In a single word, the answer is “yes!”
A lot of small businesses assume that they “do not need” an accountant, that they’re small enough and their finances are straightforward enough to do on their own.
Unfortunately, this way of thinking often ends up becoming the downfall of many businesses as they find themselves struggling with the time and effort in managing accounting work, making mistakes and losing valuable time in trying to fix those mistakes..
It doesn’t matter what your small business does, or what industry it’s in – it’s important that you have a business accountant in Melbourne by your side.
Finance is the language of business, after all. When it comes to making decisions, planning and evaluating your business’ performance, a good grasp of your numbers is absolutely crucial.
And for that, you’ll need an accountant’s help.
Do I need an accountant for my small business? Does every business need an accountant?
Most small business owners assume that the only time they’ll need to get in touch with a professional accountant is during tax time, in the lead-up to a major decision or when they’re still getting set up.
While there are some businesses that can operate like that, most others will need to talk to their accountants on a more regular basis. Make no mistake, an accountant can help you in many more ways than just that.
If you ask us, a better question to ask is not whether you need an accountant, but how much you need an accountant.
All businesses will need a professional during the set up of a business structure, as well as a tax accountant in Melbourne when it’s time to file a business tax return.
What accounting services do small businesses need?
While you might only see your accountant once a quarter or before making a big financial decision, there are plenty of other times when your accountant’s knowledge and experience can be a major boon.
- Formulating a business plan
- Taking stock of your overall financial position
- Creating budgets and forecasts
- Calculating break even points for new products and services
- Submitting BAS and IAS lodgements
- Meeting your monthly compliant requirements
These are just some of the services a small business accountant can offer – depending on your circumstances, you might only need a couple of these services or all of them. It all comes down to your business’ needs.
Whatever you do, don’t just assume that the only thing we can do is quarterly and annual reports!
Accounting vs bookkeeping
A lot of small business owners mix the two up – while there’s some overlap in what they do, the two are actually different professions who help look after your business’ financial wellbeing in different ways.
Think of it this way:
- Bookkeeping is all about the past, and recording what has happened
- Accounting is all about the future, forecasting what comes next and creating plans accordingly
The two work closely together to help your business succeed – accounting relies on bookkeeping records to make its forecasts and plans.
However, it’s important to remember that they’re two different professions. When it comes to financial advice regarding business expansions, major purchases and investments or a new growth strategy, you’ll need an accountant, not a bookkeeper. You can’t rely on your bookkeeper to do an accountant’s job!
At Bruce Edmunds, our accountants work closely with your bookkeeper, and have a strong working relationship with the good people at Maximum Business Solutions which allows us to provide businesses like yours with comprehensive service.
How do small businesses keep accounts? The best accounting software for small businesses
By providing a diverse range of different accounting services, our team of accountants in Bayside are able to meet all of your accounting needs, whatever they may be.
Of course, as a small business owner, you’re probably keen to find ways to keep as much of this in-house possible.
Luckily, that’s something we can help you with as well!
Whether it’s recording sales data, tracking inventory or keeping tabs on revenue, good record-keeping is crucial. While normally the responsibility of a bookkeeper, that doesn’t mean that we can’t help you here.
Our business accountants can get you set up with a cloud-based accounting system such as Xero, MYOB Essentials and QuickBooks to make your record-keeping and accounting:
- Faster and easier
- More accurate
- Accessible remotely
Syncing with your bank accounts and POS/inventory systems, and with a range of optional extras, our team can set you up with a system that makes your records more accurate and your accounting easier for both us.
Each has its own features, as well as its own strengths and drawbacks. Thanks to our experience with these, our team will help choose and implement the system that works best for your needs.
Do I need an accountant to do my taxes?
Do I need an accountant to do my tax return?
While not mandatory, we strongly recommend it!
The reason is simple: the tax law is complicated, with countless exceptions, allowances and benefits hidden in it. What’s more, it is constantly changing!
If you want to ensure that you are fully compliant with the tax law, you’ll need a tax professional’s assistance, who knows the tax system inside-out, and who keeps up with the most recent changes.
While there are some business owners who are plugged-in and who understand all of this, most just don’t have the time or energy to keep up with all of it.
Luckily, it’s our job to keep up-to-date with this!
Who needs to submit BAS? What kinds of business are required to lodge the BAS
While your annual business tax return might be scarier, for most businesses, it’s their BAS and IAS lodgement that actually makes up most of their interaction with the ATO.
As we’re sure you’re aware, any business that’s registered for GST will need to lodge a BAS or IAS to record GST collected and paid, as well as PAYG Withholding and Instalment owed.
Do you make a GST income (gross income minus GST collected and non-cash payments) of $75,000 or more per annum ($150,00 for charities and non-profits?)
If so, you fall into this category, and will need to lodge these statements.
While these are much easier than your business tax return, they can be time-consuming and errors can be made easily. Fortunately, our BAS and IAS accountants can help you out by taking these off your hands.
How often is a business required to complete a BAS?
While a handful of small businesses lodge their BAS annually, most businesses are required to lodge their BAS or IAS quarterly or monthly.
Yes, an accountant is necessary for a small business
Even if you only see them periodically, it’s always good to have all that advice and knowledge on tap and ready to go whenever you need it.
Of course, it’s important that you get good advice – and for that, you need a good accountant on your side.
There are countless accounting firms in Melbourne – among those however, few have the long history of Bruce Edmunds & Associates.
We might not be as big as the Big 4 Accounting Firms, and frankly, we’re completely happy with that. We find it much more satisfying to build up small and medium businesses in our local community.
Since 1966, our team has helped businesses just like yours, expanding our portfolio of services to cover as many different types of businesses and industries as possible.