Many business owners feel uncertain about when to engage with their accountant – and how often they should do so! Should they reach out when they’ve a question – or check in every quarter?
Rather than giving their accountant a call, some entrepreneurs attempt to tackle their accounting responsibilities without assistance in an effort to save resources. Whilst this may appear sensible, such an approach to managing tax responsibilities can be an expensive decision in the long term. Aligning your calendar with that of your accountant can prepare you financially for impending due dates – ultimately saving you money, time and effort. In this month’s Wilson Pateras’ blog Swinly Perera talks you through the ‘whys and hows’ of keeping up with your accountant.
Whilst many business owners view managing their tax obligations as an annual event, the Wilson Pateras team prefer to keep dialogue open with their clients year-round. “It’s so important that clients engage with us on a quarterly basis at minimum,” says Swinly. “This can be as simple as making a phone call.”
An excellent time for business owners to get in touch with their trusted accountant is when their quarterly BAS reporting is due. Some business owners feel they can tackle BAS responsibilities independently – but it can be beneficial to discuss your reporting in greater depth. Has anything changed in your business in the past quarter? Has revenue increased, or taken a temporary fall? What about investments in your business, or staffing changes? Failing to amend BAS statements accurately result in businesses across Australia falling behind on their obligations, resulting in skewed reporting over the financial year.
The most important part of any business is cash flow – and by checking in with their accountant quarterly, business owners can plan for any changes in their obligations. If a business is having trouble paying their debts – a scenario which isn’t uncommon from time to time – an accountant is best positioned to assist working through the process, minimizing stress for business owners. Wilson Pateras ably assist our clients to negotiate payment plans with the ATO, helping entrepreneurs to meet their obligations year-round.
Tax Planning Season
Tax planning season usually takes place from April to June – and it’s a time when your accountant will spend time poring over the last nine months of your business results. Accountants and business owners ideally get together and discuss the year that’s been, in addition to the business owner’s expectations from the last quarter of the financial year. Based on this feedback, your accountant will then develop a plan that puts you in the best possible financial position. “Perhaps a business has been offered a large contract and their income will shortly double. How will they deal with their new tax obligations?” asks Swinly. “It pays to sit down with your accountant in April, May and June to strategize the management of your tax obligations. If your income has increased or decreased in the last financial year, your tax bill will be affected. Start planning around tax in the last quarter of the financial year – make sure you don’t go it alone,” she says. Additionally, the Federal Budget is released during this period of time – so it’s a great time to ensure your business aligns with any new financial edicts. Rest assured, Wilson Pateras will incorporate any budgetary changes into tax planning for your business, maximizing your wealth.
Reach out to the Wilson Pateras team and align your tax calendar today. By being in regular communication with your accountant, you’ll enjoy an enhanced sense of confidence in your business borne of understanding your financial position. Regular conversation with an accountant you trust will ensure your business can manage its responsibilities come rain, hail or shine.