Every registered business is expected to pay off its taxes. It does not matter how much they make; paying taxes is a responsibility every entrepreneur needs to carry to do business. Fortunately, if you are an SMB owner, you can explore several ways to minimise the tax you need to pay. This article would tell you the five ways you can save on business expenses:

#1: List down where your money is coming and going 

A list is necessary for two reasons:

First, it helps you remember how your money flows. Record-keeping in a small business should be done as meticulously as possible to make sure you do not miss anything. While you’re at it, ensure that all the receipts under the pieces are well-kept so you can use them as a reference later. It is also your legal responsibility to keep all receipts and official financial records for several years.

Second, the Australian Tax Office (ATO) asks more questions about tax deductions now more than ever. It is essential to equip yourself with the correct information, especially when talking about your business. The records could help you understand and access your data better.

#2: You can deduct donations from your tax

If your company conducts charity work, you can add them to your tax deductibles. This option applies to initiatives that exceed $2. The best thing about this is that you can claim the amount you donated via your tax return. It does not have to be cash. The amount you donated would be deducted from your taxable income. Therefore, you get a reduced to-pay amount by the end of the business year.

#3: Have a list of the things you can claim as a tax deduction

You need to familiarise yourself with items that you claim as tax deductions, so you have an idea of what you can refund later. Some of these might be transportation expenses, item purchases for work, repairs and maintenance, operating expenses, salaries, wages, contributions, and more. Check out the complete list here.

As always, make sure that you have the receipts with you. If you have questions about items you can claim for your tax deduction, you can always speak with your tax consultant so they can explain everything clearly.  

#4: Research and compare before making decisions

If you have no private health insurance coverage and you need to choose between a basic private health cover plan and a Medicare levy surcharge, always check the specifics of your options first. 

In this case, individuals without insurance earning more than $90,000 who opt to get the Medicare Levy Surcharge would, in total, have to pay 1% more in addition to the 2% mandatory tax for Medicare. 

On the other hand, if you compute and choose the basic private health cover plan, the total amount you need to pay for it would be much less than what you would pay for Medicare. 

#5: Get a tax consultant or a dedicated accountant

These people already understand the ways you can reduce your taxes and business expenses. They could alleviate your worries about taxation and boost your savings on your taxes in entirely legal ways.

Conclusion

Learning the different ways you can lessen your taxes is nothing to be ashamed of. If it is legal, it does mean you are escaping from your obligations. In fact, the recommendations listed above were specifically made to help small-medium businesses minimise their tax liability and maximise their income. Use the money you save to grow your business, pay your debts, and make more investments. 

To ensure that you have all the opportunities to deduct your taxes covered, make sure to seek SMB tax solutions from tax deduction tradesmen. Here at SMB+ Accounting, we offer a wide range of accounting services, including taxation, business advice, XERO/MYOB/Quickbooks consulting, and more. Get in touch with us to learn more about how we can help you. 

Every business owner aims to run their business seamlessly. When it comes to tax matters, nobody wants to be paying more than the right amount. That is why it is vital to have well-organised and efficient financial records. It will help you avoid issues during tax time and alleviate the risks of paying the unnecessary amount due to accounting issues.

Every company should be updated with the approaching tax deadline to avoid cramming when papers and records are to be submitted. Organisation is essential when getting ready for tax time. You can use the various tools, software and resources that are available nowadays. They are user-friendly and can help the business organise its transactions efficiently.

Consider the following tax tips:

Commit to a clean bookkeeping process

Effective and organised bookkeeping is the best tool for business owners to reduce the tax season’s stress. With today’s various accounting tools and software today, there’s no excuse that your accounting department will be stuck with the stressful manual methods of recording and balancing transactions. These tools are automated and pose higher accuracy than the manual accounting method.

Every company should ensure that the following essential bookkeeping processes are done appropriately:

  • Monitoring income, sales and profit
  • Tracking various expenses
  • Creating, modifying and sending invoices
  • Managing the business’s overall bank transactions

When your financial records are all updated and organised, you will avoid having penalties due to incomplete or incorrect tax returns.

