Well, it’s that time of the year when you turn to your accountant for the annual check-in.
Business owners will make the once a year pilgrimage to their accounts and ceremoniously handover all of their receipts, expenses and income statements so that we all do our ‘bit’ to keep the ATO happy.
And in the eyes of many small businesses, this once a year visit to their accountant makes perfect sense. Afterall, seeing your accountant is pretty much all about tax time or possibly only if there is something really big or important that needs their input – right?
Any accountant who truly values the business well-being of their clients knows that regular meet ups and business health-check sessions are equally, if not more valuable, than merely having your books prepared for a tax submission.
So, when a business owner makes the once/year visit to their accountant, they invariably come with two objectives in mind;
Prepare my tax return
Make sure I pay the least amount of tax – or preferably, none at all!
The second objective is a problem in itself.
To put it simply, if you lead with the objective of simply wanting to pay the least amount of tax (or none at all), then chances are you’ll be missing the larger picture.
Here’s the thing – paying tax is not necessarily a bad thing – for one, it means your business MADE money, it made a profit – which means it is successful.
The other key issue is that if your focus is simply on saving tax, then you’ll have a very narrow and limited outlook on continued growth for your business.
While I’ve previously written about ‘wanting to save on paying tax’, it’s worth repeating some of the main points of that blog.
First, while many of us complain about having to pay any tax whatsoever, remember that our tax dollars do contribute to our society as a large, for example;
Social security, welfare and pensions – helping the aged, unemployed and people with disabilities
Health – Medicare
Transport and Communications
Housing & Community amenities
Public order and Safety – essential services (police, ambulance, fire fighters, SES)
Now we’re not suggesting that a business should not actively look for ways to legitimately minimise the amount of tax they have to pay.
Rather, business owners need to first and foremost look at;
how their business is running
how be more engaged with the numbers
how to understand the implications of their finances and,
how to start working ON their business instead of IN their business
Why should a business focus on these areas? So as not to miss any opportunities that they may come across and to address any risks/issues in a timely manner that may negatively affect their business.
This is the bigger picture I spoke of earlier.
Remember, a good accountant will always work with you to help with strategic thinking and to provide you with the knowledge and support that’s needed in order to make sound business decisions.
And yes, a good accountant will also work with you to help minimise the amount of tax you have to pay.
A good accountant is your all-round business partner.
Aperture Accounting, 1300 273 788