Every year, thousands of businesses spend millions in taxation – and with so many cut-off points and excessive tax schemes in place, it’s not uncommon for companies to end up finding themselves forking out much more than they actually need to. With a lot of agencies attempting to keep their costs low by taking care of their own assessments and tax submissions, it should come as no surprise to learn that they can end up paying more than they would by hiring accountants to help them instead.
These financial experts may charge in return for their services; but as they may also be able to find ways to save a company money in ways that the business might never have imagined – the potential can certainly offset any additional expenses.
How can an accountant help with tax reduction?
By hiring a bookkeeper that specialises in business and corporate tax, a company could already be one step closer to reducing their yearly taxation by taking on an expert that will be able to identify and categorise their expenses. Some of these expenses can be reclaimed in the form of a rebate, while others may be entirely exempt from tax submission.
Things such as the cost of petrol for any employees, electricity and water bills within an office and even other minor activities such as the cost of stocking a company fridge may all be eligible for exemption. It’s these types of expenses that are commonly overlooked by businesses that simply want to take care of their tax data themselves – but the reality is that thousands a year could be saved if these costs are correctly categorised.
Are there other money-saving methods that an accountant could help with?
Most businesses will find the category of their expenses split into five or six definitions. There are profits, expenses, drawings, investments and others of a similar nature. Of this number, all outside of profits can be eligible for discounted taxation – and this is something that many business owners overlook.
By taking on the services of a bookkeeper, a business may find itself eligible to reclaim particular costs, or minimise their tax bill in general because of particular legislation that applies to their industry, or their practices. Without this type of information, the excess cash spent could take a company into additional thousands in tax each year – and unless this information is documented, it won’t be reclaimable come the issuance of rebates.
This is why hiring a financial advisor to act as an accounting specialist can be beneficial – and in the grand scheme of things, the decision could act to save anywhere from a few hundred dollars to tens of thousands as the years go by.