As your finances start piling up, it can become difficult to keep track of everything, whether you have a family or a business. This is where a personal tax specialist is useful. While their primary job is to ensure all your taxes and finances are in order for the yearly tax return, there are numerous other benefits to working with a tax accountant. In this blog, we’ll be explaining these benefits, and why you should consider utilising the expertise of a tax accountant.
Tax accountants for individuals and families
For individuals, meeting with a tax accountant generally only needs to happen once a year (usually before taxes are due). During this time, an accountant will help you make the most of your financial situations. This means going through your yearly finances with you and organising everything so that it complies with Australian tax laws.
Some of the services offered to individuals and families by tax accountants can include:
- Income tax return – Organising your yearly tax return based on the income you’ve received throughout the financial year.
- Instalment Activity Statements (IAS) – If you are not registered for the goods and services tax (GST) but you deal with pay-as-you-go (PAYG) or PAYG tax instalments then you are required to fill out an IAS.
- Trust annual returns – If you are the trustee of a trust then you must lodge a trust return.
If you have a family then your financial needs will be significantly greater than that of an individual. This is because there are multiple people to manage financially, as opposed to a single individual.
This is where it is cost-effective and timely to hire a tax specialist. Personal tax accountants can also give you advice and lend assistance when it comes to investments or other complicated financial issues that may go beyond the yearly tax return.
Tax accountants for small businesses
If you’re running a business, then it is imperative that you hire a tax specialist. When running a business, you will be dealing with more complicated financial situations in comparison to someone who does not own a business.
Some of the financial tasks a tax accountant can provide to small business owners include:
- Profit and loss reports – These entail your company’s expenses and profits over time.
- Balance sheet reports – Reports that detail your assets, liabilities and net equities.
- Statement of cash flow – This document details how money is coming in and out of your business.
- Accounts payable/accounts receivable reports – How much money is owed to your company as well as by your company.
- Depreciation reports – A summary of how valuable your company owned assets are.
When it comes to finances, a simple mistake could mean the difference between a loss or profit for your business, so you need to ensure you have someone who has the experience and knowledge to handle the task. This is where hiring a tax accountant will save you time and money.
Tax accountants offer a variety of services for small business, one of which is long and short-term trading and cashflow forecasts. This will allow an accountant to go over your cash flow and predict the best ways to improve it in the future, minimising your losses and maximising your profits. They also are able to analyse and collate your financial data into an easy-to-understand format.
Tax accountants can also assist in filling out Business Activity Statements (BAS) for small business owners. A BAS is automatically sent to you by the government if you have an Australian Business Number (ABN) when it comes time to lodge your taxes. These statements report your:
- PAYG instalments
- PAYG withholding tax
- Any other taxes
As mentioned in our previous blog post, when buying a business, you should also always have an accountant review the information to make sure everything is in order and translate the financial facts of the purchase to you.
From a business owners’ perspective, a tax specialist is not only there for you when it comes time for tax returns, but most times of the year. The deep knowledge that tax accountants have acquired over years of experience gives them a very keen and specific insight into how businesses operate financially.
Their advice is invaluable, and they are able to share ideas and strategies that can help improve your business, from the finance upwards. In addition to this expertise, having assistance with your finances will mean that you can enjoy peace of mind knowing that everything is on track for success.
Work with an experienced tax accountant
Silverdale Consulting Group proudly provides tax specialist services for businesses and individuals. With more than 40 years of experience and knowledge in the accounting and finance industries, we are well-equipped to help you take control of your finances.
If you would like to find out more about our Melbourne-based services, please give us a call on (03) 9497 5885. Alternatively, you may fill out our online enquiry form here.