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With the end of financial year now firmly behind us, this is a good time for business owners and managers to assess their financial performance over the past twelve months. Economic conditions are still difficult, more so in some industry sectors than others, so any opportunity to turn a magnifying glass onto the financials should be welcomed as a chance to learn from mistakes, and look for ways to improve. The best ally any business can have in this process is a savvy accountant and even if the organisation employs someone in-house, having a second pair of eyes from outside the company will always bring benefits. An internal accountant will be expert in the financial management systems of the business, and be an excellent resource for the accountants Brisbane at audit time. The external accountant will audit the systems, look for errors or anomalies, do an audit report as required by the structure of the business, and prepare the relevant tax returns. Since no-one wants to pay more tax than is required for compliance, this is an area where immediate savings can be gained that may minimise tax and maximise profits. In reviewing the performance of the past financial year, look for areas where some minor adjustments in operational processes could help reduce tax for the next financial year. One of the easiest methods is to identify any items that could be prepaid to reduce taxable income. Interest on an investment loan could be prepaid twelve months in advance, as could the purchase of some inventory or consumable items. Having the right accountant to assist with this process will pay dividends next year. The actual structure of your business could be another area where some expert assistance from an experienced business accountant could have a positive outcome on your next year’s results. If, for example, you started as a sole trader but your business has expanded rapidly, you may be at the point where this simple structure no longer serves your growing organisation. It may be time to form a company or a trust to get the best advantage from the tax laws, and for this type of restructuring advice, the knowledge and experience of a good accountant is essential. There are many accounting firms around who provide these services, but it is important to get referrals and testimonials to make sure you are placing your business in the right hands. With the right advice now that can be implemented before the end of this financial year, you could be looking at a very different set of figures this time next year. More profit and less tax is a great result all round! http://www.charterpartners.com.au/
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