Clear monitoring of every business expense

Some small business owners disregard claiming their business expenses, mainly because they lack a reliable and efficient system for documenting every expense coming out. There should be a receipt for everything you pay so that you will be qualified for a GST or a tax deduction. 

Use a system to document all your receipt data, expenses report and track mileage. You can also choose a tool that can help you sync all accounting processes in one. 

Make sure to have separate business and personal financial records

It is crucial to clearly divide the personal and business financial records, specifically the expenses. This will help in making it easier to claim the proper deductions from your tax return. These records will also be used during an audit.

The following steps will help you recognise and separate your personal and business finances:

  • Have a separate bank account for your business. You can also designate a credit card and use it solely for business purposes. 
  • Avoid combining your personal expenses with your business expenses. For instance, buying a printer ink for your home and office should have two different receipts.
  • Allocate a set salary or a standard drawing from the business account each month to learn how your business income will be taxed.

Always consult with a professional accountant

There are times you’re not really sure how to organise business transactions before putting them on record. You may not yet know which accounting software will be best to use. Or, you may need further information on how the tax law works in your area. This is why you need to consult with an accountant. A professional accountant will help you organise your financial transactions and prevent tax issues in the future.

Conclusion

Bookkeeping can be a stressful process, but this is an integral part of the business. To make your tax affairs simple and free of errors, it would be helpful to seek assistance from a professional accounting firm to support your business’s long-term financial matters. 

If you’re looking for accountants in Sunshine Coast, QLD, SMB Accounting has the best to offer. We can help you with your taxes and manage your businesses’ finances. Contact us today for more details. 

Managing your business without the help of an accountant is a business that’s doomed to fail. From compiling reports and tracking expenses to understanding tax rules and handling the audit process, an accountant’s responsibilities are invaluable to the survival and success of any company! But apart from all the tasks that they do, accountants are actually one of the driving forces that help you save money on your day-to-day operations. 

Here are five areas of business where they can deliver cost savings to your company.

Handles Cash Flow Management

Any business, whether big or small, heavily relies on the strict management of expenses and earnings. Your accountant will work with you to develop a cash flow statement to help you monitor how much money goes in and out of your company. It’s now up to you to decide whether you need to reduce costs or make price adjustments to keep your cash flow at an acceptable level!

Provides Excellent Bookkeeping

Keeping detailed and accurate records of all financial transactions in your company is also one of the most important duties of an accountant. But more than that, they can also develop a more efficient record-keeping system for your operations. This saves you time and allows you to focus on more important business dealings that require your full attention.

Identifies and Manages Mistakes

A competent accountant can look over your paperwork and help streamline the financial process to avoid any costly mistakes. 

If for some reason, you submitted an incorrect tax return, then that could cost you by being penalised by the Australian Tax Office (ATO). You will then be required to pay back the taxes owed from previous years plus penalties! However, having an accountant you can rely on will make sure this would never happen to you—or at the very least, they know how to remedy and rectify any mistakes made!

Maximises Tax Deductions

No one expects the business owner to manage an entire business, make important decisions, and still be able to keep up with the latest tax rules. That’s where a tax professional like your accountant comes in to help you with your tax deductions. 

If they know exactly what they’re doing, they can save you even more money by claiming more tax deductions that even you wouldn’t have noticed! The result is having a lower taxable income that will reduce how much tax is owed by the business.

Grows Your Business

If you want to see your company transform from a startup to a highly profitable business, then working with your accountant is what you need to achieve that. Treat them as a critical advisor to the growth of your business since they have the experience and the unique financial perspective you need to make important decisions. They can help you develop a sound business plan and make sure your goals are achievable, realistic, and financially sound.

Conclusion

Beyond the number-crunching and financial reports, your accountant can save you money in ways you can’t always imagine. It’s simply what they do best! As a business owner, you would do well to take advantage of their knowledge and expertise if you want your company to succeed.

Entrust the growth of your business in the capable hands of SMB Accounting! We are a reputable accounting firm composed of tax professionals, audit specialists, and business accountants offering outstanding services to our clients in Brisbane, Melbourne, Perth, and the Sunshine Coast. Get in touch with us today and become our partner!

