Why You Should Hire Accountancy Services to Handle Corporation Tax
Mismanaging your own accounting system can put your business at risk now and in the long run. This is something we all want to avoid. Doing it yourself can be done only if you have a concrete understanding of business finances and have an accounting background. However, while this may be possible, it’s still valuable to hire a tax accountant or get an accounting service to handle your taxes.
The Process of Starting Up
You need to take countless actions and set up systems to build the foundation of a winning business. An accounting service can help you by:
- Helping with your financial analysis
- Deciding the most appropriate structure for your business (e.g. corporation, LLC, partnership and sole proprietorship) based on your situation
- Providing information and recommendations on what type of accounting software you might need
- Offering assistance and advice on opening your business bank account.
- Giving advice on how you can track expenses during your everyday business operations
- Emphasising the importance of keeping your business and personal expenditures separate.
Day-to-Day Business Activities
Once your business sets in motion, an accountant can assist you on a regular basis through the following:
- Providing detailed explanation about your financial statements so you’ll know the nuts and bolts of your business
- Making sure that you have independent contractors classified by ATO (the Australian Taxation Office)
- Managing your company’s payment and payroll processes
- Giving advice and information regarding the estimated tax payments you need to do during the year
- Knowing to whom and when you should send your tax forms
- Creating financial reports and wrapping up your books by the end of the year
- Collating and submitting your financial reports, tax and other essential paperwork to the ATO.
Business Development Stage
An accounting service can be a vital resource that can provide you with advice and help you supervise the process when you’re ready to improve your business. Here are some of the things an accountant can help you with:
- Determine areas for growth by providing solid details on inventory management, business financing, pricing and cash flow patterns.
- Provide tips on equipment and property purchase and leasing.
- Prevent you from getting audited by the ATO.
- Build financial forecasts so you can have better business decisions.
- Guide you through an audit, if needed.
- Work alongside you to create a business budget that will aid your business objectives.
- Provide resources to guide you with your business’ sales.
How Much Will It Cost for a Tax Accountant to Do Corporate Taxes?
Pricing structures differ in every accounting firm or small business tax accountant as some charge you by project, by the hour or on a monthly basis. The hourly rate of tax accountants in Melbourne is based on their level of expertise and experience. The usual hourly rate is around $100 (AUD) to more than $300 (AUD) for a tax accountant with extensive experience.
The cost of accounting service is based on how often you utilise the service. Hence, it will vary according to your circumstances. A tax return for a simple single trader can cost around $300 and $500 (AUD). Depending on how complex the business structure is, the costs increase.
Furthermore, the more complicated your business is, the more expensive company tax return you will pay (often starts at $1,000). Business activity statements start from $200 every quarter for a sole trader and more for a partnership, trust or company.
When Is the Right Time to Hire a Tax Accountant?
Dealing with lots of government paperwork can be really stressful when you’re managing a company. This is why many business owners hire an accounting service when doing business taxes. You may be eligible for certain tax deductions, and your tax accountant can tell you which ones to take in order to save you big time on taxes. They will also give you an idea of how much you owe.
Hiring a tax accountant is also recommended if your situation falls under the following.
- Owning a Rental Property
If you own a rental property, as a landlord, why not maximise your profit? Take advantage of the tax deduction available. Hiring a tax accountant is helpful in this aspect as they can inform you which deductions are applicable to you. Primarily, you can also make deductions with real estate taxes, depreciation, insurance premiums and repairs.
- Forecasting a Cash Flow
One of the most common causes for a business to fail is cash flow. It is considered the lifeline of businesses. A tax accountant can put together a forward-looking forecast that will help you plan better in case of shortfalls and identify if you’ll need a loan or increase your equity finance. This also serves as a feasible way to set financial goals and determine the future of your business.
- Losing Control of Your Finances
If your expenses are skyrocketing and you’re uncertain about it, probably profitability hasn’t changed yet sales are increasing. That said, an accountant can check your financial reports, measure metrics and create emphasis on areas you can cut costs or create more productivity. They can also look at how your debt is formed and make advice on when to reinvest, what’s owed and when to make repayment.
How Malkoun & Associates Can Help You
Hiring an accounting service to do your corporate taxes is, with no doubt, crucial. They can help set your business in the right direction financially speaking.
At Malkoun & Associates, we are focused on keeping you happy. We strive to achieve this for the resounding success of your company.
Our clients and our people are our business. We do not work for clients, but work with clients in achieving all their goals and dreams. So, if you’re looking for a competent tax accountant in Sydney, don’t hesitate to call us at (02) 8626 7562.