Are you making the most of your business tax deductions every year, or are you paying more tax than you should? If you don’t have a financial background, you might not fully grasp how tax is affecting your business; it’s a common small business tax mistake. Fortunately, you can appoint a professional accountant to help you prepare for tax season and handle your financial tasks efficiently. With the right accountant by your side, your business will never miss another deduction.
With numerous firms to choose from, it can be challenging to decide. These are the qualities to look for:
1. Organization Skills Essential for a Virtual Business Accountant
A virtual accountant should maintain accurate and organized financial records. They must have a system to track receipts, invoices, and other important documents. This organization ensures that records are easy to understand and access, facilitating compliance with tax deadlines and minimizing the risk of costly errors. An organized accountant also ensures that your tax returns are lodged on time, preventing potential non-compliance penalties.
While a good accountant excels with numbers, effective communication is equally important. The best consultant can explain complex financial information clearly and concisely, especially to clients without a financial background. When considering potential firms, assess their communication skills during the initial meeting.
3. Strong Ethical Standards
Your business accountant will have access to sensitive financial information. Appointing an firm with strong ethical standards is crucial to maintaining confidentiality and compliance. Ensure they use secure software programs for tax planning and business accounting.
4. Accounting Software Expertise
Today it is a must to find a firm with expertise in accounting software like Xero. This expertise enables them to use systems to manage expenses, prepare taxes, create invoices, and handle payroll, saving time and ensuring compliance with tax requirements and regulations.
5. Data Analysis
Your accountant should be proficient in collecting and analysing financial data. Data analysis helps your business make informed, data-backed decisions that promote growth. An accountant with strong data analysis skills can identify and report necessary changes to improve your business financially.
6. Flexibility and Adaptability
A business accountant should have a firm grasp of accounting principles and regulations. Experience in your industry is also essential, as it helps them identify unique financial metrics relevant to your company. Given that regulations and industries constantly change, the best accountants remain flexible, adaptive, and skilled problem solvers to navigate these changes effectively.
7. Time Management
Effective time management is crucial for accountants to meet important deadlines, especially when working on multiple projects concurrently. A financial automation solution can assist in timely processes while reducing manual errors. Proficiency in spreadsheets is also essential, as they are industry-standard tools.
8. Ability to Prepare Financial Statements
Preparing financial statements, including income statements (profit and loss), cash flow statements (movement of cash assets), and balance sheets, is a fundamental role of your accountant. These documents provide insight into your business’s financial health, aiding in assessing assets, equity, and liabilities.
9. Continual Learning
The accounting field experiences regular changes in tax laws, software, and regulations. A great accountant remains proactive by staying updated on these changes. Look for a firm registered as Chartered Accountants (CA) or Certified Practicing Accountants (CPA) to ensure their professional competence. In Australia, CPD activities are mandatory to maintain these certifications.
Appointing a Business Accountant
When you appoint the right accountant, you can confidently navigate your business’s financial journey. At Accountants 2 Business, our personalised virtual accounting services can help you prepare for tax season and ensure efficient, hassle-free tax lodgement. With two decades of experience, we’ve assisted family-owned businesses across Australia in complying with tax laws and regulations, central office located in Capalaba, Queensland. It’s time to get your business accounting on track. Book a free meeting with one of our expert consultants to learn about our personalized virtual accounting services.