Looking for ways to save on tax? Superannuation is one of the most effective ways to do this, and there are ways you can contribute to your super, depending on your personal circumstances. Generally, you will pay 15% tax on superannuation contributions from your pre-tax salary, which includes employer Super Guarantee and salary sacrifice contributions. 

The earnings you make on your money within superannuation will be taxed at a minimum of 15%, but if you’re getting pension through your super, your earnings will be tax-free. Now, here are tips to save on tax with super: 

Don’t Go Above the Caps

When you make contributions into your super, don’t go above the cap. Why? When you exceed them, your tax advantages will no longer be applicable, and your super contributions could be taxed up to 94%. 

Seek Professional Advice

Tax can get complicated, which means you should consider discussing your personal situation with an accountant. If you earn a higher income, it would be helpful to boost your super as this can reduce your marginal tax rate. Those who are earning a lower wage or on a break from their career would help to look into opportunities that can help you contribute to your super, and that’s something a professional can help you with. 

Have Salary Sacrifice

Another way to save money on tax with the use of superannuation is to ask your employer to pay some of your salary into the super. Therefore, it’s called salary sacrifice, which is usually on top of the Superannuation Guarantee minimum percentage payments. 

Before you ask your employer to do this, it’s essential to check first how the company treats salary sacrifice contributions. 

Consider Government Co-Contribution

The amount you earn and contribute to your super will determine whether you’re eligible to receive a government co-contribution and for how much. If you’re eligible, the maximum co-contribution is $500 every year. 

Consider Personal Super Contributions

You can boost your super by adding your own contributions. Your personal super contributions are the amounts you contribute to your super fund from your after-tax income. Keep in mind: personal contributions are non-concessional contributions that will count towards the non-concessional contributions cap unless you claim a tax deduction for them. 

Use Spouse Contributions

If you’re in a relationship and have made contributions under the threshold to your spouse’s super fund, you may be eligible to get a spouse contribution tax offset if your spouse was under 70 at the time the contribution was made. 

Conclusion

There are plenty of ways to save on taxes, and one of them is using your super. Now that you know the ways you can do this, why don’t you start saving on taxes? If this is too complex for you, it’s crucial you seek professional advice from an accountant to help you navigate your taxes. An accountant will provide you with the best solution that will help you better save on taxes. 

So, your first step is to hire an accountant, and from there, you can develop ways to save on your taxes. 

SMB Accounting has the best accountants on the Sunshine Coast. We can help you save more on taxes. Contact us today to get started!

 

Several jobs require wearing a uniform for different purposes. It can be a standard operating procedure to distinguish different personnel in the workplace. A uniform is an aesthetic and functional choice common in hospitality, dining, and event sectors. They can serve as a more practical option for performing different tasks with the wearer’s safety and protection in mind. This is necessary for volatile workplaces, common in construction, plumbing and cleaning services.

Most uniforms need to be distinct to a particular brand of a service provider, making them a costly expense if you’re shouldering its purchasing costs. Thankfully, it’s highly likely that you can get decent cashback during tax repayment season.

 

How to get your cashback from work uniform purchases

The most important requirement to claim a tax return is to ensure what classifies as a business expense. In the case of uniform purchases, you need to ensure that it qualifies under specific categories to receive a cashback.

In this article, we’ll share a three-step guide illustrating how you can certify your tax return for work uniforms.

 

Step #1: Confirm if you own a compulsory uniform

Compulsory uniforms are mandatory clothing employees need to wear in the workplace. It usually contains the company logo together with your place of work. The entire attire is considered a compulsory uniform, including single items such as shirts or ties, even if it doesn’t include branding logos. However, it must be a company-mandated brand, colour or style option that you should wear.

In contrast, non-compulsory uniforms are clothing pieces that your employer encourages the staff to wear but doesn’t enforce it. Unless the uniform is registered with the AusIndustry, you cannot claim that your work clothes are part of the registered uniform.

Besides brand-specific apparel, protective clothing and costumes can also count as compulsory uniforms if they’re necessary to perform your job. This covers people in trade businesses or performers who need to be in character for a role in a paying gig.

