Starting a business is never easy. After all, it takes a whole lot of dedication to bring it to scale. The initial stage of a business may be handled by a single person, but what happens when the business is planning for an expansion due to its newfound success? There would be many things to consider, such as the: human resource department, financial accounting, logistics, IT equipment, etc. An expansion without proper planning can be a failure, especially if the sudden influx of clients overwhelms the existing infrastructure.
Proper documentation and record keeping
In the case of bookkeeping, it is always essential to keep proper records and documents of all financial transactions. This could refer to a minor thing such as receipts provided by the employees for the purpose of claiming it as a company’s expense, or a major thing like an official invoice issued for the purchase of goods. Proper bookkeeping also ensures that the flow of funds is closely monitored, and that the profits and losses would be accurately tabulated, determining whether the company is in the red or not.
In recent times, outsourcing a branch of the company’s operations has been a common thing, as this may reduce the company’s need to train manpower for the job. In some cases, the cost of outsourcing would actually be lesser than setting up an actual branch. Companies like Watson & Watt Brisbane Accountants provide accountants who are specialists in their field, saving you the need to hire an accountant. This specialised service frees up essential time for you to focus on other aspects of the business (like expansion).
Minimising tax payments
To the common layman, the financial jargon laid out within the regulations by the authorities can be confusing and cumbersome. You may have adhered to the regulations and submitted all the relevant documents, but do you know that there are further ways to reduce your tax payments legally? For example, some income (like inheritance, gifts, etc.) are not taxable and if you declare them, you are actually paying more than it is worth. An experienced accountant will be able to offer you advice on the appropriate declarations, saving you the money in the long run.
What happens if there is a wrongful declaration?
Declaring the wrong information to the authorities can be a sticky issue to begin with. If caught, the possibilities are many: having your permit or license suspended, slapped with a hefty fine and/or jail term, banned from operating for a period of time, or even being blacklisted. Do not try to save that bit of money hiring an accountant just for the sake of reducing your expenses. You might end up paying more in the end if you are not well-versed in this area.
A well-versed accountant does not just engage in filing taxes and financial statements only. They should also be able to plan a path for the business’s finances, offer their advice on financial matters, and even provide secretarial services for those who require it.