It is essential to understand that there are 2 types of accountants, so keep this in mind when selecting one for your small business. Several may be responsible for advising your business while some may focus on taxing and book keeping.
In this informative article, we’ll examine the common attributes of each of these accountants and emphasize their key points of focus. This will allow you to observe the differences between them and help you select which will work best with your needs.
Tax and Bookkeeping Accountants
The vast majority of accountants operate in tax and compliance. Their work descriptions focus on keeping monetary documents, Business Activity Statements, preparing tax returns with the local tax office as well as completing any other tax duties. Additionally, they also prepare monetary documents, which display the results for the business at the end of the year.
Tax and bookkeeping accountants are also involved in tax planning, which is discovering strategies to legally lower the amount of tax that clients pay out. Helping clients with their personal pension funds (SMSF, better known as Self-Managed Superannuation Funds) is another endeavor they’ve progressively begun undertaking.
Most will help their clients with book keeping and documentation, so that the accountant can set up their financial statements, balance sheets, profit and loss statements, and tax returns. Some also provide guidance on computer software, help clients utilize MYOB, Xero and other small business software packages.
Business Advisory Accountants
Business advisory accountants focus more on the assessment and appraisal of the business performance and look for methods to improve it.
They work together with their clients to organize budgets and cash flow predictions. They also implement management accounting, which uses monthly and weekly info to review financial results and figure out why a business didn’t perform as anticipated. The business accountant will then help the client put together cash flow predictions and loan proposals based on these results.
To help prepare a business for sale, a business accountant are generally asked to conduct business valuations for a client. A lot are dedicated to estate and succession planning, which is important as our population expands.
Tips For Deciding On A Tax Accountant
Your accountant must be able to outline your financial exposure and also the risk of being monetarily dedicated to the business you are investing in. The ability to assist you in planning your company’s forecasts and cash flow is important as well. This will help you have a clear idea of what’s ahead along with the targets you should accomplish.
Being able to comfortable converse your concepts and concerns is essential when employing a business accountant. It benefits the both of you in the future when business ideas are exchanged in a free fashion.
At W Advisory, our company has registered Chartered Accountants who are able to assist with your business needs on tax accountant solutions, tax return as well as bookkeeping support. We have team in Sydney and Perth.