Accounting

Business Tips, Ideas & Support Articles

Accounting

7 Reasons You Need A Budget For The New Financial Year

The dawn of a new financial year presents an opportune moment to reassess and refine your financial strategies. As the new financial year approaches, the importance of having a well-structured budget cannot be overstated. Recent studies have shown that Australians under 30 are leading the way in financial discipline, with many saving more than $450 each month by cutting back on non-essential expenses. This trend highlights the growing awareness among younger generations about the necessity of prudent money management. Whether you’re a business owner or an individual, a comprehensive budget can be a powerful tool to navigate the ever-changing economic landscape, mitigate risks, and unlock new opportunities for growth and prosperity. In this article, we’ll explore seven compelling reasons why you need a budget for the upcoming financial year, providing actionable insights for entrepreneurs and personal finance enthusiasts. 1. Manage Rising Costs of Living and Inflation Managing rising living costs and inflation is a crucial reason for maintaining a budget in Australia’s current economic climate. As of early 2024, Australia has been experiencing fluctuating inflation rates, with the Consumer Price Index (CPI) increasing by 1.0% in the first quarter and annual inflation registering at 3.6%. This reflects ongoing price rises in key sectors such as rents, education, and medical services, which significantly impact household budgets. The Reserve Bank of Australia (RBA) has responded to these inflationary pressures with a series of interest rate hikes, aiming to temper inflation and stabilise the economy. As of February 2024, the cash rate stands at 4.35%, with the RBA signaling that further increases may be necessary depending on economic data and risk assessments. These economic conditions underscore the importance of budgeting to effectively navigate rising living costs. By preparing a detailed budget, households and businesses can better manage their finances, prioritise essential expenditures, and adjust savings strategies to accommodate increased costs due to inflation and higher interest rates. 2. Plan for Tax Obligations and Changes Planning for tax obligations and changes is an essential reason for both people and businesses to budget, especially with the new tax adjustments scheduled for the 2024 financial year in Australia. From July 1, 2024, significant tax changes will take effect, impacting a wide range of incomes. The government has legislated reductions in the tax rates and adjustments to thresholds, which will see the 19% tax rate lowered to 16% and the 32.5% rate reduced to 30%. Additionally, the threshold for the 37% tax rate will increase from $120,000 to $135,000, and for the 45% rate from $180,000 to $190,000. These changes are designed to alleviate some of the financial pressures on taxpayers and can significantly affect personal and business finances. For businesses, understanding these changes is crucial for accurate financial forecasting and budgeting. It allows businesses to plan for potential changes in disposable income and strategise around investment or expansion plans. Furthermore, for individuals, adjusting to these tax rate changes by updating budget sheets and financial plans can help maximise take-home pay and efficiently manage increased cash flows. 3. Achieve Financial Goals One of the most important reasons to maintain a budget is to achieve financial goals such as saving for the future, making wise investments, and efficiently managing debt repayment. Each component plays a pivotal role in securing financial stability. Saving A budget helps to set precise saving goals and track progress towards them. This structured approach not only helps in earmarking funds for future needs—such as retirement or education—but also in building an emergency fund to cover unexpected expenses. The key is to treat saving as a regular expense in your budget to ensure you consistently set money aside. Investing Investing is another crucial area where budgeting is vital. It allows you to allocate funds for investments systematically, without compromising your financial health. A budget helps you understand how much you can safely invest and assists in aligning your investment choices with your long-term financial objectives. Regular reviews of your budget ensure that your investment strategies stay on track and adjustments are made as financial situations evolve. 4. Break Free From Debt Breaking free from debt is crucial, especially given recent statistics highlighting rising debt levels among Australians. Household debt has increased by 7.3% in the 2021-22 period, reflecting growing financial pressures on families. This situation underscores the need for effective budgeting to manage and reduce these financial burdens. In the business sector, there’s a significant uptick in corporate insolvencies, with appointments more than doubling over the past year. This increase is linked to challenging economic conditions, includinghigh interest rates and ongoing impacts from past global events, which have squeezed cash flows and heightened financial stress. These factors make budgeting an essential tool for businesses to proactively manage debt and prevent insolvency. For both personal and business finances, a disciplined budgeting process is key. It allows for better management of spending, allocation of resources, and development of realistic debt repayment strategies, facilitating improved financial stability and freedom from debt. 5. Improve Cash Flow Management for Businesses Improving cash flow management is crucial for Australian businesses to maintain healthy finances and plan for expenses effectively. Managing cash flow well allows businesses to meet financial obligations, like paying employees and purchasing supplies, without the stress of financial constraints. This is especially important as it enables businesses to pursue growth opportunities, such as expanding into new markets or upgrading equipment, without being hampered by cash shortages. Recent insights suggest that small businesses face particular challenges in cash flow management due to their limited financial buffers, which can lead to vulnerabilities when unexpected expenses or revenue dips occur . Effective cash flow management strategies include rigorous budgeting, streamlining expenses, speeding up receivables, and prudent use of credit. Each of these measures helps ensure that businesses can sustain operations and invest in growth by maintaining a stable and predictable cash flow. 6. Facilitate Retirement Planning Budgeting for retirement is crucial because it helps manage financial needs in the absence of regular income. The Australian Bureau of Statistics (ABS) indicates that

