When starting your own business, the business owners have a lot on their plate as they have to handle all the different duties to run their business. They also operate on a limited budget and have to take into account all the cost and expenses to optimize the resources.
Among all the different jobs which a business owner does, accounting or bookkeeping is the least favorite. They always try to keep it for the last and in the end struggle with the books. This is one job which shouldn’t be done on your own and must be given top most priority. Having a small business does not mean that Accounting Services have to be taken lightly. By neglecting them it costs a lot to the owner i.e. you underestimate the tax bill and get in trouble with the government, the books end up with mistakes, tax returns are filed late which results into fines, don’t have reliable information for proper business decisions etc.
The do-it-yourself attitude should change as far as hiring an Accountant/Professional is concerned. It is not an expanse but an investment for the business. An accountant will help with the taxation services, identifies savings, and helps in growing the business. They will clean up your records and back them with proper documentation, do away with any data entry errors, update the out of date books, take care of the tax breaks. To state in short, they will get the house in order. An accountant will also help in setting up of software that makes it faster and easier to record future income and expenses.
To avoid getting into trouble with the government, it is important to do your tax really well and on time. There are lot of ATO rules and regulations which a new business owner or even an existing business might not be aware. Taxation services shouldn’t be taken lightly, late filing or payment of taxes results in penalties and interest. When you hire an accountant, you don’t miss any deadlines. They will work well in advance so that tax filing is smooth and stress-free and those tense days of tax season will be gone.
With the arrival of the New Year the Australian tax department (ATO) has taken into notice the concerns of the small business owners, the industry professionals and has reduced the amount of GST information required for the business activity statement (BAS) to make the bookkeeping and reporting easier. These will help the businesses easily clarify transactions and prepare the lodge their BAS.
It has therefore announced that, from January 19, 2017, newly registered small businesses will be provided with the option to report less GST information on a simpler BAS. To take advantage of this option, small business clients that register for GST from January 19 will need to do the following:
- If a quarterly GST reporting cycle is selected when registering for GST, they will need to select “Option 2: Calculate GST quarterly and report annually” on their first BAS. The ATO says it will not be seeking the additional GST information or lodgment of the “annual GST information report”. This will provide your small business client with a simpler BAS reporting solution.
- If a monthly GST reporting cycle is selected at registration, you can insert “0” at G2, G3, G10 and G11 on your client’s BAS.
- If an annual GST reporting cycle is selected, you can leave G2, G3, G10 and G11 blank on your client’s annual GST return.
Note also that from July 1, 2017 small businesses will only need to report the following GST information on their BAS:
- GST on sales (1A)
- GST on purchases (1B)
- Total sales (G1).
The requirement to report export sales (G2), other GST free sales (G3), capital purchases (G10) and non-capital purchases (G11) will also be removed.
So if you are starting a small business and or are an existing small business owner and need help/ advise for GST, BAS or any other accountancy related matters, you should look for Accountants in Melbourne. There is lot of qualified professionals/experts in Melbourne who would guide you properly on all these matters for a very reasonable fee. As said before hiring a professional accountant is an investment and not an expanse. It will give good returns to your business.