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Small business accountant in Melbourne: tax facts that you should know

Potentially the three-letter word that small business owner dislike: TAX. Dealing with taxes is a nightmare for many small businesses. Just by thinking of the amount of different taxes and regulations attached, it is tiring enough.

According to a study, it is found that over 80% of small businesses hire accountants and professionals to complete their tax return. 80% is a high number, as small business owners have too much on their plate, they increasingly realise the need of outsourcing.

Instead of using different firms to do payroll and tax return, you can be “cost-effective” by finding an accounting firm that does both and ask for a discount since you are bundling their services.

Outsourcing your taxes does not 100% mean it is none of your business. Your employees or even you have a role to play in record keeping and talking to your preparers. Tax is indeed a time consuming activity. According to statistics, small business owners spent at least 32 hours annually on taxes. The keyword here is “at least”.

Taxes are really a big deal because the related cost is up there, high. Other than outsourcing cost, there are also penalty costs. The probability of paying penalty costs increases when you rush, when you have insufficient tax and when you do it yourself. The complexity nature of taxes actually increases your risk to pay more if it is not handled properly.

‘Tax’ is probably to most dreadful word for small business owners but it is something inevitable and has a significant impact on your bottom line. Thus, do not wait till tax time and start panicking. Outsourcing might be a cost, but it is actually a gain.

For more useful tips and advice on how to grow your small business, contact us here at mas accountants, the original accountants for small business, servicing Sydney and Melbourne for over fifty years.

 
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