What Common Mistakes to Avoid When Filing Tax Returns?

It is important to lodge a tax return every year. However, not everyone is an expert in preparing and filing tax returns properly. Many people make mistakes when they file tax returns because they don't have enough knowledge about tax matters. For this reason, small business accountants in Melbourne are being hired by many companies. When small businesses make mistakes during tax season, they don’t know how to tackle those mistakes. Keep reading this blog to learn about tax return amendments and common mistakes that can be removed during tax season.

What are Tax Return Amendments?

A tax return amendment acts as a correction to tax returns that you previously filed. It is a chance for taxpayers to resolve mistakes in their tax returns to reflect correct changes in the tax returns. Another advantage of tax return amendments is that they may correct deductions and income. The ATO accepts tax return amendments within the specified time limits to allow taxpayers to adhere to tax laws. If you don’t know how to lodge or amend your tax return, you can seek help from tax accountants for small business in Melbourne.

Mistakes Small Business Owners Make When Filing Tax Returns

When you notice that you made a mistake while filing your tax return, you don’t need to panic. First of all, it is recommended to seek help from expert tax accountants because they know how to lodge tax returns without making any mistakes. Furthermore, if you tried to file a tax return on your own and made a mistake, you should ask for expert advice. Take a look at the following points to know what mistakes you should avoid when preparing and filing tax returns:

• Claiming Tax Deductions You are not eligible for

According to the ATO, tax deductions can be claimed by Australian citizens. No doubt that they go after taxpayers who don’t show their profit overseas to avoid paying taxes. You should also know that they also consider checking your accounts and financial transactions. Now, the ATO looks after every item that you claim for deductions. You will be targeted by the ATO if the deductions seem to be too high with no receipts for the same. A small business accountant can help you claim the rightful deductions.

• Not Paying Taxes on Time

You can manage your cash flow and reduce the stress of paying annual taxes by making prepayments. If you want to make prepayments, then you can do this at any time when you want. However, even if you are not paying tax returns on the specified date, then you have to pay a penalty along with your taxes. To avoid this, hire a tax accountant who will be responsible for paying taxes on time on your behalf.

• Not Keeping Financial Records

Even a small business has a fair amount to keep everything organised ahead of tax season. If you keep your documents organised throughout the year, then they can make the tax season smooth for you. An accountant can help you keep track of all financial activity throughout the year and simplify your yearly tax returns. To manage your business books, you can hire a Melbourne bookkeeper for your company. The following are important documents that you need to maintain:

• Credit card statements

• Sales receipts

• Expense invoices

• Bank statements

• Records of superannuation, wages, contracts of employees, and tax declarations

• A list of your debtors and creditors

• Not Seeking Help from a Tax Accountant

An expert tax agent knows alternative solutions for all types of tax problems. They know how to prepare and file tax returns on your behalf. They also know about possible tax deductions that your business can claim. If you want to hire an accountant near your area, you can also search for a small business accountant near me.

Conclusion

Tax time doesn’t need to be stressful. Your tax season can be smooth and stress-free if you have organised and accurate records that need to be used when filing tax returns. If you don’t know how to prepare and file tax returns, you should get help from an expert tax accountant. For more accounting solutions for your company, you can reach Reliable Melbourne Accountants.

Significance of a Taxation Accountant for a Startup Business

If you are a startup business owner, reducing unnecessary expenses and increasing profits are probably your topmost priority. For this reason, they need to have well-maintained books of accounts, just in case an investor likes to check the profit statements. This is where an accountant comes to play his/her role. Hiring an accountant to deal with business finances would help you in the long run. To manage your business taxes and other legal tasks, it is better to take help from taxation accountants.

Many small business owners like to manage their business taxes and business accounts on their own, but if you hire a tax accountant for your business, then you can save money in the long run. In today’s competitive world, it is quite challenging for business owners to do their own taxes and look after bookkeeping and accounting. Thus, it is important to hire accountants so they can make a strong business strategy to gain more profit.

