Bookkeeping, Accounting & Tax Compliance
Running a business means keeping track of your spending, paying your tax and a variety of other intricate tasks. When first establishing a business, it is important to decide whether you will commit to taking on these tasks or to put them in the hands of a trusted professional.
The kinds of tasks we’re talking about are keep records, sorting out the payroll, reconciling bank accounts and managing the accounts payable and receivable.
What’s the difference between Bookkeeping and Accounting?
Bookkeeping is a primary portion of accounting. It comprises of the gathering, organising and recording the financial details of a legal entity. This contributes to the daily operations of a successful business and requires the bookkeeper to draft financial statements, tax returns and keep record of the internal financial movements of the business.
Accounting is the umbrella term responsible for the overall establishment of financial controls to ensure that the business has a smooth system of operation. Additionally, accounting also involves financial reporting and measuring the performance of the entity itself based on this information. Accounts are also responsible for generating reports based on this information in the form of financial statements, tax returns and other documents. This is where the roles of bookkeepers and accountants intersect; bookkeepers provide the daily reported information and accounts assess this information and transform it into a yearly summary.
Tax compliance and regulation can be as dry as it sounds. It can also be time consuming and complex.
As a functioning business, it is essential to receive advice on all tax and superannuation matters. This ensures that you are lodging your business tax returns correctly, on time and with the expectation of a good return. The complicated nature of our taxation systems means that businesses must remain updated on new applicable laws. When running a business, tax considerations can often be the last thing on the to-do list and by enlisting a tax professional; you’ll stay up to date and compliant.
Bookkeeping, accounting and tax compliance are all inextricably linked to ensure that businesses are operating effectively and in line with legal regulations. The intricacies of each skill are well known to professional advisors who will provide accurate information and services for your individual or business needs.