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. 

Asset Write-Off Rules Described by Tax Accountant Melbourne

Tax accountant Melbourne said that the government recently approved a number of amendments to the tax laws, to protect the Australian economy from the effects of the Coronavirus. This includes new accelerated depreciation rules, adjustments to the instant asset write-off regulations, and restrictions on the write-off of SBE general pools. 

The government has essentially only revised certain important levels within the current instant asset write-off laws, making the adjustments in this area in some ways rather simple. Generally speaking, the modifications are:

·        A rise in the low pool value criteria from $30000 to $150000

·        The instant asset write-off cost level is from $30000 to $150000

·        The turnover requirements for depreciating asset deductions from $50 million to $500 million

Melbourne accounting firm claims that depending on whether you are working with a small business entity or a medium business firm, the eligibility rules may be slightly different.

The following prerequisites must be met for a small business organization to be eligible for the $150000 instant asset write-off threshold:

·        The company must operate under generally accepted business practises

·        Must generate annual combined revenue of less than $10 million

o   Based on 2019 or 2020 income year figures

o   It must decide to use the simplified depreciation rules for the 2020 income year

o   The asset must be purchased after 7:30 p.m. AEST on May 12, 2015

o   Professionals of accounting in Melbourne said that it must be used for the first time, or installed in a state of readiness for use, for a taxable purpose between March 12, 2020 and June 30, 2020.

The instant asset write-off rules will not be available to a small business organisation if it chooses not to use the simplified depreciation rules in the 2020 income year, regardless of whether the other prerequisites can be satisfied.

If the following criteria are met, entities that are not considered small business enterprises can access the $150000 instant asset write-off threshold.

·        The organisation must operate under general rules

·        It must have a combined yearly revenue of at least $10 million but not more than $500 million

o   Small business accountants said that based on data from the 2019 or 2020 tax year

o   The item must be purchased after 7:30 p.m. AEST on April 2, 2019

o   The asset must be first utilised, or installed and ready for use, between March 12, 2020, and June 30, 2020 for a taxable purpose.

The instant asset write-off rules are open to businesses with a turnover of $10 million or more but less than $500 million, however, they are not eligible for the general pool rules, which are available to a small business organisation with revenue of less than $10 million. 

Melbourne accounting firm said that in all of the prerequisites for claiming an instant deduction in regard to an asset are satisfied, the taxpayer may do so in the year the asset is first used (or installed and made ready for use) for a taxable purpose. The deduction is only permitted to the extent of the asset’s taxable purpose. Applying the business use percentage comes after first determining if an immediate deduction is possible based on the asset’s total cost.

Tax accountant Melbourne said that the entire cost of the asset on 30 June 2020 must be less than $150000 in order for an immediate deduction to be granted.

The first element of cost and the second element of cost are combined to form the cost of a depreciating asset under Division 40 ITAA 1997. The amount paid or assumed to have been paid in relation to beginning to possess that asset under section 40-180 is included in the first element of cost (e.g. a purchase price). After the taxpayer begins retaining the depreciating asset in accordance with section 40-190, the second element of cost comprises a sum paid or taken to have been paid in relation to bringing the depreciating asset to its current condition and location (e.g. improvements or delivery costs).

Experts of accounting in Melbourne claim that the portion of the sale profits that was used for business purposes must typically be included in assessable income when an asset that was initially eligible for an instant deduction is later sold. When assets are lost or destroyed and some proceeds (such as insurance proceeds) are received, similar restrictions apply.

Summary

Reliable Melbourne Accountants delivers skilled small business accountants to individuals and companies with professional accounting services. We deliver our services at very reasonable rates.

Lodgment Program Framework in Australia

BAS agents and registered tax agents play a crucial role in assisting taxpayers in meeting their superannuation and tax lodgment obligations. Taxation accountants provide a lodging option that allows for progressive lodging over a 12- month period in managing this workload. By assessing the success of the lodgment programme, registered agents are encouraged to complete on an even playing field.

The framework familiar agents who:

·        Have Quality Practice Management

·        Lodge Electronically

·        Are Consistently on Time

In order to acquire the lodgment programme due dates, you must:

·        Lodge electronic fringe benefits tax and income tax returns (unless there are extraordinary circumstances).

·        At least 85% of your clients’ current-year returns should be received on time.

“On time” refers to returns being received by the submission programme due date or in the case of a deferral, the deferred due date.

How to Fulfill the Performance Criteria?

To assist people to fulfill their performance, tax agent Melbourne recommended that:

·        If an unanticipated circumstance has prevented you or your client from lodging an obligation, you may think about requesting a lodgment deferment.

·        If an unexpected event has affected your entire practice, ask for assistance from the sponsored lodging programme.

·        Up-to-date your clients’ list.  

·        If your client is not required to file a return for any particular year, notify the government.

Electronic Lodgment

The Tax return accountant said that to get the deadlines for the lodgment programme, you must electronically lodge all of your customers’ tax returns.

The only electronic route for lodging your clients’ tax and annual returns is the Practitioner Lodgment Service (PLS) at the movement:

Individual and Trust Tax Returns

·        Company Tax Return

·        Partnership Tax Return

·        Fringe Benefits Tax Return

·        Self-Management Income Tax Return and Superannuation Fund Annual Return

If You Lodge By Paper

Only tax returns that are lodged electronically are subject to the due dates offered under the lodgment programme. Tax accountant Melbourne said that they may impose a late lodgment penalty if you file a paper tax return after the document’s statutory due date.

