deadlines, and more. One of the best investments you can make is hiring tax and accounting services, so you don’t have to get caught in the busy work.
Here, we’re sharing some information that you may need to know about tax compliance for your business. If you have any queries, you are always welcome to reach out to our team here at Minhas & Co. Our objective is to support your business so you can focus on the processes and systems that will set you up for success in the future.
Hiring a professional team will take the stress off your shoulders. Not only will the accounting team prepare financial statements and lodge your tax returns, but we can also support your business throughout the year with up to date bookkeeping, cash flow forecasting, monthly or yearly budgeting, providing insight on management reports of your business.
Don’t wait until the end of the financial year, before you start working on the preparation for the tax lodgements. The truth is that tax preparation should be happening throughout the year. As transactions come through your business, you need to be tracking the money that is flowing in and out of your accounts. Records are the foundation of a successful tax filing. You need to have these records ready to go when it is time to prepare and lodge your tax return. As a general rule, you need all information related to both income and expenses:
- Sales transactions (receipts)
- Interest from bank accounts
- Any other money that comes into your account throughout the year
Keep in mind that ALL income received needs to be reported. So, make sure that you are keeping detailed records as the business may receive various types of incomes.
At the same time, expenses need to be tracked and verified. While it might seem like a hassle to track every cent that is spent, these expenses can add up to big tax deductions. Not only do you need to know how the money was spent, but you need to be able to substantiate the transaction with documentation, such as a receipt or tax invoice.
- Cost of goods sold
- Marketing costs
- Office supplies
- Business development costs
- Motor Vehicle expenses (log book)
- Travel, including transportation, accommodation, and incidentals
- Fees and commissions paid
- Interest expenses
- Insurance premiums
- Utilities, internet, and phone services
- Repair or Maintenance
- Employee salaries, including superannuation paid
Make sure to hold onto substantiation documents of these expenses, so they are ready in case the tax office choose to audit your accounts.
Do You Need Business Tax and accounting Services?
In the start-up phase, spending on professional accountant’s services might seem like a significant expense, especially if you are pinching pennies to get your new business venture off the ground. But it is worth the investment to hire an accounting team from day one.
Tax and accounting services for businesses give you the foundation needed that will help your business to flourish. A sound financial and accounting system gives you a clear picture of the financial health of your business. This information is vital, helping you see potential areas of growth and other ways you might be spending in the wrong categories. An accountant can help with much more than essential compliance services, which is why it makes sense to start with these services right away.
Our team at Minhas & Co offers help to business owners like you. We have hands-on experience with various tax, accounting, and advisory services, including tax preparation, payroll processing, bookkeeping, and much more. If you are considering the benefits of hiring an outsourced accounting team, then we’d love to have a conversation to see if our services are a good fit for what you need. Call us now to learn more about the options for your business needs: 1300 941 180.