Importance of Taxation Accountants in a Business

Ensuring your business is following all the tax rules and regulations is one of the most important responsibilities of a company’s accountant. Furthermore, a professional and experienced accountant will offer you more than preparing financial statements. The following are core responsibilities of a tax accountant:

·        Financial Operations

A professional accountant will be responsible for performing financial tasks, including:

o   Gathering and recording finances

o   Analysis of business finances

o   Showing financial reports

o   Making sure the accuracy of financial reports of a business

In a small business, an accountant gathers financial data, performs financial entry, and generates a report. In a big company, an accountant may need to be a financial advisor and show financial data within and outside the company. Furthermore, an accountant can also help manage third parties, such as clients, vendors, and other institutions.

·        Financial Advisor and Analysts

Accountants are great financial advisors and analysts. It means they can help you make the right business decisions, from basic order supply to bill payments. In addition to this, they can also advise you on business functions, expenditures, revenues, and financial commitments. Tax agent Melbourne can help you know where you can save money or reduce taxes.

 

Accountants’ suggestions help you develop relevant procedures, resources, and strategies to deal with a particular financial issue or situation. Despite this, accountants also help evaluate the feasibility of investments. Before an investment, there is a need for proper analysis of costs and estimation for future cash flow.

 

·        Look after All the Financial Transactions

If you are running a business, then you must know what comes in and out of your business in the form of finances. If you are unaware of these financial transactions, then you won’t be able to prepare and file for business taxes. A tax accountant understands your business needs and guides you accordingly. Despite this, bookkeeping services are also important to track each financial transaction because, with accurate bookkeeping, a bookkeeper can help an accountant to proceed further. Thus, accounting and bookkeeping for small business, both aspects are essential to run business smoothly.

 

·        Help You with Business Planning

An effective business plan will guide you on how to achieve your business goals and help you secure funding. Accountants will make sure your business plans are realistic, achievable, and updated.

 

·        Projection of Budget Expenses

During the starting phase of your business, it is important to lower your expenses as much as you can. With the help of a cash flow statement, you can regulate the flow of money and understand where to invest. A tax accountant Melbourne will help you understand how you can manage your expenses legally to gain benefits as per the work you do and the niche you work in.

 

Well, nothing is fixed in the business, and everything gets changed according to the market environment, but it doesn’t mean that you can’t estimate your earnings. An accountant can help you with financial prediction and keep you better organised for what is going to happen next.

 

·        Suggestion of Possible Tax Deductions

When it comes to increasing business profit, then you must take help from an accountant to get accounting services. An accountant can help you get potential tax deductions. Tax accountants know different tax deductions that businesses can claim. An experienced and professional accountant can help you increase your deductions. As a result, you can get a considerable reduction in your tax bills.

 

·        Manage Business Growth

Accountants help small business owners effectively increase their profits. They can help you by suggesting different ways to reduce unnecessary costs and increase revenue. They can also help you identify new markets for your services or products.

Conclusion

Accountants are responsible for considering internal as well as external factors of your business to help you increase profit. They can help you by keeping your financial records accurate, offering you valuable advice, and managing your business finances. If you want to stay on top of business accounts, then you can contact Reliable Melbourne Accountants.

How to Find a Good Tax Accountant to do Your Taxes?

 

As a business owner, you will have several tasks to perform and at that time, you may not have enough time to organise your financial records to prepare and file business taxes. However, this mistake can lead you to pay more than necessary, i.e. in the form of fines or penalties. For this reason, you should take help from a tax accountant to do your taxes. In today’s blog, you will come to know how to find the best tax return accountant Melbourne. If you choose an accountant with no knowledge regarding taxes, then you can get into trouble. To save you from making this type of mistake, we’ll help you find the best one for your business. Let’s get started:

How to Find a Good Tax Accountant for Your Company?

If you want to hire the best tax accountant for your business requirements, then you can follow the below tips to hire the right one for your company.

·        Get References from Other Businesses

If you get a reference from your friend or other businesses, then you can find the right and trustworthy tax accountant to do your taxes. If you have a friend who is in the same industry, as you are, or you know someone who has knowledge of finances and they know some accountants, then you can get their recommendations. When you get references from someone you know for the best tax accountant Melbourne, then you may know better whether that accountant would match your business needs or not.

