Tax is something all of us dread but it is a reality of life that we need to confront better sooner than later. Despite ATO’s best efforts to remind small businesses about filing of taxes on time, many still tend to scramble on the last minute with their Melbourne accountant.
This is of course a huge risks as it does not only invite possible penalties, it can also result to higher fees by your Melbourne accountant as well as increased risks of inaccuracies. So what are the main benefits of filing taxes on time? Aside from avoiding potential penalties, you can also sidestep any cash flow issues as well as increase opportunities for potential tax refunds.
Working with a Melbourne accountant on a regular basis and not just during tax time will make it possible to file the tax return before the filing deadline. This will help you receive any tax refund after it has been submitted. Hence, if there has been an overpayment made, you can expect the refund sooner.
When filing your tax return on time, your Melbourne accountant will be able to calculate ahead of time the tax liability, which means you have ample time to start budgeting for your taxes and managing your cash flow better. Lodging taxes late will of course incur late payment penalties and can badly affect your cash flow especially if you have not allocated cash for it.
A lot of businesses do not see the advantage of working with a Melbourne accountant for proper tax planning. But it should actually start at the conception of business in order to determine the best possible options and business structure ideal for your company, which will result to lower tax liabilities.