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”.

Benefits of Hiring a Tax Accountant for your Business

The tax season could be a stressful time for the business owners. Whether you could be preparing for your personal or business tax returns, or looking to maximize the deductions, it could be an overwhelming task.

Surprisingly, millions of business owners forego hiring a tax return accountant when it is time to file their taxes. They could intend to save a little money or they would not like to share their books with someone else, but trust me not hiring a tax return accountant may even lead to a bigger headache. 

Below are few benefits to consider hiring a tax accountant for your small business:

·     TAX PLANNINGS AND PROJECTIONS

The most useful aspect of hiring a tax accountant is the service of yearly planning and possible cost projections. A trained accountant who is familiar with the recent taxation laws and regulations of your area, a more efficient tax projection could be estimated to assist you to set aside the extra funds required to pay off business taxes. Efficient tax planning could bring a huge benefit to small or large businesses.

·     UP-TO-DATE TAX PROFESSIONALS

All the business owners who are familiar with the process of tax filing and submitting yearly documents could not be much knowledgeable just like on new taxation laws from year to year. If you get hired a trained tax accountant, your business might be better prepared for tax season accounting, for law changes and regulations in your area. The experienced tax accountant could assist you to make the desired changes throughout the year to get ready when the tax collection rolls around.

·     YEARLY FILING

When there is a time for tax filing, the business owners panic suddenly when they realize the work and time that it takes into filing business tax documents. In spite of working till the last minute, hiring a tax return accountant  for yearly tax accounting requirements may assist you to prevent this scramble that may take place in the final moments of the filing season. The tax accountants are responsible for timely and efficient tax filing every year and allow you to relax from the hectic process.

·     IMPROVES RECORDKEEPING

When you ask any tax professional about increasing the business tax deductions, they will just ask you to improve your recordkeeping. Optimizing the tax deductions implies tracking and collecting the business expenses in an organized manner. If you hire a tax accountant to guide you with your taxes, they will certainly like to enhance your recordkeeping process. When it’s a time of tax season, you will put yourself in a better position, by focusing on a safe, organized, and accessible recordkeeping strategy.

·        Maximize the tax deductions

It is also amongst the crucial advantages of hiring a small business accountant Melbourne to maximize your tax deductions. The business owners are unaware of the finding deductions in the business operations. Experienced tax accountants have enough knowledge to assist you in identifying and maximizing all the deductions of a small business. The more deductions you are eligible for means more money you get back on the refund; therefore, it lowers the tax burden during tax strategy, planning, and preparation for small and large businesses.

·        Save Your Money

If you are still in doubt that hiring a tax accountant will exploit your pocket, it could be possible that you are lesser aware of the fact that they save a lot of whatever they actually get. Not only they keep track of your investments and expenses; however, they cut down money matters for some other aspects of the company.

HIRE THE TAX PROFESSIONALS OF RELIABLE MELBOURNE ACCOUNTANTS

The tax professionals at Reliable Melbourne Accountants are experts in tax strategies, planning, and preparation for small and large-scale businesses.

If you consider hiring a tax return accountant for your business to avail their accounting services, take into consideration the above-mentioned significant advantages. 

So, let your business scale to new heights with what the tax accountants in Melbourne do the best for your business. Rely on Reliable Melbourne Accountants for fruitful business growth.  

 Speak now with our tax consultants today by calling 1300 049 534, and learn more about their full range of specialties.

WHAT IS AN ACCOUNTING AUDIT?

The accounting audit has the necessary function of ensuring that a natural or legal person is not only telling the truth about their financial reports but also that the company's operations are operating as planned.

Accounting auditors can work within the company and perform an internal audit, but they can also be external agents and perform an audit for another organization or institution, such as the SAT

External and internal auditors:

External auditors are fully certified accountants who work as freelancers for a company or organization; These accountants aim to examine the financial statements prepared by the management of the company or organization.

In the case of internal auditors, we must say that they perform very similar functions to ensure that the financial statements of the company are truthful and accurate; however, they are employees of the audited company.

Company systems:

An accounting auditor not only checks that a company's financial statements are accurate but also checks that the company's systems are working as they should. The systems that an auditor is responsible for examining are those related to the internal controls of the company, or the measures adopted to reduce or eliminate accounting errors or fraud. The report released by the expert also points to possible internal holes in companies that, by not taking action, may allow employees to commit fraud and go undetected.