 

However, you must be careful when choosing any accountant and you must interview before hiring an accountant for your business. Just because the accountant is referred by your friend doesn’t mean that an accountant would have sufficient knowledge. Thus, it is your responsibility to ask an accountant what you expect.

 

·        Research Online

One of the best methods to find out good tax accountant for your business is through online research. You can also search for the term ‘good tax accountant near me’ to hire an accountant near your location. You can also get detailed information about the accountants, so you know what experience they have and what they have done in their studies. Once you’ve chosen the accountant online, then you can conduct an in-person meeting.

 

·        Write the Questions to ask a Tax Accountant

If you ask the right questions to an accountant, then you can hire the right accountant for your business. Before you agree to anything, prepare a list of questions that you want to ask the accountant so that you can decide whether you want to hire that accountant or not. You can conduct an in-person meeting with the best tax accountants Melbourne. If an accountant answers all your questions in the right way and accurately, then you can proceed further.

 

·        Check Qualifications

The most important thing that you should consider is the qualification of the accountant. The professional accountant will be graduated in finance or accounting and be registered with a well-reputed accounting institution. Some tax accountants have extra qualifications, so it is worth hiring those tax accountants with high qualifications and maximum experience.

 

·        Request Quote

You should request a quote before hiring any tax accountant because you should consider your budget requirements as well. Make sure to check whether the charges cover all aspects related to accounting services and tax-related tasks. In addition to this, you should also ensure that there are no hidden charges. To find out affordable tax accountant near your local area, you can search for the term ‘cheap tax accountant near me’.

Is it Worth Hiring an Accountant to do Your Tax?

There are various benefits of hiring a tax accountant for your company to do your taxes:

·        Prevent Tax Penalties

When you fail to meet tax obligations, then you may have to pay more than necessary. An accountant knows about tax obligations and can help you pay tax on time to prevent tax penalties.

 

·        Minimise Tax Liability

Minimising tax liability will ensure that you are paying the right amount, and an accountant will help you follow the right strategies to keep your finances accurate. A qualified accountant will ensure that your business is following tax rules announced by the legislative authority.

 

·        Get Expert Advice

An accountant is also a good financial advisor. Thus, you can ask your accountant about the financial status of your business. So, you can improve where needs improvements.

 

·        Offer Security

Security is the major concern of every business. If you want to boost the security of your business, then you should hire an accountant. A qualified accountant knows data protection rules and accountancy software to provide you with secure accounting services.

Wrapping Up

If you run a business, then you can hire an accountant to set up and maintain your financial transactions. They can also help you follow tax rules and regulations. The right accountant can give you the right advice on accounts. So, if you are looking for accounting services for your business, then you can reach Reliable Melbourne Accountants.

What are Accounting Services and Why are they Important?

Accounting plays a crucial role in every business whether it is just a startup or an existing business. Basically, with the help of accounting services, business owners, investors, stakeholders, and managers in the business can assess the financial status of the business. Accounting offers information regarding profit and loss, earnings and cost, assets and liabilities for making business decisions, planning and controlling processes within a business. You can seek help from an accountant to manage your business accounts because they are experts in recording each financial transaction in your account’s books to recognise and measure economic information. In today’s blog, we’ll discuss the importance of accounting in every business and the need for taking help from an accountant for your business.

Why do You Need Accounting?

Accounting is the method of knowing a business’s financial condition and it helps in making the right business decisions. Accounting plays a significant role in businesses because it helps tax agent Melbourne to prepare and file business taxes on your behalf. Apart from this, it also helps in tracking expenses and income and offers management, government and investors the relevant financial information that can be used in making business decisions.

Accountants from one of the best accounting firms are responsible for generating three types of financial statements, such as:

·        The Income Statement offers information about the gains and losses of the business. You can have an idea of the profitability of your business with the help of an income statement.

 

·        The Cash Flow Statement helps in making a bridge between the income statement and the balance sheet. Additionally, it offers a report on how much cash has been spent during a specific time period.

 

·        The Balance sheet helps in portraying the real image of the financial status of the business. With the help of a balance sheet, you can get insight into the working of your business.