 

Step #2: Confirm your laundry expenses

Besides the costs of purchasing your work uniform, you also have the right to make a claim or the laundry expenses for maintaining your uniform. This should account for the general acts of washing the clothes through a laundromat, from washing to dry cleaning when necessary. It’s easier to compute the values if you’re using a laundromat. Doing the washing and ironing yourself, however, makes for a more complicated calculation.

 

Step #3: Check if you have company allowance for purchases and maintenance expenses

Some companies provide reimbursements or laundry allowances, especially if their uniforms need to receive deep cleaning before use. Thankfully, you can still claim a deduction even after receiving a subsidy. However, it’s necessary that you claim the corresponding deduction on your expenses and not on the full amount of your allowance.

 

Conclusion

Being extra cautious about your work expenses isn’t something you should be conscious of. The time you spend while employed is enough to give you the right to claim what’s yours, whether in the form of a salary or a tax return. If you’re not too adept at handling your own accounting, you can hire an accounting expert to supplement your tax and bookkeeping needs.

If you’re looking for a reliable accounting firm on the Sunshine Coast, we can help. At SMB Accounting, our professional accountants we perform different forms of tax services, from trust account audits to individual tax returns. Contact us today at 1300-854-159.

Keeping accurate and up-to-date financial records is vital in business. If your books are untidy, it affects all aspects of your company. You won’t be able to pay employees or contractors on time, make ill-informed executive decisions, and hinder your growth. 

If you are busy, though, you might not have time to organise your business’ finances. If so, you should consider hiring a small business accounting firm. Here are the benefits of having a third-party provider handle your company’s finances.

 

Small Business Accounting Providers Save You Money

When you hire a tax professional, you streamline payments and financial documents preparation, helping you save your resources in the long run. In business, time is money. If you hire someone to itemise your expenses, pay your bills and send invoices, you free yourself up to manage other aspects of your company. 

Also, getting a contractor is more affordable than having an in-house accountant. You won’t have to train a contractor or provide medical and dental benefits for them. Since compliance rules and technology change often, you don’t have to worry about your employees making decisions and practising outdated information.

 

Accounting Service Providers Ensure Department Continuity

When you have an accounting provider, you have a team of individuals dedicated to your account. If you have an employee who takes a vacation, falls ill or transfers to another company, you won’t have to worry about disruptions to your documentation. Since you’re hiring professionals, you’re sure to minimise the chances for errors or fraud.

 

Accounting Service Providers Help In Risk Management

Outsourcing financial management means your contractor is responsible for keeping up with tax codes and ensuring your business is compliant. They also have safeguards against internal fraud. If you have an internal employee doing your accounting and bookkeeping, you risk your financial privacy. You are not sure how long your employee will stay with you, and they might discuss your finances with outsiders they leave. A small business accounting firm ensures that you keep your business matters confidential.

 

Accounting Service Providers Give You Timely Reports

When you outsource services, you will get regular, timely, and accurate reports. These allow you to safeguard your business’ health, plan for audits, avoid unnecessary costs like penalties and fines, and prepare for filing taxes. Your accounting services will likely have best-in-class management processes, timing your receivables and payables perfectly.

 

Accounting Service Providers Use The Latest Technology

High-quality service providers test the latest technology in bookkeeping, accounting, and time tracking before using these in their accounts. Your company will benefit from the access to these solutions; you don’t need to buy tools, learn how to use them, and ensure that they are up-to-date. 

Also, bookkeeping and accounting service providers let you make data-driven decisions that reduce costs and improve your cash flow. They help you find the best ways you could increase your revenues and boost your growth.

 

Conclusion

When you’re managing a business, you want to do what you can to keep it growing. However, without proper financial management, your company will find it hard to maintain its cash flow. Outsourcing your bookkeeping and accounting will streamline your finances, letting you focus on other things in your business that need attention.

Team up with SMB Accounting for all your small business accounting needs. We work out of the Sunshine Coast, helping entrepreneurs and business owners set up and maintain their enterprise’s accounting systems. Sign up for one of our packages or contact us to learn more!

