Small business owners have too much to worry about at the turn of the financial year.
That’s why outsourcing an accountant to help you with both your corporate and personal tax returns can take a load off your work levels, stress levels, and mental health.
Importantly, it also gives you more time to focus on what your business will be doing throughout the next financial year.
Why should you outsource your accounting?
Are you looking for a tax return accountant in Melbourne?
Accounts are trained and qualified professionals who can put together and submit your tax returns for you.
Business owners are always busy at and outside of work. So on top of having to do the taxes for your business as well as your own personal tax return, it’s best to outsource accounting work to your accountant to do them for you.
By outsourcing to an accountant, you can focus your time on all the other aspects of a business, especially around the end of the financial year such as cash flow and financial budgeting for the next financial year.
What is an outsourced accountant?
An outsourced accountant is an accountant working in a firm, whose sole purpose is to help people and small businesses with their tax returns.
Bruce Edmunds is a firm that specialises in the tax returns of small businesses and personal taxes. Outsourced accountants see your records in the most objective way so that they can lodge them properly.
Small business tax accountants have a full understanding of how lodging taxes work in places where you may have gaps of knowledge.
There is a lot of information you will need for filing taxes.
What information do I need to give my accountant for taxes?
For personal taxes, some of the following information is generally required by the accountants:
- Previous tax returns
- Proof of expenses
- Wage information
- Group certificates
- Information of employer
What documents are needed to file corporate taxes?
You will also need the above information to file your corporate tax return, plus:
- Asset information
- Shares and loans
- Financial statements
- Previous year’s tax return
- Expense records
We break down each of these corporate-specific requirements below.
You’ll need to show your assets such as if you own the building you work on.
You also need to show capital gains from any assets sold over the past year.
Capital gains tax advisors work within the accounting sector so they can assist you if you have more questions about this.
Commonly referred to as stocks in the US, shares can provide the accountant evidence that you know how to distribute money and create the according dividends.
Interest bearing loans – also known as deposits or bonds – if you have any, will be needed. We will also require loan agreements.
You also need to provide information of loans you’ve received for the business, such as Government incentives.
Financial statements can include anything from payroll data, inventory total, profit and loss reports, balance sheets, statement of cash flows, income records, bank statements, deposit slips, sales invoices and health insurance.
Previous year’s tax return
You will need to show a track record that you have been running a business by the book.
You need to show expense records and these can include car use, home office expenses, bills, bank statements, credit card statements and travel expenses.
If you’re already stressed with the abundance of information, remember, your bookkeeper will be able to help in providing this information. It might not also all be relevant depending on your business.
Other things you might need to include that may or may not be relevant to your business are:
- Donations to charities
- Rent payments
Do I file my business taxes and personal taxes together?
Bruce Edmunds does both personal and corporate taxes. Since both taxes are different bodies you can use the same firm to do both – and in fact, reviewing them together can help with better tax planning.
For example, we can provide advice to the client on how much dividend the company should pay to the shareholder, which in effect, can impact your personal tax return.
What benefits might your organisation gain from outsourcing basic accounting functions?
When doing your business tax return in Melbourne, there is a lot you can miss which can lead you to missing out on returns. Tax compliance work is complex and time-sensitive.
Accountants make sure all relevant documents are present so that the forms can be lodged properly to maximise the amount of money you get back.
Running a business is different from how it was twenty years ago, and it continues to get more complex.
With a lot of businesses being online and having domestic and international customers on top of constant new tax laws in place, tax accountants are always up to date with the current business and tax climate.
Do I have to file taxes for my small business?
It’s a legal obligation for all businesses to lodge taxes.
Even if you are self-employed and have just started your own business, you must file taxes.
Refusing to do so can lead to fines and other penalties.
It’s good to use an accountant if you’re self-employed because we can make sure you don’t tread over any useful information.
Tax scam are strife during the financial year so if you don’t file your taxes you could be vulnerable to phishing emails or scam calls asking you to do your taxes.
If you submit your taxes, you will know for sure that any subsequent calls asking you to do so are a scam.