Paying taxes or filing for a tax return can be a daunting task. It becomes more overwhelming as your business grows bigger. You may attempt to do this on your own. However, the chance of having large discrepancies at the end of a fiscal year is always high. Why not save yourself all the stress by working with our certified accountants in Newcastle?
Understandably, businesses—particularly small businesses—are always conscious of the way they spend their money. For them, hiring an accountant is a luxury they simply cannot afford. What many people do not know is that tax accountants in Newcastle do more than fill forms and help businesses resolve their tax problems. They can give valuable advice that can save you thousands of tax dollars and facilitate the growth of your business. However, hiring a sound accountant is the only way you are certain of getting the full benefits of having an accountant in your business.
Six benefits of having a tax accountant in your business
Every business is unique. Therefore, the benefit of having small business accountants can vary from one business to another. In other words, some businesses may find them more favourable than others. Below are some of the benefits of hiring a tax accountant.
1. Saves time
The most valuable asset of every business is time. Hiring business accountants in Newcastle frees up your time so that you can focus on running the business while the accountant takes over the paperwork. Also, there are deadlines for filing taxes.
An employee with a designated tax role will easily remember all the deadlines. But, if you decide to do it on your own, you may miss deadlines because of competing goals in your head. Of course, the Australian Tax Office (ATO) charges fines and penalties for missed deadlines—and you can’t afford to be paying hefty fines all the time.
2. Get tax deductions
Do you think that hiring an accountant is expensive? Well, the upfront fee you pay to hire an accountant is often neutralised by the tax deductions and waivers they attract to your business. For example, an accountant knows ways to operate to attract tax deductions from authorities. By studying your business, they will be able to advise you on tax-efficient ways to go about your daily activities. This helps you to retain most of your profits. The result is that your capital grows exponentially over a short period.
3. Trusted advisor in growing your business
Small businesses come across opportunities now and then. Most times, they commit financially without proper analysis. Your accountant can help you to analyse any opportunity to know if your business is financially prepared to take the risk. Business owners see their business as their babies. They are always eager to see their business grow. However, this desperation often leads to low objectivity in thinking. A trusted accountant can also advise you on investments and expansions, including hiring new employees.
4. Organising your business
For big businesses with many employees, business accountants in Newcastle can help to keep things organised. Since accountants are familiar with the payroll system, they can ensure prompt payment of employees. Also, their knowledge of budget planning can prevent the business from unnecessary extra-budgetary expenses.
5. Access to valuable tax information
The tax code is set up to benefit businesses more than individuals. The reason is that businesses create jobs and serve as government partners in job creation. The tax code is complex. Therefore, you are bound to miss out on some of the tax benefits reserved for businesses due to your inability to interpret these codes. The tax code changes now and then. This is one of the reasons you need tax accountants in Newcastle to keep you updated on the changes.
6. Keeps you focussed
Running a business is hard. It becomes harder if you have to be thinking about internal and external financial obligations. If you focus too hard on financial matters, you can lose track of other aspects of running your business. Having an accountant can help you free up that time and energy so that you can invest it in other areas of the business, including marketing, board meetings, employee relations, and so on.
Other valuable benefits of hiring a tax accountant
One of the reasons why some businesses think they don’t need an accountant is because they are often underutilised. Small business accountants do more than filing quarterly or yearly taxes. They will prove their worth in various other areas of the business, including;
The best way to monitor if your business is growing or retrogressing is by looking at the financial report. Huge figures often make no sense unless they are organised into easy-to-read reports. When this is done monthly rather than yearly, it is easier to catch outstanding invoices. Since businesses are always chasing after client money, it is easier to go after payments that are one month or a few weeks later rather than payments that are up to eight weeks late.
Business tax deductions
According to the Australian government, you may be able to claim tax deductions for some type of business expenses. This includes home-based businesses, business travel expenses, motor vehicle expenses, worker’s salaries, wages, and contributions, etc. If you run a home office, you may qualify for the home-based business deduction. However, for that deduction to be legitimate, your home office should not be used for any other purpose. These sorts of information make you appreciate having accountants in Newcastle. While it is not your duty to know these things, an accountant will and make sure your business enjoys full tax deductions where available.
Incorporation of a business
Perhaps, you have heard of C-Corp, S-Corp, and LLC. So, how can you tell the best for your business when you are planning your incorporation? Skilled tax accountants will discuss your business objectives and circumstances to recommend the most beneficial for your business. Some will go to the extent of filing forms on your behalf to ensure the forms are filled correctly. Incorrectly filled forms can lead to unnecessary delays in the completion of incorporation.
When you should hire a tax accountant
An individual filling a single income and payroll tax reporting form may not need a tax accountant. However, some situations may require you to hire a tax accountant. They include;
1. If you have a side hustle
With the guidance of an accountant, you will know if you are supposed to pay tax on your side hustle.
2. You suddenly own property through inheritance
Transfer of a property through inheritance is ecstatic. However, it can complicate your tax problems. Such acquisition can open you up to capital gains tax, inheritance tax, or estate tax. An accountant will help you to determine your debt as well as lower future tax liabilities.
3. Change in a family situation
The divorce or death of a partner can leave you in a complex tax situation—especially if your partner was the one handling all the tax records.
The ATO can contact you for various reasons. However, it is always a smart idea to hire a tax accountant to help you resolve whatever the situation may be. Why pay hefty fees for defaulting on your tax when you can avoid them altogether? The earlier you bond with a dependable accountant, the better for your business.