8 Reasons Your Small Business Needs a Tax Accountant

Posted on July 11, 2022

When you own a small business, the money matters never end. When you first start out, many business owners choose to look after all aspects of their finances themselves, including taxes. It can be tempting to keep operating this way, whether it be to save money or just because it seems impossible to hand it all over to someone else.

However, it is easy for details to get overlooked when you are trying to manage every aspect of your business yourself. As your business grows and your finances become more complex, it is likely that your business finances and taxes will quickly outgrow your expertise.

But if there's one area of your business that is worth handing over to an expert, your taxes are probably it. Tax accountants deal in facts and figures, not feelings. They will not only get your taxes done error-free and in record time, but they will also be able to give a better idea of where your business is heading. They can help you make better informed business decisions and spot opportunities you may have missed.

Here are eight great reasons for consideration:

Tax accountants maximise tax deductions

Tax accountants are highly trained tax-deduction-seeking missiles. They know precisely what you can and can't claim and when is the optimal time to claim your expenses. If you don't know the difference between 'temporary full expensing' and 'depreciation' or which one is right for you - that's a sign your small business will benefit from the services of a tax accountant.

Avoid audits

No one wants to be audited. It is stressful and time-consuming. Small businesses are often audited due to errors in their tax reports. When you use a tax accountant to prepare your tax reports, you can be confident that they will be free of errors and items that might raise red flags for the ATO.

Compliance with tax obligations

It is a tax accountant's job to be up to date with the latest tax laws. You probably have better things to do with your time than read up on the latest depreciation treatments or tax implications of cryptocurrency.

Accounting errors, especially tax-related ones, can have expensive consequences. Your tax accountant is there to ensure this doesn't happen to you.

Better business decisions

An accountant can offer professional advice on the financial implications of any business decision, including taxation.

When is the right time to engage a tax accountant? It is never too early. By involving them when you are writing your business plan, you will benefit from financial analysis and projections. It's also never too late to get an accountant on board. They can help with business decisions by providing the facts and figures.

GST grief

Taking care of your GST obligations, on top of running your business, is no easy feat. Using a tax accountant to stay on top of it all will ensure you pay the correct amount at the right time. They can also manage any GST adjustments you need to make for private use.

If you use cloud-based accounting software, they will make it all happen in the background - just like magic.

Capital gains WHAT?

Did you know that small businesses are entitled to capital gains tax concessions? The concessions are available to small business entities or where the net CGT assets of the taxpayer (plus its connected entities and affiliates) do not exceed $6m.

If that sentence makes no sense to you, it's time to get a tax accountant.

Increase your chances of securing finance

If you are seeking bank finance to fund your next business venture, you need to prove to the bank that you can pay back the loan. Accountants are well practised in preparing these sorts of financial reports for banks. They can also help you determine which type of business finance best suits your purposes.

Save your timeā€¦ and your sanity

Is doing your own taxes the best use of your time? Let's be honest, your time is probably better spent working on your business.

If you are not a tax accountant, preparing your taxes is time-consuming. Let's say you spend eight hours doing your taxes, and your time is worth $100 per hour to your business. That's $800 you have just missed out on earning.

By hiring an accountant, you can outsource your tax so you can focus on what matters most - your business. You will also have the confidence that a professional is looking after your tax affairs.

Small business tax experts

Most small businesses will only need a tax accountant for a few hours each month. At JSA, we are here when you need us. As small business specialists, we are experts in small business taxation. We're here to help your business thrive with fuss-free accurate accounting when and where you need it.

Meet your small business tax experts.

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