Being a business owner, it might be difficult for you to keep your business accounts up-to-date and clean as you may have a number of tasks to perform. Here are some reasons that you need an accountant for your business:

·        Helps You with the Taxation Process

The taxation process is quite difficult to handle for a person who doesn’t know anything about it. If you are not aware of the taxation process, then it would be the best thing to hire a tax accountant Melbourne for your business because tax accountants know the whole process and documents required to prepare and file business taxes.

 

·        Avoid Paying Penalties

Professional and experienced accountants know how to resolve any issues related to tax and prevent you from paying fines or penalties. In this way, you can save money. Additionally, they also have knowledge regarding possible tax deductions, and you can also get benefits from potential tax deductions. As a business owner, you may know that if you make efforts and invest time in other business tasks, then they can benefit you in the future rather than wasting your time on managing business accounts and related tasks. It would be better to hire an accountant for your company and let him/her focus on accounting.

 

·        Helps You Grow Your Business

When your business starts growing, then your business needs and budget requirements will also change. Your accountant can help you grow your business by ensuring your finance and accounts are accurate for expansion, and you can plan the future of your business.

 

·        Remove Tax Issues

If you don’t know how to prepare business taxes and what documents you need to file taxes, then you can leave this burden on your tax accountant’s shoulders. Accountants know everything regarding the tax system and can help you get the job done in no time.

 

·        Financial Management

A professional accountant can help in your business’s financial management. One of the major concerning factors is the cash flow of the business and accountants focus on it to know the whole movement of the company and comparison of opening cash balances, short-term investments, expenses and income for a specific time period. With the help of a cash flow, you can come to know how much money your business has.

 

·        On-Time Payments

By hiring an accountant, you can be sure that your bills will be paid on time. You may know that if you don’t pay bills on time, then you may have to face unhappy vendors. Delayed invoices can lead to cash flow risk. Hence, it would be beneficial for your company to take help from accountants from one of the best accounting firms Melbourne.

Wrapping Up

Now, you know the importance of accounting in your business. However, make sure to hire a reliable and professional accountant for your company because many of your business decisions will be based on the accountant’s performance for your business. You can reach Reliable Melbourne Accountants for accounting. 

Why Startups should opt for Accounting Services?

Many of you may have just started your business and may be thinking of whether you should hire an accountant for your business at this early stage or not, right? If you are in this situation, we recommend hiring accounting services for your business because these services can help grow your business. Many of you may think that hiring accountants for small business is an extra expense, but you should not think like this. In fact, you must think that it is an investment rather than an expense. In today’s blog, we’ll discuss whether you should choose accounting services or not. Let’s get started:

Reasons to Opt for Accounting Services

If you own a startup business, then there are several things that you need to consider. Most business owners think that it is better to perform all tasks on their own without seeking help from others because they are afraid of extra expenses. However, there are mistakes that you do while managing business accounts and these mistakes can be avoided if you take help from a professional accountant.  Take a look at the below section to know what benefits you can get by hiring an accountant for your business:

·        Professional Accounting Services

There are various tasks involved in accounting and if you are managing your business accounts without hiring an accountant, then you must be extra careful. However, if you hire the best small business accountant Melbourne for your business, then you don’t need to worry about accounting because a professional and expert accountant knows how to deal with different accounting tasks.

 

·        Handles Taxation Matters

Preparing and filing a personal tax return is not an easy thing for everyone. Business tax returns are more complex, and there are some constant changes in the tax laws. Professional accountants keep themselves updated with new tax laws and will manage all your tax obligations.

 

·        Keeps Track of Your Business’s Financial Growth

The primary purpose of a business is to earn profit and make money. As such, you need to track the financial growth of your business. The best way to get an opinion from a professional is by hiring an expert accountant. An accountant will help you know whether you are making a profit or not. There are various accountants in Melbourne that can help you track the financial growth of your business.

 

·        Prevents Tax Penalties

Being a startup business owner, you may not know new tax rules and regulations and this is the reason why many times, you have to pay too much money that you don’t need to. For this reason, it is important to take help from tax accountants so that you don’t need to worry about tax penalties or fines from the legislative authority.

 

·        Offers Financial Advice

An accountant acts as a financial advisor, so if you have any concerns about your business finances, then you can ask your accountant to resolve the issue so you can make the right business decision. They are also responsible for providing you insight into financial operations.

