If you are running a business, you must be knowing that maintaining proper books of accounts is essential. Missing even once transaction entry could lead to troubles and thus one must maintain good accounting practices. Also, if your business is small then it is better to hire accounting services so that the business accounting gets managed professionally and you can focus your energies on business.
Let us have a look at the most common types of business accounting services that you might need for your business.
Types of Business Accounting Services
As a part of bookkeeping services, the books of accounts are maintained and updated regularly by accountants. The transactions are analyzed and then recorded in the accounting software on a daily basis. The most commonly used accounting software include Xero, MYOB, QuickBooks, and Receipt Bank. The accountants make sure that the accounting records remain updated and to achieve this they carry out a number of tasks as follows:
- Recording of accounting transactions
- Periodic reconciliation of books of accounts
- Preparing bank reconciliation statements
- Reconciliation and monitoring of accounts receivables and payables
- Payroll calculations and accounting
Bookkeeping services are the main part of business accounting services. While outsourcing these services you must ensure that the above services are covered by your accountants as a bare minimum. The importance of bookkeeping can be understood from the fact that any missing entry or deviation can invite penalties from the ATO.
Processing of payroll is a bit complicated and there are a lot of things that are to be taken care of when processing payroll such as attendance, leaves, taxes, and so on. If you are also struggling to get the payroll calculations done the right way, it is better to get the payroll services outsourced. The activities that are performed as a part of payroll services include the following:
- Preparation of payroll sheets after making accurate calculations.
- Processing of employee payroll periodically by way of Single Touch Payroll (STP).
- Validation and processing of employee claims.
- Ensuring the accuracy of Employee Super Guarantee calculations and the compliance with Pay As You Go (PAYG) tax along with its timely submission.
Payroll can be said to be one of the critical areas of accounting and thus, you must ensure that due care is taken in the process of payroll processing.
Tax Returns Lodgements
You are under an obligation to pay tax on the income earned by your business. It is important to make sure that tax returns are lodged with the ATO for each year without any delay so that you can avoid any unnecessary penalties. Also when you are lodging the tax returns for your business it is important to ensure that all the incomes, expenses, and deductions are disclosed accurately and in compliance with tax laws. Since tax laws are so complex to understand and change every now and then, it is a wise decision to hire professional services of accountants for tax returns lodgements.
The accountancy firms can help you effectively lodge your business tax returns within the prescribed time after analyzing the tax clauses applicable in your case. They ensure that the maximum deductions are claimed in accordance with laws to get the maximum tax refund if any. Also, if you have missed lodging business tax return for any year you can engage accountancy firms to help you with their lodgement and thereafter communicate with the ATO for request regarding penalty waivers.
Business Activity Statement (BAS)
You might be aware that in case your business is registered for GST then your business is required to lodge a statement named Business Activity Statement (BAS). This statement is to be lodged either monthly, quarterly, or annually based on the turnover of your business. The accountants can help you be ATO compliant by lodging the BAS within the timeline. Apart from this, the accountants can also guide you regarding the accuracy of GST charged by your business on the sales and the GST input.
These are some of the most common types of business accounting services that any business entity requires. Usually, small businesses prefer outsourcing these business accounting services so that they can get their accounting managed professionally and there are fewer chances of non-compliance.
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