Profit is what's left after tax. Managing tax well means your business keeps what it is entitled to keep: lodging correctly and on time, and claiming the deductions and concessions your business qualifies for.
You can only do so much yourself. If you want to focus on growing the business, handing the accounting and tax work to professionals makes sense. Many owners feel they should do the paperwork, bank records and transactions themselves, but the time it costs is too high. An accountant you pay as you go is often the safest, most accurate and most cost-effective option.
A plan for your tax
1. Use an experienced tax accountant
If tax is your main headache, choose an accountant with plenty of tax experience who will explain their thinking to you.
2. Hand over the whole job
Give your accountant all your records, not just some. Tasks left behind pile up and slow the business down.
3. Choose the right fit
Agree the fee before you start and ask plenty of questions. Make sure your accountant understands your industry and that you can work well together. Check that they are a registered tax agent on the Tax Practitioners Board register at tpb.gov.au.
Talk to your accountant about how to manage your business's tax this year.