If you’re a tradie that’s been DIY-ing your own finances and tax returns, it might be time to rethink your situation. Hiring an accountant not only saves you a lot of headache, it also offers other potential benefits to you and your entire business. Here are five reasons it pays to get a professional to do the number-crunching for you.
1. Maximise your tax refund
Submitting your tax return can be a complex and frustrating business. So, why do it yourself? An accountant can prepare your tax return, financial reports, and all necessary paperwork to go with it. Time to breathe a sigh of relief! Even better, an accountant will ensure you get the best possible tax refund. That’s because they know exactly what you can claim as a tradie. You might be surprised! They also prevent you from over-claiming, which could result in fines or, in more serious cases, tax audits.
2. Stay compliant
As well as maximising your refund, an accountant will also ensure your return and paperwork practices are compliant. If your trades business is growing, for example, you might not be aware that you’ve crossed over into a new tax bracket. An accountant will keep you informed and let you know about the relevant implications. They also make it their business to know when laws change, keeping you in the loop for any that affect you and your industry directly.
3. Understand the figures
If you don’t have a mind for figures, keeping an eye on the ones that matter to your business can get confusing. However, accountants can easily untangle them for you. As well as explaining what’s what, they can also explain what you should focus on – for example, cash flow, gross and net profit, or debtor and creditor days.
4. Future-proof your business
Accountants can also act as your strategic advisors to help your business grow. Managing your books offers them unique insights into your business. This will allow them to dissect cash flow patterns, create financial forecasts to help you make better decisions, and determine areas for growth. Practically, they can advise on how to cuts costs, improve your debt collection processes, and create a budget to support your business goals.
5. Free up time
Doing your financial admin can take time that you probably don’t have when the job book is bursting. By taking on this aspect of your business, an accountant will free up time you can then spend on the job – or even with your family.