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Accounting

What Is Succession Planning and Why Is It Important?

There is a popular saying in the business community – if you fail to plan, you plan to fail. But, with your business at the peak of success and a promising financial future in full view, it can be difficult to take a minute to consider what would happen to your business if you left. A 2022 national survey shows that more than 1 in 4 Australian business leaders do not have a succession plan for top leadership positions. Yet leadership transitions are an inevitable part of business. You may not want to envision a future where you no longer run your company, but ignoring the possibility could harm your business’s resilience. Without a succession plan, you risk leaving your business rudderless and facing legacy loss, knowledge gaps, stalled strategies, and overall disruptions. A succession plan can help you bridge the gap between open roles and capable leaders. It allows you to nurture a new crop of leaders early on so that, when you do leave, they can maintain the momentum and workplace culture you have worked so hard to create. Therefore, in this guide, we answer a simple yet often ignored question: What is succession planning and why is it important? We review how a succession plan will benefit your business, what factors you should consider when creating one, and why you should put one in place as early as possible. First Things First, What Is Succession Planning? Succession planning is a business strategy that allows companies to transition key roles within the organisation. Businesses use succession plans to ensure a smooth transition when company leaders (and other key employees) retire, resign, die, or go on sabbatical. Within HR, succession plans act as training guides, allowing the company to identify skilled employees and train them to assume control of certain roles in the future. They help nurture the next generation of executives so there is never a knowledge gap when a leader transitions out of the business. Succession Planning for Small and Family Businesses We often think of family businesses when talking about succession – and with good reason. Succession planning for small and family-owned businesses can be more nuanced than for larger corporations. The board of directors often oversees succession planning in large companies, and the decisions made affect the employees, shareholders, owners, and other key players. In a small or family business, the decision often comes down to you, the business owner. It is easy to assume that the next generation should naturally take over your business in your absence. However, experts maintain that a good succession plan is based on preparation, not pre-selection. There is no telling whether your children or relatives possess the same leadership skills as you, and this is where training comes in. Rather than leave your succession plan to birth order and natural selection, you need to identify and nurture skills in the person (or people) you want to take over your business. This means even small and family businesses need a solid succession plan. So, What Happens If You Don’t Create a Succession Plan for Your Business?  Well, according to economic experts, you risk losing a lot of money. The Harvard Business Review estimates that the S&P 1500 loses about $1 trillion in market value yearly due to poorly executed C-suite and CEO transitions. While you may not record such astronomical financial losses yourself, by not formulating a succession plan, you risk: Losing Your Company Culture and Identity    You may have heard of new CEOs who come into a company with much pomp and colour only to flame out in a few months. They may even damage the organization’s standing with its clientele and partners, necessitating a lot of PR and image therapy. Usually, this happens when a CEO enters a company without a solid understanding of its culture, identity, and consumer base. Such a CEO would try to impose their core values – different from the company’s – onto the business, damaging the brand’s reputation. A good succession plan allows you to not only identify a viable successor for your business but also to “bring them up” within the company culture so they can uphold it in your absence. Destabilising Your Business Succession planning also protects your business from the destabilising nature of change. If the past few years have taught us anything, it is that the world could turn on its head at any moment. You could fall ill or get injured, a competitor could poach a key employee, and so on. Think of a succession plan as insurance against uncertainty. Just as you would cover your business against fire or burglary, succession planning offers it greater stability and resilience during leadership transitions, allowing it to retain market confidence. Your Employees Losing Morale    While most companies tout to be competitive workspaces, very few are. Without a clear promotion policy and succession plan, you risk demoralising your employees, who may feel there are no opportunities for growth and advancement within your business. A good succession plan can help you motivate and retain top talent. Stagnating Knowledge Exchange within Your Business It can also facilitate the nurturing of said talent. Once you identify the roles crucial to your company’s success, you can set up systems of information exchange so that there is always someone who can take the reins when a transition becomes necessary. Senior officials can identify competency gaps and initiate mentorships, coaching, and job shadowing programs to elevate the skillset within your organisation, covering all your bases. What Should You Consider When Formulating a Succession Plan?    Yet, despite the glaring benefits to your business, succession planning is no walk in the park. You need to do more than just pick your successor; you also need to set up systems to train employees to fill competency gaps within the company, set clear promotion policies, evaluate the impact of certain promotions on company morale and performance, and more. Some factors you should keep in mind as you envision your

