Tips for accounting in Melbourne to keep the books balanced

Accounting plays a crucial role in businesses of all sizes; however, it is of less priority for small business owners. Although it’s a matter that fetches less attention, it must never be treated as an afterthought.

In case things get tougher, the right accounting could assist you to save your business. In this post, we’ll put the best and proven tips by small business accountant Melbourne to keep the books balanced by avoiding the mistakes that could be detrimental to your business. 

·       Keep an eye on Cash Flow

When it’s all about small business accounting tips, education is everything. Consider producing a cash flow statement, as you perform weekly or monthly financial reviews. Such statements give you a complete understanding of cash movement within the company. A cash flow statement analyzes the income direction. It also involves an element of time, enabling you to visualize the payment cycles and seasonal expenses.

Cash flow statements may provide you the knowledge you require to anticipate expenses and allocating income. These are also quite useful in building financial trajectories. Your small business accountant Melbourne can do this for you.

You don’t have to generate a cash flow statement but in order to understand monetary motion. Just make use of an efficient technology that may get a holistic vision of the method in which the cash is functioning in the business model.

·       Record the cash expenses

It is important for you to track the expenses that are related to your business. This is the way these costs could be eliminated from the amount of the total income when it’s all about doing taxes. 

This will provide you more accurate and efficient sense of overall profitability for the year. It is quite easier to look at expenses paid for in cash. You must ask for the receipt from your vendor or log the expense immediately to assure that it makes it on the books.   

·       Understand the difference between Receipts and Invoices

Mixing up receipts and invoices is a common way for small business owners to manage their books. To follow the difference between the two is the simple piece of accounting advice by tax return accountants. After receiving the services, the invoice is the bill that is sent to the customers.

These are the detailed bills that must outline everything that the customer has received from the company.  The invoices remind the customers that they owe you money. They are also helpful for speeding up the cash flow, ensuring you are getting paid and keeping the financial records.

A receipt shows the proof that the transaction has happened and it is what you provide your customers after the transaction gets over.

When the receipts and invoices get mixed up, it makes accounting in Melbourne a nightmare. You cannot mention what’s completed and what’s still in progress. When you need to balance your books, you will just be landed in a lot of trouble.

 

·     Leverage Technology

It’s a quite complex process to keep the accounts accurate. The whole process even becomes more stressful with the growth of your business. A single transaction may make distinct entries into different accounts. It will be overwhelming to keep a record when there are numerous such transactions.

Here comes the assistance of technology. The accounting systems are quite easier to use than recording each transaction that your business makes into physical ledgers.

If you took the decision to make use of software for such accounting requirements, assure you still keep a copy of all such receipts either digitally or physically. In this manner, you may go back and analyze everything in case of any discrepancies when you need to balance your books. 

·        Communication with your tax return accountant

It is quite crucial to make clear contact with your tax agent Melbourne or small business accountant Melbourne to manage your books. While working with such professionals, you may notice the jargon is quite confusing. It is significant to let them know if you don’t understand the terms that they use. Obviously, you are an entrepreneur and not a financial professional.

You have no reason to be informed of the latest technology terms that are used in the financial industry. You must view your tax return accountant and other accounting professionals as a part of your team. They are responsible to watch your back and giving you some accounting tips that you may bank on.  

Hire a Professional

Some people try to save money by just doing their taxes on their own. In reality, not hiring a professional may cost your business a lot of money down the road.

The tax return accountant at Reliable Accounting Services stays up-to-date with the changing tax laws so that you may plan ahead for tax hikes that could be coming your way in the future.

We can prove ourselves as the best tax agent Melbourne by working efficiently for your business. We claim that we are the topmost result of your search “tax accountants near me”. 

Top Reasons Your Tax Return Accountant May Face Delay In Tax Refund

 When you expect a tax refund, the last thing you intend to do is to show up. The turnaround time for the tax return processing has been speed up enormously over the years especially since the IRS electronic filing or e-file system has been introduced. Most of the tax returns in accounting services are processed within three weeks with the filers getting the funds sooner. Now days the burden to avoid delays lies on the taxpayer. Some simple errors or oversights could lead to a delay of the tax refund such as:

·        Filing tax return that is not complete

One of the common causes of delay in processing of tax return is the incomplete information on the return. As per the renowned IRS agent, “Inability to include basic data, like Social Security numbers of dependents, might hold up the refunds”. Failure to include the copies of W-2 or 1099 forms enhances the processing time, just like the missing forms or schedules.

When you make use of TurboTax for the preparation of your taxes, you will take into account some common errors before filing.

·        Computation errors on the tax return

The tax codes could be complicated with certain exceptions especially circumstances, and phase-outs of deductions, credits and exemptions. It is of no surprise that returns prepared manually include many errors. The common calculation errors include the taxable amount of Social Security income, taxable income and the Child and Dependant Care Credit.

Errors withheld in the amount of taxes, the Earned Income Credit, estimated taxes paid or the increment in the standard deduction for the taxpayers results in the computation errors on a tax returns.

Certain tax preparation software like TurboTax automatically runs the calculations and may assist you with avoiding math errors in the return. Tax return accountant also make use of these types of software.

·        Social Security Number Unmatched

It is a part of IRS to verify tax return information and assure that the Social Security Number (SSN) and the name combination on the return matches the data in the database of Social Security Administration. A mismatched data may delay the processing of your return. The e-filing process checks for some common errors such as Social Security number/name mismatch. Returns that don’t pass the e-file checks are rejected and allow you to correct these before resubmitting g the return.   

·        Filing tax return too early or late

You could be so anxious to receive your refund but sometimes filing it too early may work against you. Certain changes to the tax codes or procedures also happen at the last moment, and the refunds could be delayed while the IRS updates the tax software. Usually, such delays are minimal but these could be avoided by waiting till second or the third week of the year.

Filing done at the last moment may also delay the return. This holds if you file on paper due to the intense volume of people filing at the same time. Filing also enhances the possibility that you could be the victim to identify the theft. This holds where someone make use of your Social Security number for filing a fake return and claim a refund.

If you file first, the thief will be of bad luck as the IRS delays processing returns bearing the Social Security number that has been already filed. Therefore, if the thief files first, your refund could get delayed for a few months while the IRS analyses your data and tracks down the fraudulent return. 

·        Incorrect direct deposit information

The fastest method to get the refunds is to e-file the correct return and requests a direct deposit on the refunded amount. This is one area where you must recheck the data entry. Even the small mistake in the routing or account number may delay the refunds for weeks or months. The IRS issues a paper check once the deposit gets rejected or is returned by the bank and mail the check to you.  

You could also choose to have a paper check sent from the outset rather than direct deposit. These delay the refunds as compared to when you had it with direct deposit. The delays are limited to the amount of time it takes the IRS to issue the check and the Postal Services to get it delivered.

·        Amendment of the tax returns

After filing, if you intend to make certain changes to the tax returns, you are required to prepare an amended return. Such amended returns are ineligible for e-filing and should be mailed to the IRS. The Processing for an amendment usually takes an estimated 8-12 weeks from the date the IRS gets the return. Your Bookkeeper in Melbourne may also assist you in such matters.

Amendment will not have any such influence on the original refund. You could want to wait to amend a return with such minor errors until you get the original refund.

 HIRE US

If you need any assistance and don’t want to get bothered to get the tax refunds, Contact Reliable Melbourne Accountants. We can assist you for all the matters either bookkeeping for small business or to get the best accounting services in Melbourne. We are professionals in our field. We are the superior result for your search, “accountant near me”.