It’s no secret that running a small business is hard work. From keeping on top of paperwork and regulations to managing cash flow and chasing invoices, there’s a lot to stay on top of. And that’s not even mentioning the actual work of running your business!

One thing that can make a big difference to the success of your small business is having a good tax accountant. A good tax accountant can save you time and money by taking advantage of all the tax deductions and concessions and ensuring your tax returns are lodged correctly and on time.

The benefits of having a tax accountant

As a small or medium business owner in Australia, you have a lot to care about. From managing day-to-day operations to keeping up with the ever-changing tax laws, there’s a lot to stay on top of.

One way to ease the burden and give yourself peace of mind is to hire a tax accountant. A tax accountant can help you navigate the often-complex world of tax, ensuring that you stay compliant and maximise your deductions.

There are many other benefits of having a tax accountant on your team, including:

1. Save time – A tax accountant can save you significant time by taking care of your tax obligations. This frees up your time to focus on running your business.

2. Save money – A good tax accountant will save you money by helping you maximise your deductions and ensuring that you pay the right amount of tax. This can add up to significant savings over time.

3. Reduce stress – Tax-related stress is common among small business owners. A tax accountant can take a lot of the worry and stress out of tax time, leaving you free to focus on other aspects of your business.

4. Peace of mind – Knowing that your taxes are in good hands can give you peace of mind and allow you to sleep better at night. Having a tax accountant on your side can provide valuable peace of mind.

The different types of tax accountant services

Different tax accountant services are available, and each service offers different benefits to small businesses. Here is a rundown of the most popular types of services:

Accounts preparation: This service includes preparing and lodging your annual financial statements and tax return. An accountant can also help you with other financial statement reporting such as ASIC, ATO or bank compliance reports.

Tax planning: This service helps you minimise your tax liability through legal and strategic tax planning. An accountant can help you with strategies such as salary packaging, negative gearing and tax-effective investments.

Asset protection: This service helps you protect your assets (such as your home, car or investment property) from creditors if your business cannot pay its debts. An accountant can help you set up trusts, companies and Self-Managed Super Funds (SMSFs) to achieve this.

Succession planning: This type of service helps you plan for the future of your business by succession planning. An accountant can help you establish family trusts, business agreements and buy-sell agreements to ensure that your business is passed on to your chosen successors in the event of your death or incapacity.

These are just some of the most popular tax accountant services available. Be sure to discuss your specific needs with a qualified accountant to ensure that you get the best possible service for your small business.

The importance of choosing a reputable tax accountant

As a small business owner in Australia, choosing a reputable tax accountant is important to help you with your financial affairs. There are many reasons why this is the case, but the most important one is that a good tax accountant can save you much money.

A tax accountant can help you to maximise your deductions and minimise your tax liability. They can also help you to structure your business in such a way that you pay less tax. In addition, a good tax accountant will be up-to-date with the latest tax law changes, saving you time and money.

Choosing a reputable tax accountant is therefore essential for any small business owner in Australia.

How a tax accountant can help you save money

As a small or medium-sized business owner in Australia, you are no doubt always looking for ways to save money and improve your bottom line. One way you can do this is by ensuring you claim all the deductions and tax rebates you are entitled to. This is where a tax accountant can help.

A tax accountant is a qualified professional who can help you to identify all the deductions and rebates you are entitled to. They can also help you complete your tax return correctly, ensuring you don’t miss any important details that could cost you money.

While you may be tempted to try and save money by doing your taxes, this is often not the best idea. A tax accountant has the experience and expertise to ensure you get the best possible outcome on your taxes, saving you both time and money in the long run.

The different tax laws in Australia

There are many different tax laws in Australia, and it cannot be easy to keep up with them. As a small business owner, it is important to ensure that you comply with all relevant laws. A tax accountant can help you to ensure that you are paying the correct amount of tax and can also help you to claim any deductions or exemptions that you may be entitled to.

The different types of tax returns

There are four main types of tax returns for small businesses in Australia:  

1. BAS – Business Activity Statements  

2. IAS – Installment Activity Statement  

3. Taxable payments annual report  

4. End-of-year tax return 

BASs are used to report and pay GST, PAYG instalments, wine equalisation, and luxury car tax. You must lodge a BAS if you are registered for these taxes.

IASS is used if you have a GST turnover of less than $20 million and you elect to pay your GST by instalments. 

The annual taxable payments report reports contractor payments made by businesses in certain industries. The report covers contractors’ payments for building and construction, cleaning, courier services, road freight transport and IT services. 

Your end-of-year tax return calculates your income tax liability for the financial year. This return is lodged with the ATO annually.

The importance of filing your tax return on time

Filing your tax return on time is important for several reasons:

  1. It ensures that you are compliant with Australian tax law.
  2. You will avoid any penalties or interest charges applied if you file late.
  3. It gives you a better chance of getting any refunds you may be entitled to.

If you are a small business owner, filing your tax return on time is especially important. This is because late lodgements can trigger an audit by the Australian Taxation Office (ATO). An audit can be time-consuming and stressful, so it is best to avoid it if possible.

Suppose you are unsure how to lodge your tax return or need help calculating your tax liability. In that case, it is a good idea to seek professional advice from a qualified SME tax accountant. A tax accountant can help ensure that your tax return is lodged on time and that you maximise your chances of getting a refund.

The consequences of not filing your tax return on time

You may have to pay the penalty if you don’t file your tax return on time. The amount of the penalty is based on how late you are in filing your return and whether you owe taxes or are due a refund.

If you owe taxes and don’t file your return on time, you’ll generally have to pay a late-filing penalty of 5% of the taxes you owe for each month (or part of a month) that your return is late to a maximum of 25%. If you file more than 60 days late, the minimum late-filing penalty is $135 or 100% of the taxes you owe (whichever is less).

There is no penalty if you’re due a refund and don’t file your return on time. However, if you wait too long to claim your refund (generally more than three years), you’ll forfeit it entirely. So even though there’s no penalty for filing late when you’re due a refund, it’s still in your best interest to file as soon as possible.

By Manali