Beyond Tax Time: Five Ways Accountants Can Help Your Growing Business Throughout the Rest of the Year
Instead of contacting an accountant right before your taxes are due, you may want to consider working with these professionals throughout the year. This is especially important if your business is growing and you have more financial elements to track than you did before. Here are five ways an accountant can help your company throughout the year:
1. Setting up bookkeeping and accounting systems
As your business grows, it becomes increasingly important to have a reliable way to track income and expenditures. If you are currently using basic software, a spreadsheet or any other simplified methods, you may want to consult with an accountant about bookkeeping or accounting software. They use this type of software on a regular basis and can give you advice on which features your company needs, as well as how to implement it.
2. Saving time at tax time
If you wait to do most of your accounting at tax time, the process can be long and drawn out, as you search through records and try to remember expenses from months past. However, if you work with an accountant throughout the year, they can help you avoid a messy process at tax time.
Instead, they can help you find ways to track your numbers throughout the year so that when it's time to complete your taxes, they have all the information they need already uploaded into software or an app.
3. Maximising deductions and guiding strategic spending
In some cases, if you are buying a large item for your business, you may want to consult with an accountant about the tax implications of that purchase. For example, if one type of purchase yields a larger deduction than a similar type of purchase, your accountant can direct you toward it. Ultimately, that helps save your company money by reducing its tax burden.
4. Developing business plans
If you work with an accountant on a regular basis, they can do more than just help you keep the books in order and advise you on tax-related issues. They can also help you develop business plans. Accountants understand numbers well, and as a result, they can look at your numbers and help make projections about what your company should do next. As a result, they can be a useful resource when trying to develop business plans, especially for lenders.
5. Helping with auditing
If the ATO contacts you about an audit, accountants can help with that as well. They can help match your tax return information to the records you have on hand and explain to the ATO why you made certain claims and how they are justified. Working with an accountant during an audit can help you avoid fees, penalties or more tax bills assessed.