Posted on: 10 February 2021
A common misconception among startups and small business owners is that they can take care of their own accounting needs. However, unless you have a background in accounting, staying on top of things requires professionalism. If you do not engage a professional accountant, you risk unnecessary issues and challenges that might slow down business growth. This article highlights ways that small businesses can benefit from using small business accountants.
Keeps Donations and Contributions Paperwork
The community expects a lot from business entities. For instance, small businesses are occasionally expected to contribute or make donations towards social initiatives. The contributions and donations might seem inconsequential to a layperson: however, an accountant understands that donations are 100% deductible. Therefore, business owners can exploit the avenue to save money and grow. That said, the Australian Tax Office only pays out deductible claims for transactions backed by receipts. An accountant will keep the receipts and claim the appropriate deductions on your taxes. Moreover, keeping such records eliminates the possibility of overseeing details, particularly for small businesses without established accounting procedures.
Helps Fulfill Your Tax Obligations
A small business or a startup needs to think carefully about tax obligations way before the tax season. The sooner you hire an accountant to look at your financial records, the better. Most importantly, an accountant needs enough time to peruse every financial document in your possession to ensure that you pay the right amount of tax. An accountant can also help a small business to discover various ways of maximising deductible claims and improving cash flow. Lastly, timely preparation of current P&L (profit and loss) statements makes it easy to file accurate tax returns in good time. It goes a long way in avoiding hefty fines associated with late filing, which could have a significant impact on your financial position.
Triple-Check Records for Accuracy
Small businesses cannot afford to be inaccurate with their accounting. The only way to guarantee growth is ensuring that records are as accurate as possible. Even small business owners with an accounting background are advised to hire an accountant for accuracy reasons. It is easy to overlook some accounting items when preoccupied with other aspects of business operations. Since an accountant's sole role is dealing with business data, they will dedicate all their time and effort towards ensuring that everything is accurate. It prevents the filing of inaccurate returns and penalisation by the Australian Tax Office.Share