 

·        Handle Your Business Finances

Make sure you have hired an experienced accountant for your business because if you have a reliable accountant, then you can leave all business finance responsibilities to your accountant. A trained accountant will be responsible for managing your business accounts and sending you daily finance reports to help you know the financial status of your company.

 

·        Offers Security

In every business, business finance security is a major concern. If you want to maximise your security, then hiring an accountant would be the best method. An experienced accountant knows data protection rules and uses special accounting software to provide you with a secure accounting service.

 

·        Makes Robust Business Plan for You

If your business is in the pre-launch phase, then an accountant can help you make a solid business plan. They can suggest to you what types of sales numbers can be achieved. In addition to this, they will also help you predict your revenue over the next few months. Apart from this, an accountant will also give you an idea of required startup investments and costs. Accountants also help in working in a time when you have negative cash flow.

 

·        Reduces the Unnecessary Risks

Every business must have a second option to opt for if there is any risk associated with the business. Accountants will reduce the risks that can impact the business finances. If you are planning to do something big, such as expanding your business, launching a new product, or investing in something, then it is necessary to hire an accountant.

Wrapping Up

There are several advantages of seeking help from accountants for your business. It doesn’t matter whether you are a startup or have a large business, every business owner must hire an accountant so that everything in the business goes smooth. If you are looking for accounting in Melbourne, then you can seek help from Reliable Melbourne Accountants.

Should You Hire an Expert Tax Accountant to Do Your Taxes?

When running a company, there are several things to keep track of, from daily business tasks to customer service to increasing sales. When all these tasks occupy your time, then at that time, it is easy to let the financial status of the company go unmonitored. One of the most difficult things that you may face is ignoring business taxes and this is a huge mistake. For this reason, it would be beneficial to hire a tax return accountant Melbourne for your business to keep your business running smoothly.

To run and grow your business without letting money matters ruin what you need, you need to give a chance to a tax agent. A good accountant will help you handle your business’s financial statements and make sure that you have a consistent positive cash flow or are close to achieving your goals. Before you hire a tax agent, it is necessary to understand why you need one, what you need to consider, and what one can do for your business.

What can you expect from tax accountants?

An accountant is an expert who keeps an eye on the financial situation of your business. It includes keeping track of the money your company owes to other parties such as suppliers, known as accounts payable, and the customers owe money to you, known as accounts receivable.

Submitting and filing your tax returns can be overwhelming and challenging. Not only can it be a daunting and complicated task, but doing it yourself could make your company miss out on essential deductions and savings or even result in paying penalties or fines.

Advantages of Hiring a Tax Agent for Your Company

Here are some most important benefits of seeking help from personal tax accountants Melbourne that can meet your business needs:

·        Time Saver

Running a business can easily take all of your productive time as a business owner. It can be stressful to maintain your business finances, especially if you have a large organisation than a one-person operation. Hiring an accountant will help manage your business finance. You can search for an accountant near your area by searching for the term ‘tax accountants near me’ as it will show you several results, and you can choose one that is near your location. Apart from this, you can contact an accounting firm to seek help from professional accountants.

 

·        Save Money and Avoid Costly Mistakes

When your money is being spent inefficiently or wasted, then your small business accountant can grab opportunities for savings. An accountant can advise you on affordable ways of handling payroll, inventory and more. If you are unaware of taxes, it is easy to make a costly mistake, such as providing the wrong income tax amount unintentionally, simply because the entire taxation process might be confusing. However, the tax bureau will not avoid these errors. Fortunately, tax accountants know how to perform the taxation process easily and can prevent mistakes and save their customers money. For this reason, you must hire a professional tax accountant and to find the tax accountant near your location, you can search for ‘tax return accountant near me.’

 

·        Make Tax Preparation and Filing Process Easy

Paying taxes is a daunting and complicated task. One has to fill the right information in the right form and give accurate income facts, payroll, accounts, and expenses when running the business. You can remove this stress and let an expert tax accountant get the job done.

 

·      Increase Deductions and Refunds

One of the most important benefits of hiring tax accountants is that they can make sure you get the most of available tax deductions. Your experienced accountants will be aware of several methods to find opportunities to increase your refund and deductions. Many business owners don’t track items like depreciation, unnecessary expenses, and home office space. So, avoid doing these things.