You must file electronically unless you are dealing with extraordinary circumstances. You can request a lodging deferral if extraordinary or unforeseeable circumstances in your practise prevent you from lodging by the deadline.

Electronic Lodgment Exclusions

We acknowledge that there are situations in which electronic filing is not feasible owing to schedule or software constraints. When either of the following applies, we shall exempt lodgment from the electronic requirement.

·        They haven't provided an electronic version of a tax return.

·        Software availability does not coincide with a crucial deadline.

Forms Excluded from Electronic Lodgment

Taxation accountants said that according to the framework for the Lodgment Program, the following tax return types are exempt from the electronic lodgment requirement for 2021–2022.

·        Returns for public unit trusts or large managed investment trusts

·        SAP (Substituted Accounting Period) tax returns, which are those that must be filed while the current year's software is not yet ready. These taxpayers are affected.

If You Do Not Meet the Performance Requirement

If you fall short of the benchmark performance goal of 85% for the 2020–21 programme years, it won't have a detrimental effect on your settling programme.

The Tax return accountant said that they want to support you in maintaining your logging programme and enhancing your performance. As a result, we might get in touch with you to talk about your situation. With your cooperation, we will use our diverse assistance strategies to guarantee that we are giving you the proper support.

Dealing with Unexpected Events

In order to help you deal with immediate problems that prevent you from submitting your paperwork by the deadline, the lodgment programme will continue to offer deferrals. Your performance in terms of on-time delivery will be evaluated using the postponed due date.

You can request assistance from the supported lodging programme to help you get back on track if you are dealing with longer-term extraordinary circumstances. Tax agent Melbourne said that they will collaborate with you and take into account your particular situation, such as:

·        COVID-19 Impacts

·        Serious Illness Within Your Family or Practice

·        Natural or Other Disasters

·        Sudden and Unexpected Staff Changes

Final Word

We hope that you are fully equipped with the knowledge needed for the lodgment program framework n Australia. Reliable Melbourne Accountants provides professional tax accountants Melbourne to individuals and businesses.

How to Account for Leasehold Improvements?

Leasehold improvements are improvements to leased space that are paid for by the tenant. Interior walls and ceilings, plumbing and electrical extensions, built-in cabinetry, and tiles and carpeting are examples of leasehold improvements. Accounting firm Melbourne said that unless the tenant can remove the improvements without causing damage to the leased property, leasehold improvements generally revert to the landlord's ownership at the end of the lease. Offices built in unfinished office space are an example of leasehold upgrades.  

Accounting for Leasehold Improvements

If the cost of leasehold improvements exceeds the corporate capitalization limit, capitalise them suggested by tax accountant Melbourne. If not, write them off as a cost for the time period in which they occurred. If you capitalise these costs, you must amortise them over the lease's remaining term or the shorter of their useful lives. If the lease renewal is fairly assured, the remaining term of the lease can be stretched into further lease renewal periods for amortisation reasons (like when there is a bargain renewal option).

If you later buy the building, the lease is assumed dissolved, allowing you to amortise over the building's estimated remaining usable life, which is likely to be much longer than the original lease term, resulting in a significantly lower monthly payment.

Accountants for small business said that technically, you are amortising rather than depreciating leasehold improvements. Because the improvements are owned by the landlord, you are merely exercising an intangible right to utilise them during the lease term - and intangible assets are amortised rather than depreciated.

Is Leasehold Improvement a Fixed Asset?

According to tax accountant near me leasehold improvements are classified as fixed assets and are recorded in the non-current assets area of the balance sheet as part of property, plant, and equipment (PP&E). Lease improvements are accounted for as other fixed assets in US GAAP, according to ASC 360. (Accounting Standards Codification).

Depreciation of Leasehold Improvement

Because leasehold improvements belong to the lessor (landlord) and not the lessee (tenant), they are amortised rather than depreciated. As a result, the lessee only has the right to utilise the asset for the duration of the lease, making it an intangible asset. Leasehold improvements are amortised rather than depreciated because intangible rights are amortised. Hence, all leasehold improvements are amortised over time until the balance is zero. Tax accountant Melbourne said that there are now some guidelines to follow when it comes to amortisation accounting:

Useful Life Basis: If the leasehold improvements' useful life is estimated to be shorter than the remaining lease term, the associated costs should be amortised over that time. For example, if a freshly installed light fixture is planned to be changed in three years and the lease term is still five years, the asset should be amortised during that time.

Lease Term Basis: Accounting firm Melbourne said that if the leasehold improvements are expected to have a useful life equal to or higher than the lease term, the associated costs should be amortised over the term of the lease. If the office partition's useful life is projected to be 10 years and the remaining lease term is 5, the asset should be amortised over that time.

Extended Lease Term Bas is: If the lessor offers a low-cost lease, the lessee can rest assured that the lease will be renewed. In this case, accountants for small business said that the lease period extension is quite definite, and the asset can be depreciated over the extended period, which is capped at the item's useful life.

Final Say

We hope that you are fully equipped with the knowledge needed for the leasehold improvements. Reliable Melbourne Accountants provides professional accountants to individuals and businesses with better accounting services. If you want more knowledge regarding our services can take information by searching tax accountant near me.