During the
early phases of a company's lifespan, important people of the business, especially the owner, may be required to wear multiple hats.
Depending on the needs of the company, you could be the CEO, secretary,
salesman, accountant, or even an intern on any given day.
While this balancing act may succeed at
first, it will become unsustainable as the company grows. Taxes and financial
planning, for example, become substantially more complicated and
time-consuming, especially if you work in an area with strict regulatory or
compliance requirements.
To that end, every expanding business eventually
reaches the point when hiring an accountant in Melbourne is a must. How do you know when it's time to hire an
accountant, though? Paying attention to the indicators is a good way to start.
·
Bookkeeping needs much time
Your time
as a business owner is limited. You can't afford to be pushed in a million
different directions forever. It becomes prohibitively expensive to spend your
time and energy on things that aren't a suitable fit for your skillset like bank reconciliations. Transactions
become more sophisticated as the company's revenue grows.
Consider all of the things an accountant could do
that would likely take up a lot of time each week, such as:
·
Responsibility of regular transactions
·
Variance analysis and cost accounting
·
General ledger maintenance
·
Preparation of financial statement
·
Cash Management and treasury that includes bank
reconciliations
· Fixed asset accounting and payroll
· Tax Season
If you've ever got a huge refund or owing a big amount in back taxes, these are red signals indicating you're not properly addressing your business taxes.
As a
result, even for experts who are familiar with the complexities and nuances of
tax rules, rules, and regulations, tax season may be one of the most stressful
periods of the year. However, if you're in charge of making sure your finances
are in order, you can feel completely out of your element.
It only
takes one blunder to get you into trouble with the ATO. Even minor blunders and
oversights can result in a penalty from the ATO. Simply not comprehending the
regulations could result in you missing out on deductions or business credits
that could decrease your tax liability.
By hiring
an accountant, you could have someone capable of:
- Tax
planning
- Personal
tax planning
- Compiling
and submitting taxes
- Filing
financial reports and paperwork to IRS
- Ensuring
you maximize your deductions and credits
Even
though the accountant's hourly pay is higher than yours, the small business accountants complete the
work in a fraction of the time and with more accuracy.
·
Planning
for out of state expansion
There will be new rules and regulations governing
your firm and its taxes as soon as it leaves the protection of its existing
state. You'll most likely encounter the following things during this expansion:
·
Hiring new employees
·
Opening a new location
· Doing the business across the state
If that's
the case, an accountant can make sure you're following all of the state's
income, sales, and payroll tax reporting regulations. They can also go over
your papers and look for any incentives you may have overlooked.
·
Other
Situations
There are
some situations in which hiring an accountant becomes crucial includes:
At the time of Audit
You'll
need taxation accountants if you're
being audited. Even if the ATO sends you a simple request for more information
about your tax returns, you should engage a professional. Accountants are familiar
with dealing with the ATO and can guarantee that you act appropriately to
address the problem. You may find yourself in hot water if you handle it on
your own and make a mistake.
Unusual Scenarios
Personal matters might sometimes have an impact on the
destiny of your company. For example, if a business partner leaves or if the
firm is deemed a marital asset in the event of a divorce, both of these events
could alter the trajectory of a company. An accountant may assist with tax
planning, business structures, estimating the value of a firm, and preparing
financial documents for a sale.
Taking out a business loan
An
accountant can assist you in determining whether or not taking out a loan is in
line with your business goals. If this is the case, they can advise on the
optimal loan structure, amount, and payment plan while providing the required
financial statements.
· Assistance with financial reporting
Is your
firm at a point where it's time to bring in more capital? If that's the case,
the financial records of your company will be crucial in the investor pitch and
decision-making process. For your P&L, balance sheet, and cash flow
statements, you need reliable reports.
An
accountant can quickly prepare the documents, ensuring that they are accurate
and include all pertinent information. As a result, you position your company
for success and raise the possibility that outside investors will be ready to
put their money into it.
Additionally, once you have enlisted funding, you
will need to create financial accounts and reports on a regular basis to
present with your stakeholders.
We are
the best accountants that your business needs
With Reliable Melbourne Accountants, you can choose the ideal accountant
for your company— one who has the relevant industry experience and accounting
expertise.
We have
the solutions your business requires to flourish, whether you need a single
accountant or an accounting team. We ensure you that we are the best result of
your search “best tax accountant near me”.
Contact us today
to see how we can help!
