When running a small business, it can be easy to misplace documents and leave your self-assessment tax return to the very last second. Typically, this wouldn't cause many problems. However, the Australian tax authorities occasionally carry out audits on a random selection of tax returns. If you receive notification that your accounts are going to be audited by a tax inspection, it is likely that you worry about what they might find.
Whether you're a freelancer or the owner of a small company, you have to keep track of a lot of numbers. At the beginning, it may work to track financial details in a spreadsheet or even just on a sheet of paper, but eventually, you may need to upgrade to accounting software. Wondering what features it needs? Ideally, the accounting software you select should have the following abilities. 1. Scalability
The time of year when tax returns are due is a time that many people dread. After all, it's not the most enjoyable activity, and it's never nice to be reminded of the tax you have to pay. Nevertheless, it's an important task to get done as soon as you can, as lodging it too late or failing to do it at all can land you with a big fine.
Over 50% of new businesses fail within their first three years of trading, and one of the reasons for this is because the person running the company is not ready for the daily responsibility of keeping the business booming. You have just started up a small business of your own, but you are trying to do everything yourself, so you don't have to pay professional fees for accounting or legal services.
As technology pervades all aspects of business, outsourcing has become one of the top ways for businesses to get work done without having specialised staff on salary. The rise of freelancing and the online community provides business owners with a wide assortment of skill sets to choose from depending on what their immediate needs are. Since all companies need bookkeeping operations, it is no surprise that you can easily get professionals to perform these tasks for you rather than having to hire a permanent accountant.