How a Bookkeeper Can Boost Your Business

Whether you are hiring independent contractors, an accounting firm, or several accountants for your bookkeeping needs and a variety of finance management tasks, there should always be standards that need to be met especially in bookkeeping part as these ledgers and other documents are necessary to provide precise and accurate financial report.

Business Evaluation

A well-documented financial report can provide you pertinent information in order to evaluate the performance and assess the standing of your company against its competitors. As a business head, these are very vital in ensuring the growth of your business. These reports also involve trends which are great tools to determine the future of your business. So in order to accurately document the inflow and outflow of money, you will have to assert certain standards and detect particular indications which would result to quality bookkeeping.

online bookkeeping software

Organise Your Bookkeeping Systems

A system must be in order to make sure that every transaction is listed and sorted out. You can employ the aid of bookkeeping software so your employees can input data real-time. Having a centralized system would be a very efficient and effective means of collecting all the information necessary for your financial transactions to be laid out.

Sorted, Arranged and Categorized

If you are doing it manually, it helps that everything is sorted and arranged depending on the date and kind of transaction carried out. Having an itemized list of transactions would make things a lot easier for the people who will be working on accounting and auditing your finances. They won’t get stressed trying to match and figure out which transactions are similar and which transactions were really carried out. This also prevents double entries which can affect tremendously in the entire financial documentation process.

On Time

Bookkeeping of your accounts need to be prepared at a certain date before the tax filing deadline comes. Thus, entries from a specific time range must be collected prior to the date with allowable difference from the deadline. Also, the entries need to be accurate in every aspect. You wouldn’t want to get jailed and serve sentence for tax evasion.

Working on books

Conclusion

These are just some of the indications and qualities that appropriate bookkeeping entails. While everything may seem so hard to carry out, it would be a lot easier if you would hire a professional bookkeeper to do all the work for you. In Mandurah, Western Australia WW AMD Chartered Accountants provide a range of professional bookkeeping services outlined in this article. You could find a similar bookkeeping provider in your local area. This will save you a huge amount of time and effort which you can spend in other vital parts of your company or with your friends and loved ones.

Tips on Minimizing Your Business Tax

As a business owner, you don’t want to spend more tax than is necessary. It is also best to avail the services of the accountants, like Accountants Cherry Black, for consultations and proper tax filing. Yet, consider these top 10 tips from business tax accountants to help you get the best of tax deductions and refunds.

1. If possible, your taxable income should be deferred until the following financial year. The income receipt can be delayed by cash based businesses while invoicing can be deferred by non-cash operations.

2. Take advantage of a tax deduction by writing off old plant or stock before 30 June.

3. For year end expenses incurred but not yet actually paid by 30 June, claim an immediate deduction.

This includes employee salaries and wages earned but not paid by 30 June. In addition, staff bonuses also qualify for a tax deduction when it is a definite expense that the business has committed to.

Any maintenance and repairs are also tax deductible if billed and undertaken before the end of the tax year.

4. Instead of paying full income tax at 46.5%, split the income as company (30%) or lower taxed spouse (16.5% or 0%).

5. Physically write off the business’s bad debt before 30 June. This can only be done if you have proof that you have have genuinely attempted to recover the debt. Also, the debt has to have been shown as income before being written off.

6.Small Business Entity (SBE) concessions are available for businesses with a turnover of less that $2 million.

For example, prepaying expenses like interest, insurances, rent, subscriptions, rent and lease payments enables an immediate deduction.

7. Don’t get caught in the trap of spending money simply to qualify for tax deductions. Remember, you will only receive 30% back if you are a company held business.

8. Pay your employee superannuation contributions by 30 June in order to be eligible for the tax deduction of that financial year.

payment

9. Before the end of the financial year, repay any interest and principal on any loans borrowed from your company. If you don’t, the entire loan amount will be taxed at the much higher marginal rates. This may include using company assets like vehicles for private use.

10. Finally, in the event of a tough financial year, you can vary the PAYG instalment for the last quarter of the financial year.

Ideas On Selling Investment Property

The goal of an investment property is to make money for the owner; so when it comes to selling that property, making a profit is going to be a top priority. In many ways, selling an investment property is similar to selling a home, where you hire an agent to market the property to potential buyers. However, investment properties operate under different tax rules than the home you live in, so you’ll need to be aware of this. Here are some factors to consider when thinking about whether to sell your investment property.

The Neighborhood Has Changed

properties

If you purchased a good property when the market was down, you may have made a nice return, and it could be a good time to cash out. However, if the opposite has happened and the neighborhood is deteriorating, you might want to get out before property prices in the area fall too far.

The Property Needs Major Repairs

Whether it’s a crack in the foundation or a roof that needs to be replaced, if substantial repairs are needed and you don’t want to put the time, money and energy into it, it may be time to sell the property. However, you will need to disclose these issues to the buyer which may affect the property price.

The Property Is A Tax Liability

Owning property can actually raise your tax bracket, so that may be a good reason to sell, especially if you are no longer interested in being a landlord. Before selling, take note of the expiration of any potential tax abatements.

There Are Better Returns Elsewhere

When looking at your investment, you should consider all of your options. If you have had a property for a long time, it may have increased in value, which could be a good opportunity for conveyancing the property and diversifying the proceeds into other properties or investments, such as stocks and bonds.

The Importance Of An Accountant

Over-relying on free or inexpensive accounting service tools for business analysis can prove ineffective and costly for many small business operators. Instead, it’s always wise to involve qualified accountants.

When dealing with professional accountants, it helps to know what to inquire and when. That way you can be sure that you’re getting your money’s worth.

What’s the best way to get in touch and how often?

Cultivating a frequent and healthy relationship with your accountant is essential. by frequent we mean weekly, monthly or bimonthly. Popular ways to get in touch include phone or via social media handles (Skype, Google, Facetime).

Preparing for the tax season

accountant

The primary reason why small business operators hire accountants is to get help with tax preparation. Get informed of new tax laws as well as deductions or claims you can take advantage of to minimise tax burdens. Its advisable to seek such counsel before the deadline of April 15.

Ongoing considerations

It’s in your best interests if your accountant gets to know more about your business as time progresses. This provision allows the expert keep you aware of new developments and to adjust to them in the shortest time possible.

How accountants can help grow your business

With a proper foundation, a qualified accountant can help small business achieve positive growth. First, you must build a robust financial model and update it regularly.

Keeping track of cash flow

Projecting business cash flows can be a daunting task. However, with the help of a qualified accountant, such an exercise becomes much easier. Once you develop a clear projection, the next step is to stick to it.

Understanding your break-even point

Understanding your business’s break-even point is essential in determining aspects such as pricing and profitability. Accountants can help you estimate how many products or hours you need to work to break-even.

Assessing your business value

By examining your financial blueprint and applying the discounted cash flow analysis, your accountant should be able to estimate your business’s worth.

Negotiating business contracts with accountants

meeting

Though accountants are not licensed to practice law, they can collaborate with your attorney to offer a better experience.

Finally, remember to strictly follow your accountant’s advice, its the whole point of hiring them in the first place.