With the growing number of cloud based accounting software's and their supporting phone apps, small businesses may start to see that their accounting and therefore tax preparation is becoming easier and easier.
Whilst that may be true, often it's the work that leads up to preparing your tax return that adds the most value.
Here are our top 5 reasons why your business should be using professional tax preparation services:
1. Focus on growth
Let’s face it, tax can be pretty boring to most people. We think you should be focused on growing your business rather than working on your taxes. Removing a task that probably isn’t your area of expertise can free you up to focus on the areas that you are good at. If your business is in its early stages then you may also be doing a lot of other tasks such as sales, marketing, product or service delivery, and if this is the case you don’t want to add more tasks to your overflowing pile.
2. Tax law is demanding
There are lots of changes in this space regularly. There are changes to what you can and can’t do, and there are also changes to the regulations and what you are required to do. Keeping on top of this can be challenging and things can fall through the cracks. By having a professional complete this you can be assured that they are going to be across the latest changes and laws and make sure that you are compliant but also that you don’t miss out on any good opportunities.
Related: What Small Businesses need to know about Tax in 2020 Financial Year
3. Deductions and savings
Unfortunately in most cases once the tax year has passed you can’t make changes retrospectively. Therefore there is no use finding out about something you could have claimed or money you could have saved last year if only you had known about it. By having a tax professional working with you, they will ensure that you are making decisions now in your business that can help you come end of the year. There are also lots of opportunities to claim different things or structure your tax in a way that will minimise your liabilities. Don’t do your taxes yourself in the hope of saving money, if at the end of the day you pay more tax because you didn’t know what you could of been claiming.
Related: How Small Business owners can pay less Tax this year?
4. Better understanding
Azure Group completely support business owners having a strong understanding of their business finances and taxes. We have spent years looking at many different businesses and their books and we can see things from different angles. There is often something simple that you might miss that your tax accountant will pick up on. Work with your accountant so that you can grow your financial understanding at the same time.
5. Addressing ATO Concerns
The ATO and their requirements can sometimes be overwhelming, particularly if you are audited. We know how they work and what they require and can guide you through any requests they have.
Related: Received an Audit letter from the ATO? This is what you should do...
What you should look for in a Tax expert?
You should expect a transparent and consultative relationship and support. You should expect to have a catered approach to you and your business. Finally, you need a tax professional who can offer a range of services. Once you have invested time and money into a firm and they know you and your business you may need additional services such as tax planning, bookkeeping or financial advice. Partnering with a firm that is commercially minded and tax savvy can add significant value to your overall business and accounting functions.
Have you noticed our #FridayExpertTips... here's one that relates to #Tax
"The golden rule: keep records! Good record keeping is your best friend for efficient business management and will also make life easier if the ATO ask you questions."
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