It is essential to understand that there are two kinds of accountants, so remember this when choosing one for your small business. You’ll notice those that concentrate on tax and bookkeeping and others that target the business advisory.
For you to pick the right accountant for your small business, you must know the different characteristics of each one as well as their strong key points. We have outlined some of these characteristics here.
Accountants Specializing In Tax and Book keeping
The vast majority of accountants are employed in tax and compliance. Their work descriptions specialize in maintaining finance records, Business Activity Statements, preparing tax returns with your local tax office as well as fulfilling any other tax duties. They are also in charge of preparing yearly financial statements.
Tax and bookkeeping accountants are usually involved with tax planning, which is determining ways to legally reduce the amount of tax that clients pay out. Increasingly, they’re also involved with pension funds (SMSF – Self-Managed Superannuation Funds), helping clients with their own private pension fund.
Most will help clients with bookkeeping and record keeping, so that the accountant can prepare their monetary statements, balance sheets, revenue and loss statements, and income tax returns. Some accountants may also help clients with small business software applications like MYOB, Xero etc.
Business Advisory Accountants
Business advisory accountants focus more on the review and appraisal of the small business functionality and look for ways to enhance it.
They work with their clients to prepare budgets and cash flow estimates. They also perform management accounting, which uses monthly and weekly data to analyze financial results and understand why a business did not perform as anticipated. Based on the results, the accountant will then help the client prepare loan proposals and cash flow outcomes for these findings.
Sometimes, a client might need the aid of the business accountant for business appraisals to help get it ready for a sale. Many are employed in the specific areas of property and succession organizing, which is progressively important as our population ages.
Points To Consider When Deciding On A Tax Accountant
Planning a monetary outline and informing you of the risk of a monetary investment to your business should be a quality to look for in a tax return specialist. They need to be equipped to help you organize cash flow and predictions for your small business. It’ll be beneficial in identifying your business goals.
Whichever accountant you ultimately choose, it is crucial that you can speak freely and openly with them. It rewards the both of you in the future when business ideas are exchanged in a free manner.
At W Advisory, our company has experienced Chartered Accountants who are able to help with your company needs on tax accountant solutions, tax return and bookkeeping services. We have reps in Sydney and Perth.