Your small enterprise tax time questions answered

This can be a visitor publish by accountant Daniel Hardy of Xero Platinum Accomplice agency Caveo Companions. Just lately, Caveo Companions was named the most effective boutique agency of the 12 months on the Australian Accounting Awards. 

With a brand new monetary 12 months upon us, you could be pondering, what’s subsequent for my small enterprise? Actually, you’ll probably have every kind of ideas about the place you’re at and the place you’re headed subsequent. The very best individual that can assist you work via all of it? Your accountant or bookkeeper.  

Earlier this month, Caveo Companions took to Xero’s social channels to ask small enterprise homeowners which questions they needed answered come tax season. We discovered that a lot of you might be eager to grasp how we – as advisors – might help you arrange for a robust FY23. Under, you’ll discover our responses to your high queries – all that can assist you  nail the months (and 12 months) forward.

1. How typically ought to I see my advisor at tax time? 

To obviously perceive how your online business is performing, it is advisable to be having common conversations along with your advisor – and never simply at tax time. At a minimal, I’d advocate connecting with an accountant or bookkeeper at the very least 4 occasions a 12 months (or each quarter of the monetary 12 months). For those who’re solely seeing them as soon as in a blue moon, it’s unlikely you’re getting probably the most out of the connection. So as a substitute of ticking the tax and compliance bins come June and July, sit down collectively to create a technique for FY23, and map out an everyday cadence that can assist you implement your plan of assault. 

2. Do I want an accountant and a bookkeeper, or simply one of many two? 

Irrespective of how small your operation, partaking an accountant is a priceless and smart funding. Why? As a result of working a enterprise is complicated, and with out the steering of a professional skilled, issues like tax, payroll and compliance might land you in sizzling water. A bookkeeper performs an important function right here by offering up-to-date and correct monetary details about your online business. Collectively along with your accountant, they’ll provide a whole overview of your numbers to tell budgets, money stream forecasts and any outliers which may act as roadblocks to your objectives. 

Nonetheless, relying on the dimensions and complexity of a enterprise, some solo operators (like freelancers, for instance) really feel assured sufficient to do their very own bookkeeping. Whereas this works for some, it typically turns into more durable and more durable to handle as a enterprise grows. So, it’s at all times price weighing up whether or not investing in a bookkeeper will prevent time (and finally, cash and sanity) in the long term. 

3. How do I do know if I’ll finish with a tax invoice or a tax refund?

Earlier than 30 June, it’s a good suggestion to get in contact along with your advisor to start out tax planning. That is one of the best ways to grasp whether or not you’ll obtain a refund or a invoice from the ATO, and what choices you’ve gotten by way of minimising or fronting your tax to pay. Though the deadline has handed for FY22, you’ll want to make a remark to remind your self about this within the monetary 12 months forward – ideally round Could. 

4. Is a monetary planner the identical as an accountant? 

It’s a typical false impression that monetary planners and accountants do the identical job. Nonetheless, they’re very completely different roles in apply. A monetary planner might help you with retirement planning, managing investments, private danger safety and all-round monetary recommendation. Then again, an accountant is usually extra specialised in enterprise funds,  like tax commitments, reporting, budgeting, and normal enterprise steering. 

5. Past tax time, what worth can an advisor add to my enterprise? 

Good query. Past tax planning and shutting out the present monetary 12 months, an advisor can add large worth to your online business by serving to you create and implement a recreation plan for the subsequent 12 months and past, from forecasting to setting monetary objectives (and all the things in between). 

Past the numbers, many advisors provide expanded providers, resembling digitalisation assist and expertise attraction and retention methods. So, the subsequent time you meet, you’ll want to ask about their wider choices to get probably the most out of your time collectively. 

The brand new monetary 12 months is your alternative for a recent begin. Over the subsequent few days or even weeks, I encourage you to consider the way you’ll embrace this subsequent chapter to the fullest. As a result of – with the best assist – FY23 is yours to beat.

Daniel Hardy of Xero Platinum Accomplice agency Caveo Companions.