As someone who has been running a small business, you may feel that bookkeeping is a time-consuming and tiring task that you would rather avoid at all costs.

Although there are other tasks to worry about or consider whenever you work on your business and ensure that it’s running smoothly, the truth is that your books bear the same amount of importance. Unfortunately, many business owners end up overlooking this particular and end up neglecting their bookkeeping entirely, making way for a host of problems in the long run.

What happens when you neglect your bookkeeping?

At this point, it’s best to understand that overlooking your bookkeeping tasks will prove to be a grave mistake when you look at the after-effects. In fact, failing to keep an eye on your records and figures is a problem that can create a multitude of problems for you and your business.

Considering that bookkeeping itself is critical for ensuring that you have all the necessary reports and insights to address different parts of your finances, these are three problems that can arise from neglecting it: 

Outcome #1: You are bound to run out of money before you even realise it

Whether it’s because you didn’t bother to lodge your returns or delayed your receipts and receivables, you’ll run out of money by making this simple mistake. It may sound pessimistic, but this is the absolute reality: it is easy to lose a grip on your cash flow and strip your business of the funds it needs to grow when you fail to maintain your books. 

In fact, not maintaining your books will eventually put you in a tough financial spot because you lose the ability to manage your cash flow as best as possible. Furthermore, such an outcome can take place because the inability to handle your finances can lead to a host of problems, such as:

  • Being unable to track money that is owed to you by customers, clients, and partners (receivables)
  • Not knowing how much you need to allocate when settling your payments and debts, leading to some relationship strains along the way

Outcome #2: You won’t be able to make the necessary decisions to help your business grow

Another undesirable outcome that stems from not managing your books as well as you should is that it inhibits your ability to forecast and make smarter decisions. In the end, this will hinder you from maximising opportunities that lie ahead.

You see, failing to reconcile your accounts and update your books as you should can cause information depletion that can prove to be the biggest hindrance to your business’s growth. When your negligence piles up, you’ll end up at that point where you won’t be able to make smart decisions since you don’t have the accurate data or insight that is required for critical decision-making processes!

Outcome #3: You will commit different errors when it comes to your payroll

If you were to look at a list of cases where businesses didn’t properly handle their payroll errors, you’ll quickly realise that many of them are rooted in bookkeeping negligence.

While it is no surprise that your business relies on employees to stay afloat, being negligent with your bookkeeping can still lead to severe problems since your records are crucial for paying them properly. Once you constantly ignore your books to the point where it feels like second nature, you’ll be unable to track and distribute the pay benefits of your employees accurately, causing several outcomes to arise: 

  • Failing in the collection of taxes
  • Overpaying employees who may not report the overage
  • Rushing payment to employees

Conclusion

Even though it is becoming increasingly clear that businesses must pay more attention to the way they handle their bookkeeping, it also helps to be more aware of the potential issues that come with being negligent. Once you’re familiar with what can possibly happen if you keep being complacent with your books, you’ll be able to steer your efforts in the right direction and remain consistent until everything gets back on track! 

If you’re looking for a skilled expert on SMB bookkeeping in Australia, look no further because we’ve got you covered. Get in touch with us today to see how we can best serve your needs!

Tax returns are an important aspect of your professional and financial responsibilities. Understanding how to do them just right may just enable you to take advantage of work-related and income-generating expenses for claiming at tax time. Identifying expenses that are acceptable tax deductions will help you reduce your taxable income. Perhaps the expense was directly related to performing your work duties, or you spent money that was never reimbursed by your employer. If you have an official record of the expense, then you may just be eligible to claim something from it at tax time. Here are 7 tax deductions you can possibly claim for your income tax return as a result.

Travel Expenses

Travelling to and from your usual workplace may not count when claiming expenses, but other work-related vehicle and travel expenses are valid. These include using your personal vehicle to attend conferences and seminars, requiring your car to perform work duties (ex: transporting materials for a minor project), and accommodation expenses when travelling for work is necessary. 

