Why Should You Know the Difference Between Bookkeeping, Accounting and Tax Return in Australia?

In modern taxation methods, taxes are levied in money. As seen in the news, techniques of taxation used by authorities often raise politics and economical controversy. Tax collection is performed by a state and federal government department.  When taxes are not entirely paid, civil charges or even criminal charges might be imposed on the non-paying entity or personal.

Australian tax returns for the financial year ending 30 June are usually due on 31 October of the same year. Extensions can be made available. Each year, ATO publishes TaxPack, a free official document built to support individuals submit their return. TaxPack can be obtained free from the majority of newsagents and can also be downloaded from ATO’s internet site (http://www.ato.gov.au). Extensions can be available to those individuals utilizing a Authorized Tax Specialist managing on an extended lodgement system.

Tax return can be also submitted via an online tax agent or utilising ATO’s e-tax computer software. In Australia, individuals and taxpaying companies with taxable earnings might need to submit different returns with the ATO with respect of several sorts of taxation.


 

A tax refund or tax rebate is a refund on income tax when the tax liability is lower than the taxes paid.Taxpayers might get a tax refund on their tax if the tax they need to pay is under the total of withholding taxes and forecasted taxes that they paid, in addition to the refundable tax breaks that they claim. Tax refunds are funds given back at the conclusion of the fiscal year. 

Bookkeeping in the context of a business is just the recording of financial transactions. Transactions contain expenses, sales, receipts and payments by an individual or organization. Many people wrongly think about accounting and bookkeeping being a similar thing. This confusion is understandable because the accounting process includes the bookkeeping function, however is only 1 part of the accounting practice. The person who is responsible for accounting is known as accountant. Reports from the recorded financial transactions noted by the bookkeeper and data files with government bodies are produced by the accountant. There are some common methods of bookkeeping such as the single-entry bookkeeping system as well as the double-entry bookkeeping technique. However while most of these programs could be thought of as “true” bookkeeping, almost any procedure that necessitates the documenting of financial transactions is a bookkeeping process. 

The bookkeeping procedure is usually something carried out by a bookkeeper. This job is commonly labelled as an accounting specialist or accounting staff. Day-to-day monetary transactions of a business are noted by this staff. A bookkeeper is usually in charge of posting the “daybooks”. The daybooks contain purchases, income, receipts, and expenses. The bookkeeper is responsible for ensuring all financial dealings are captured in the correct daybooks, vendors ledger, customer ledger and general ledger. The bookkeeper brings the books of account to the trial balance position. An accountant may prepare the income report and balance sheet using the trial balance and ledgers made by the bookkeeper. 

So where should go to find out more information about reputable tax accountants?  Well, first step is to research for tax and accounting professionals in your local area, either in Sydney, Melbourne, Brisbane, Perth or Adelaide.  We recommend two major organisations providing professional qualifications are:

  • Certified Public Accountants (CPA) Australia.  Visit their website here.
  • Chartered Accountants (CA) Australia.  Look at their site here.
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