Australia’s income tax system works on the self-assessment principle, which means the information that businesses provide regarding income and deductions is accepted by the ATO as accurate. Businesses must lodge a tax return for any year in which they do business. Deductions may be claimed for any costs incurred for the operation of a business if they are not of a private or domestic nature. Furthermore, most money that is received during the operating of the business is an assessable income.
Hiring an accountant in Parramatta can help businesses with any financial challenges if they get too great to handle by themselves. Firms such as Advanced Accounts have experienced accountants and bookkeepers that can help with their tax returns, payroll tax payments, and so forth. Choosing the right accountant is crucial since he or she would be in charge of the company’s books, records, and other information.
The R&D activities of a company are typically led by special centres or units, though they can be outsourced to contract research organizations. An R&D expenditure will most likely hit the Company Tax Return as deductible expenditure and it’s important to make sure that there are no double reductions when the numbers are given again in the Company Tax Return through the R&D Tax Schedule.
While R&D expenses are relatively minor, they can rise to rather hefty sums for larger companies. For technological, pharmaceutical, healthcare, and industrial firms, R&D expenses are the highest. For companies who are in need of accounting for their R&D tax and expenses, there are experienced accountants in Parramatta such as Advanced Accounts who offer advanced levels of accounting and bookkeeping services, which can greatly aid companies with their financing issues.
Accounting is more than just recording data and calling it a day. When done correctly, experienced Parramatta accountants such as those from Advanced Accounts can help business owners stay on top of their debts, pay their employees proper salaries, guide growth, and manage funds efficiently. In addition, these experts can assist entrepreneurs in making their businesses truly cash-producing ventures.
With such crucial factors hinging on the effective management of business accounts, professional accountants in Parramatta are truly invaluable members of any business owner’s team. More than just keeping records straight, working with the right accountant will give entrepreneurs a wealth of information and concrete advice to steer their businesses in the right direction.
As a major business district in the Sydney metropolitan area, it’s no surprise that many of the enterprises that call Parramatta home are in a constant struggle to stay afloat and keep their competitive edge sharp. While many small businesses fail to take on a solid game plan that will protect their cash flow stream, know that hiring reliable Parramatta accountants can help secure your business from major cash flow problems.
The Business Budget
Along with so many other services, accounting firms like Advanced Accounts can help you create a reliable monthly and annual budget so you can have a nice bird’s eye-view of future expenditures you’ll need to prepare for. With this, you can identify how much money you’ll need to pay off recurring debt and troubleshoot your cash flow (by keeping it in the positive) before you end up drowning in debt.
Keeping track of such trends, as well as changes to the ATO’s tax rules, is best left in the hands of a reliable accounting firm that provides businesses of all stripes with experienced, professional accountants in Parramatta—such as like Advanced Accounts, for instance.
The ATO’s proposed tax treatment on crypto-currencies deserves a closer look. According to the ATO, income tax or GST implications don’t apply to bitcoins used to pay for private transactions unless the cost of the bitcoins exceeds $10,000. In addition, the ATO allows entrepreneurs to use bitcoins to pay their workers’ wages—provided a valid salary sacrifice arrangement was made. However, such a payment will be considered a ‘fringe benefit’, which means that provisions from the Fringe Benefits Tax Assessment Act will still apply.
In the end, the AAT still gave the carpenter a 50 percent administrative penalty based on the aforementioned shortfall amount. This case clearly demonstrates the value of hiring experienced Parramatta accountants from a firm like Advanced Accounts instead of relying upon one’s “knowledge” of the ATO’s tax rules. After all, businesses can’t just claim GST credits on any product indiscriminately as the rule does not apply to input-taxed items like bank fees and certain goods like basic food items.
Some small businesses also make the mistake of claiming GST credits even if they could not present a valid tax invoice.
“Dealing with government regulations is part of doing business, and many large companies have departments specifically created to guarantee that they are complying with the rules that affect their operations. However, local businesses that don’t have the ability to run a department that handles these regulations can turn to professional Parramatta accountants, who can help them abide with existing laws, rulings, and standards.
In the case of the recent wage hike, trusted accountants in Parramatta, such as those affiliated with Advanced Accounts, can help many local businesses fully understand the intricacies of the regulator’s decision. Accountants can go through the available legal documents and draw out the appropriate wage computations that would conform to established regulations. They’ll even advise their clients on the tax implications of these changes.”