Home Office Expenses

Since work from home has become a norm due to the COVID-19 pandemic, you may have found yourself spending plenty of money on your workspace just to do your work. Anything from phone and internet expenses to computer consumables like stationery, printer ink, and paper can be claimed as tax deductions. This is mostly applicable to home office equipment, where you can claim the decline in value for items over $300 or the full cost for those amounting to less than $300. 

Industry-Related Expenses and Deductions

When working with tax advisors near you on completing your income returns, be sure to ask about any industry-specific work related expenses that you are eligible to claim. This will vary depending on the industry, so investing in a professional who knows how to get the most out of your work-related deductions using the updated guidelines is extremely valuable. 

Work-Related Clothing and Laundry Expenses

While this seems like a stretch, your clothing and laundry expenses may qualify for deduction claims. These are clothing items explicitly purchased for work, including uniforms, protective clothing, daily office wear, and others. Cleaning costs are also included as work-related expenses that you can claim. 

Keep in mind that conventional clothing or non-compulsory workwear will not be counted as expenses that can be claimed. You must also provide documentation for these costs, including diary entries and official receipts. 

Gifts and Donations

Giving gifts or donations to organisations like charities may also be claimed as a tax deduction, given certain rules. Any contribution made above $2 to a deductible gift recipient can be claimed, while different rules may apply based on types of gifts. 

Miscellaneous Work-Related Expenses

Even after you’ve gone through the list, there may be other work-related expenses that only an accountant can help you spot. This is highly dependent on your unique work and personal circumstances. Some of these expenses may include overtime meals, learning material (e.g., books, digital information, periodicals), and union fees. 

Investment Income

Claiming investment income tax deductions is possible if you’ve received interest on your savings, dividends from investments, rental payments from an investment property, and others. You may even be able to claim money spent on investment advice. 

Conclusion

When it comes to making your claims for deductions during tax time, there are many opportunities that you can take advantage of. Whether it’s miscellaneous work expenses or any gifts and donations you’ve made, there’s a way to make a claim on your tax return where it’s appropriate. Don’t be afraid to ask an accountant to guide you on all the possible claims you can make; this is money you’re entitled to after all. By doing so, you can be as prepared as possible for tax time. 

If you need accounting firms in the Sunshine Coast, then SMB Accounting can cater to your needs. We do individual tax returns, small business accounting, SMSF audits, and provide Xero accounting software. Get in touch with SMB tax solutions today for your tax returns and more!

Startup companies and small and medium enterprises (SMEs) might feel the excitement when launching their business for the first time. Finally putting a business out to be exposed to the world is incredible and gives proprietors a sense of fulfilment. However, many entrepreneurs who invest in their startups often never make it to a full-scale company, often due to financial preparation failures.

Running a company is more than just driving returns on investments and pushing for growth; it entails plenty of work on the money side of things. One thing that can save most startups is investing in small business accounting services to tackle taxation, budgeting, financial audit processes, and other related matters. Here are some startup tips that SMEs can use based on what professional accountants believe are the most important for growth:

Find Out Your Business Structure Straight Away

Many options must be considered when investing your time and resources into a startup, starting primarily with how the business will operate. First off, you’ll have to consider what business structure you plan to implement, whether it is a sole proprietorship, company, trust, or partnership. These will generate different results towards your future business goals, so consider the way your company will operate to get the best results. Many small business accounting professionals can often help startups decide which method best suits their model. 

Consult Professional Services Before Setting Up

Various startups often launch without considering the bigger picture of business management and operations. It takes a particular degree of preparation to ensure that all documents and registration files are in place, ensuring that no issues arise throughout each year. Tax consultants can help with the annual bookkeeping and records for duties to be paid, while other accountants can provide business plans and growth strategies to push a startup into a good position. 

Budgeting Matters Off the Bat

Many SMEs fail to consider their budgeting blueprint from the get-go, which often leads to cash flow issues and finances in the future. All businesses run on money, and every local enterprise has to pay taxes annually to continue operations. However, when you don’t prioritise budgeting, you can easily lose money, and the whole business structure will collapse. Investing in a tax professional’s services can help structure a financial plan to help small businesses with various investments. 