Financial goals:

Businesses should always strive to keep operating costs as low as possible without sacrificing productivity. The accounting audits to the objectives and financial goals established by the company and thus determine if the growth policies or plans are being carried out in the best way in order to achieve the stated objective.

Undoubtedly, the work of accounting auditors is essential in such a way that having their services is essential. If you wish to carry out an external audit of your business or companies, it is best to contact us, the experts at CPMD y Compañía, SC, where we have extensive experience in the field of accounting services and tax services.

THE FIVE MOST IMPORTANT FUNCTIONS OF MELBOURNE ACCOUNTANTS

The functions performed by accountants are very important since their main objective is to comply with the financial regulations established by the state in which they operate, as well as to facilitate decision-making by the management levels of the company or organization.

Among the main tasks that we can highlight are the five most important functions of Melbourne Accountants. 

Create financial statements: The accounting advisor is responsible for creating financial statements, which are summary reports that contain the use of company funds, as well as the financial situation in which it is. Its objective is to evaluate the losses or gains in a certain time.

Conduct audits: This function can be called as the synonym of examining and verifying the accounting documents, all with the purpose of creating a report that reflects if the audited information is faithful to the company that was the object of an audit.

Declare taxes: In Australia, the declaration is made before the Tax Administration System (SAT). In this statement, the amount of income earned in a certain period is stated. Likewise, the accountant has the obligation to complete the forms that he will present before.

Prepare payrolls: Payrolls are documents that record the days worked, as well as the salaries received by each employee. These documents include wages, bonuses, and deductions that are made to each worker.

Carry out cost accounting: Cost accounting is a technique for measuring and analyzing the result of business activity. Basically, it is a tool that helps in the decision-making process of the managerial levels of the companies.

As you can see, the service offered by the accountant is very important for companies and for the government; For this reason, if you wish to hire the service of experts, invite them to hire the services of Reliable Melbourne Accountants, an accounting firm Melbourne of experienced accountants where we offer excellent quality accounting services and tax accountant Melbourne. We are much more than an accounting firm since we not only offer accounting and tax consulting services, but we also provide bookkeeping services. We offer comprehensive services that allow our clients to operate under established regulations.

Choose The Best MYOB Accounting Melbourne For Your Business

Choose Best MYOB Accounting Melbourne for Business

For small and medium-sized enterprises, you have many great options to choose from if you're looking for booking and accounting software. Nonetheless, MYOB Bookkeeping Melbourne should be your preference if you are looking for the best. MYOB is an Australia-made accounting program. It has a large market share in Australia, New Zealand, and the United Kingdom and has now been successfully implemented on the US market too. MYOB offers various items to suit the company's size and needs. Including:

The next choice is MYOB Premier. All the above features in this program include the ability to use several currencies. This is particularly useful for foreign currency accounts and export / import markets. For accounting purposes, MYOB transforms foreign currency into your local currency. You can also have multiple users from MYOB Premier. This allows you to allow more than one person to access the file and simultaneously use common information. Reports are available at 165+.

-    Business Basics

-    Accounting

-    Accounting Plus

-    Accounting Premier

-    AccountEdge for Mac Users

The program of MYOB Business Basics was developed with the purpose of tracking and printing sales invoices, holding a card file with those selling and buying, and making regular reconciliation of their bank's statements.

MYOB accounting software has the capability to connect with Microsoft Office like Excel or Word, where you can send letters or alerts to creditors, or work with Excel using the spreadsheet option, to adjust numbers, and is an innovation in business-specific and also has additional features such as the record of transactions or the reports of creditors with a report on aging.

The MYOB Plus is suitable for medium-sized enterprises. The package includes Payroll, Time and composite features. Payroll is clearly the businesses with workers who want compliance with pay regulation, and time charging for companies who compensate for their work. This may cover professions like Melbourne accountants, lawyers, advisors,, but also service industries like plumbers, electrical companies, etc. This software has 140 + reports available.

Mac account Edge is MYOB Premier's counterpart and has all of the same functionality, with the exception of the payroll.

You need to list the features you require, compare the features of each package mentioned above and then download the appropriate MYOB product on your site to select the MYOB Small Business  Accounting Melbourne  that is the best for your business.  

Why You Need to Think About Your Business Exit Strategy Now ?

Business Strategy you need to think about 

You are obviously much more concerned with the present than the far future in the heat of running your business. Like most business owners, it's undoubtedly one of the farthest items in your head as you find the quitting plan–the final stage of your business life.

 However, your exit must be considered much earlier than you might expect to be a successful exit strategy. The earlier you decide to prepare, the better the outcome of your departure.