 

·        Compliance and Accuracy

Many business owners are not completely confident in their ability to fill their company’s return, avoid fines and penalties, get the benefit of deductions, and manage possible audits. However, your tax accountant is professional in all these matters. So, this is another reason to hire a tax agent for your business, and you can search for ‘tax agents near me’ to find out tax professionals near your location for your business.

 

·        Help You Keep Better Records

A tax professional will help you improve your company’s expense recordkeeping quality. Well-organised and detailed records will help you in tax deductions and increase savings.

Conclusion

Well, hiring a tax professional will help you in many ways and provide you with numerous advantages. However, make sure to choose the right one for your company. For reliable tax accounting services, you can also reach Reliable Melbourne Accountants.

Is Novated Lease Worth It Australia in 2022?

In Australia, people really want to know if that is novated lease worth it Australia. Contrary to popular belief, novated leases are not exclusively advantageous for high achievers. No matter how much money you make, this method of financing can work for a variety of car buyers and users. Reducing your taxable income results in paying less tax, even with a little salary.

Pay Minimum Tax

Death and taxes are said to be the only two things in life that are guaranteed. However, many of us undoubtedly take advantage of the chance to pay less if there was a method to do so.  

Reliable Melbourne accountants said that it will always be fashionable to pay as little income tax as possible. One of the biggest arguments in favour of novated leases is that they are both cost- and tax-effective, giving you more after-tax money to spend.

The final respectable tax advantage for employees is a novated car lease. According to the terms of the agreement, the employer deducts all car payments and maintenance charges from the employee’s paycheck. As a result, the employee’s taxable income is significantly reduced at no extra expense to the employer.

What are the Benefits of Novated Lease?

·        First off, the majority of novated leasing expenses come from your pre-tax income. Accounting firms Melbourne said that your novated lease payments are deducted from your income before tax, just like salary sacrificing on other things, like your computer or additional contributions to super, so you will pay less tax overall. A novated lease also keeps money in your pocket allowing you to use funds for other purposes, as opposed to buying outright, which is extremely expensive upfront for a depreciating asset.

·        In contrast to outright car purchases, novated leases allow you to avoid paying GST because the product is exempt from it. Additionally, novated leases are primarily paid for out of your pre-tax income, whereas traditional auto leases are not. Additionally, with novated leasing, you can avoid paying GST on your car's gasoline, maintenance, insurance, tyres, registration, and other consumables.

·        You can get fleet pricing, which is essentially wholesale pricing, through novated lease businesses. Furthermore, your novated leasing provider ought to be able to obtain parts and labour for you at wholesale (fleet) rates as well, which could result in significant savings. If you buy outright or take out a conventional auto loan, you might be able to obtain this benefit, but keep in mind that doing so will come out of your after-tax income and would not save you as much money while comprehending that is a novated car lease worth it. Additionally, if you notice a low-interest rate on auto financing at a dealership, be aware that you probably are not getting as good of a bargain as you might think; more than likely, the cost of the car is greater to make up for the lower interest rate.

Is A Novated Car Lease Worth It?

Accounting firms Melbourne said that many of Lease plan's customers who use novated leases save as at least $3,000 yearly.

The main factors for this are the GST savings that occur with novated leases, together with the lower income tax due to the fact that your pre-tax wage is used to contribute to your lease payments.

With a novated lease, you first save money on the vehicle’s actual purchase price. GST is not applicable to the purchasing price. You will save $3000 right now if you are buying a $30,000 car. During the lease, you can also avoid paying GST on any of the car’s operating expenses.

Employee Contribution Method (ECM)

ECM means you will make a portion of your lease payments from your post-tax earnings in order to manage FBT liability rather than making all of your lease payments from pre-tax earnings. Post-tax payments enhance the arrangement’s tax efficiency by effectively eliminating any potential FBT that would otherwise have to be paid.

Final Say

The top firm in Australia, Reliable Melbourne Accountants, offers its clients the best services possible to help them manage their company's accounts more effectively. Hope people gain all the knowledge regarding is a novated car lease worth it.