If your tax accountant is an afterthought in the day to day running of your business, you’re doing yourself a disservice.
Build your relationship with this professional and they will start to deliver far better return on investment.
As we head through the first months of 2024, these are some ways you can get better value from your tax accountant (and that means better results for your business).
1. Be organised with your reports and receipts
While fewer business owners are keeping receipts in shoeboxes these days, it’s still possible to have your spending records in disarray.
As much as possible, spend money from one or two accounts that are connected to your accounting software. Keep receipts in a folder in your email, in your cloud-based files or on your phone and you’ll be able to share them with your tax accountant.
Have all business expenditure connected to company cards and your accountant will be far more efficient when it comes to reviewing your activities prior to tax time.
And if you’re not already using Xero or MYOB, talk to your tax accountant about how to integrate these platforms into your business (and save yourself a lot of time and stress).
2. Be proactive and catch up regularly
An annual pre tax return catch up will see you fulfilling your legal obligations, but you may end up paying too much tax because you haven’t reviewed how things are going throughout the year.
Don’t always wait for your tax accountant to come to you; schedule regular meetings, email them to ask questions and talk about your tax minimisation strategy.
The more time your accountant has to assess any issues, the more timely their advice can be and the more they can prevent issues from impacting your final tax bill.
3. Ask about industry benchmarks
By working with your accountant to uncover industry benchmarks, you can gain insights into your business’ performance within your industry’s landscape and find out if you’re sitting where you should (or could) be.
If you were bringing in 30 per cent less revenue than your competitors, wouldn’t you want to know? Once you have the information, you can make a plan to capitalise on your strengths and do something about it.
4. Stay informed about tax law changes
Tax laws change constantly and even small updates can have a big effect on your income.
An example is the way superannuation is taxed. Proposed new regulations will see people with more than $3 million in their super paying additional tax in the future.
Fringe Tax Benefits and reporting requirements can change as well. When you’re connected with your accountant, you can get a heads up about incoming regulations that may change the decisions you make about your business.
5. Invest in continuous education
Managing money is an unavoidable part of running a business, and even though professional support is essential, the more you know, the easier it will be to stay in control of cash flow and tax.
Your accountant is a resource; use them to keep in touch with tips and strategies for better financial management. The best thing about having a good relationship is that your accountant will have a clear understanding of your industry and your business; this means you’ll get personalised advice and help with a plan for the future.
You can look elsewhere as well; a podcast about business finance management and tax that you listen to when you’re in the car can keep you in a more financially motivated headspace.
Your tax accountant is here to help
You don’t call the dentist between visits but your relationship with your accountant should be different.
The best thing to do is ask! Reach out and find out what your tax accountant wants you to know so you can meet them halfway and get better results for your business.
Want more proactive tax management? Reach out to Mobbs & Company today.