Who are the buyers? 

Strategic buyers:  Strategic buyers are usually other companies that want your products, customers, locations, and footprint (probably you're current competition). They will have their own processes, staff, and strategies in place and will probably adapt and streamline your business to their existing values and procedures, although they will retain some of your own processes.

Financial Buyers: Financial buyers are financial investors who would like to save in order to make a profit. Such owners may be conservative risk investors who wish to purchase a company that will operate with the current management or even family members who will support their families for a long time. They will mainly focus on your business's ability, scalability, and projections to function without you.

When they are buying,  when they buy your business?

Depending on the type of the buyer, their market strategy, and their goals for your business,  buyers assess three major categories within businesses:

1.  Market participation— Customer lifetime costs (customer lifetime value and acquisition costs) are considered within this category by potential buyers. In addition, they will also analyze the demand to determine if the market is growing or is declining.

2. Operations and Management-potential buyers also take account of your company's strength and continuity. Management, staff, technology, assets, products, and services are all involved.

3. Financials – Finance is the main category, which reveals all about a company: its quality, its soundness, and its growth potential.

How to calculate your R-value

For eg, a 15% growth and 20% EBIDA company would have R values of 35. R Value = Revenue growth percent + EBITD A percent Compared the R value and the two elements of R-value to those of other firms, corporate owners can then determine the best investment position.

Top Factors that will help business sell themselves

While R is a useful number, every business has much more than R. Potential buyers will evaluate the entire company on a granular level before they decide to bid. Focus on measuring, monitoring and improving the following factors which increase the value of your company to achieve market share, management, operations and financials in your own businesses that sell themselves.

Predictability makes it extremely attractive for potential buyers in every aspect of your business. New owners know exactly what to expect from your business with reported predictability. It can be very difficult to achieve predictability in service companies, but that is not impossible.

Service companies with subscription price models have a standard revenue flow that can be regularly anticipated. Customer relationships and contract provisions can also increase company predictability. Organizations with daily revenues and high costs spend wisely.


Revenue 

To potential buyers, revenue is extremely important and reflects the productivity of your business. Potential buyers will look at your income, but will also want to divide it in order to evaluate the various types of income and their quality. Of example, a long-term recurring, stable income is worth more than a transient, one-time project income.

Expenses

Naturally, potential purchasers will take into account your business cost. You are going to consider your expenses, direct, indirect, fixed and variable. Recommends that corporate owners transfer as many fixed costs as possible to variable costs. The outsourcing of non-core operations can do that

Business owners that, in order to accurately represent the true business expenses, it is crucial for us to quickly identify the personal cost incurred by the firm. Although it is often OK for corporate owners to pay through a business for food, transport, or even memberships in country clubs, they do not actually involve the cost of business. If potential buyers are shown in reports, the actual value of the company will be clouded.

Profits 

Is the company gaining money? This is question number one.

Specifically, potential buyers are looking at the company's business unit in order to measure income at a granular level. I want earnings and loss figures by product, service line and consumer to consider the driving forces behind the growth of the company, which are the top earners and the lowest earners.


Automation and operations

Your management, team and technology are included in this category. What are your current policies and procedures and how well do they work? Potential buyers must judge the business and take existing staff into account as collateral. For service companies, where people represent the company, this is in particular reality.

Potential buyers often look at digital data collection, interpretation and monitoring in relation to business operations. Are you using technologies that enable accurate metrics to be tracked?


Cash Collections 

Potential buyers want to know how efficiently you get paid. Automate billing and cash collections.

Tighten up your invoicing and use electronic payment as often as possible. Assess your days sales outstanding (DSO) and sales cycle. Consider whether changing the payment structure would improve your cash flow.


Market share 
Market share in some businesses is larger than in others, depending on the size of the industry. It is not so big a deal and it is very difficult to measure if you're operating in a limitless market where you will always run short of potential customers. If you respond to a certain, restricted client type, it is important to evaluate the value of your business by market trends and market share.


Scalability

The potential of a business to expand and improve largely determines a future return on investment from an investor. Your willingness to grow depends on market size, position and demand. However, scalability could also depend on geography, research and development or the ability to develop into additional product lines or models of service.


Projections 

The importance of outlining these expectations to potential buyers by illustrating that estimates are based on a number of assumptions. The outlook also adjusts when these expectations change. It shifted the responsibility to the presumed conditions of the business owner. Accountants in Melbourne provides all the business-related services.