Knowing the questions you are going to ask your tax accountant beforehand will help you a lot. Not only will you save your and your accountant’s time, but you will also save yourself from missing out on important information. You will be well-prepared and well-informed, which can help you reach your financial goals effortlessly.
So, to help you, we have prepared a set of questions you must ask your tax accountant. You should also ask these questions to your current accountant, even if you have been working with them for years. Doing so lets you clarify your business aspirations to your tax accountant.
1. Tell Me About My Tax Obligation.
The first question you should ask your tax accountant is regarding your tax obligations. Depending upon your business type, your obligations regarding tax will differ. As a sole trader, you will be taxed at individual income tax rates.
However, the regulations change if you have a company to run your business. You have to keep account of too many types of taxes, such as income tax, fringe benefits tax, capital gain tax, goods and services tax, payroll tax, and the list goes on.
Thus, you must ask your tax accountant to know better about your responsibilities.
2. What Business Expenses Can Be Deducted?
If you wish to lower your tax bill, deductions are your friend. Although deductions are extremely popular, there are a couple of them that not many businesses know of. Rather than letting go of the opportunity to reduce your bill, look for good tax accountants who can help you claim every deduction your business qualifies for.
It would be best to discuss the receipts for the expenses. For most of the expenses, you will need receipts as evidence. However, if you do not have those, ask your accountant for help.
3. What Records Do I Have to Keep?
Tax accountants know better about the records needed during tax time than anybody else. As a small business owner, you should keep all the necessary records. These may include:
- Statement of your bank
- Copies of sales invoices
- Company constitutions
- Trust deeds
- Copies of receipts for purchases
- Annual financial reports
- And many more.
The records also vary depending on the business structure you have chosen. You may also need a lawyer to gather a couple of legal documents. Good tax accountants, like Clear Tax Accountants in Melbourne, will inform you about these records in detail.
4. What New Laws Have Been Introduced and How Do They Affect My Business?
The ATO takes serious action against businesses that do not follow the tax laws. As a business, you must follow all the ATO’s guidelines. From time to time, some new laws or changes are introduced. Ask your tax accountant about these.
5. How To Check If My Small Business Is Doing Fine?
It is the question you should ask even if you feel your business is doing good. Tax accountants will give accurate data by interpreting the financial statements. The statements include a profit and loss statement, cash flow statement and balance sheet.
The above questions will make your next meeting with your tax accountant informative to you. If you are searching for a good tax accountant in Melbourne, you can contact Clear Tax Accountants. With us, you don’t have to worry about taxes at all, which gives you plenty of time to focus on your business.
Disclaimer: The information on this website is for general purposes only and should not be relied upon for making legal or other decisions. The advice provided in this article is general in nature and is not subject to the personal financial situation and needs of any individual. Clear Tax tries to keep the information accurate and up-to-date; however, you should bear in mind with changing circumstances, the accuracy and reliability of the information will not necessarily remain the same. The information is by no means a substitute for financial advice.