Create a Financial Management System

Using software and other tools, tax consultants and professionals can effectively manage a company’s books. By implementing a personal financial management system for a business, you’ll save plenty of time and remove the stresses of dealing with money matters. Payroll, tax document management, and financial audit processes can be done quickly using software that automates and removes the manual procedures that can cause costly mistakes. 

Build Connections With Other Business Entities and Owners

Startups can make it big with a broader range of connections. Knowing people and having a good network of friends and business partners can help with business growth. It also builds good habits and strengthens proprietors’ mindsets knowing that business is a constant learning field. Having the right people around and building connections with others will help your startup grow past the initial stages. You can even run B2B marketing to work together and strengthen your presence on the market. 

Conclusion

Startups are the lifeblood of the modern business market, as some of the best companies come from the minds of individuals that are dead-set on making it in the world. With various startups filling gaps that people need to complete tasks, it is also just as essential to ensure that businesses survive past the initial phases of life. 

SMB Accounting is a small business accounting firm home to various tax professionals and other entities ready to help startups succeed past their growing phases. If you need financial audit procedures or different strategies, get in touch with us to learn more about finances and business operations. 

 

Small business accounting can often be challenging because most of these companies aren’t well-staffed enough to handle their own financial duties. It often becomes the proprietor’s duty to file all monetary transactions and run taxes and salaries monthly. It isn’t uncommon for things to be left out and confusing, which is why an audit process is necessary for most small and medium enterprises. 

Beginner business owners might not be well-versed in financial matters, as it is definitely tricky, especially if the company kicks off quite well. They might miss out on things, which can be costly when it comes to yearly taxation and other investor relations. A financial audit will help your business by generating more confidence from various people working for and with you. 

Why Invest in a Financial Audit Process

There are plenty of benefits of outsourcing financial services to a professional accountant, especially those who conduct small business accounting for a living. Regularly running audits can be great to show accountability and better business practices, so here are some reasons why a financial audit will be a lifesaver:

  • An Overview Statement Is Invaluable

Auditors that have completed their findings will report to you and give you an overview of your finances. This document will show how well your business is performing. Without the small mistakes and the errors, you’ll be able to make more informed decisions about where to invest your money next. 

  • Your Credit Rating Improves

A steadily expanding business requires you to let all financial entities know about the growth. Regularly running an audit process will give stakeholders and investors a nice update on where their money is going, giving your business a more trustworthy image. If the banks and lenders know their money is going to the right things, they will be more likely to close deals on future loans because everything is listed down correctly. 

  • A Fresh Set of Eyes Is Always Good

Crunching numbers and various statements is difficult for anyone. Doing this without much knowledge will often result in errors and overlooking important details. However, with a fresh set of eyes to conduct small business accounting, a financial audit will show things you might have missed while running your own processes. The auditor might also find any serious flaws in your system and make suggestions regarding fixing them. These moves might even be the difference between financial success in the future and bankruptcy. 

  • Reliability Ensues

If your company moves towards the business world’s upper echelons, regular audits in your earlier days will show the more prominent investors that you’ve always come prepared. A statement regarding finances is what the conglomerates want to see, making them more inclined to invest in your future endeavours. Reports like audits also show that you have been paying taxes and other duties, making you a more reliable partner they can deal with in various projects. 

  • You’ll Have a Clear Vision of the Road Ahead

Finances determine the success and failure of a business. If you’re preparing financial audit statements often, this means that you’re always being given a clear view of the playing field of the near future. With this knowledge, you can make more educated decisions on where to go and what to invest in for improved growth. Any business will benefit from the clarity given by an audit process, which is why you should invest in small business accounting services. 

Conclusion

Accounting is challenging for many people, so outsourcing things like bookkeeping and financial audits to small business accounting firms can greatly assist. Having a dedicated accountant can reduce the load on your shoulders as a proprietor and definitely promote accountability and trustworthiness. 

SMB Accounting is a small business accounting firm in Australia that helps clients with financial audits and other specialised money management needs. With a wide range of financial services, we can help your company through reports based on audits run for your business. Contact us to learn more about having an audit process conducted.