Accounting

Protecting a Legacy: The Challenges of Passing on the Family Business

When it comes to mixing family and business, there are two schools of thought. Firstly, it’s a bad idea as it will affect your ability to make rational decisions and force you to not always put ‘what’s best for the business’ first. Secondly, with it becoming increasingly difficult to find staff, employing family members is a great idea as they will be loyal and also personally invested in the success of the business. Obviously, there are a range of variables that will affect your perspective on this (such as whether your family members have a strong work ethic) but family businesses, whether they’re corporate giants like News Corps’ Murdochs or your local grocery store, remain a reality for many and there are a number of important steps you can take to ensure your business runs smoothly now and in a future where you’re no longer the boss. Talk it over Non-family run business owners can be as ruthless (or kind and compassionate) as they please. Major business decisions needn’t be negotiated with staff (but can, and many would argue, should be) and these decisions are unlikely to become a topic of conversation at your next family gathering. Family business owners, however, must recognise that their decisions have repercussions beyond the 9-5 daily grind. These decisions will follow you home and that’s why it’s vital that you have open and honest conversations with your family employees about their role within the business, their expectations, their core competencies and, especially, their remuneration and equity within the business. As a general rule, we would advise that pay matches the role an employee is performing. If someone is working 10 hour days managing a complex logistics system, they deserve more than someone working seven hours a day at the checkout. When it come to equity, however, keeping this equal between all parties is often a safe approach to take. Establish rules and structure Where there are ambiguities, tension can arise. By establishing a hierarchy of business decision makers, clearly defining people’s roles and responsibilities and, rules around how issues and disputes are handled, much of this can be avoided. Identifying and implementing best practices in these areas are something best done by the owner, given they will be the person with the most knowledge of the business, but your accountant is always a good person to speak to should you have any questions. Encourage Financial Literacy To make informed decisions, you need information. Better yet, you need objective information and your various financial statements are as close to ‘objective’ information as you’ll get. Encouraging (or insisting) that your family employees familiarise themselves with the relevant financial materials will ensure that any disputes or decisions are made based on the best information. Recognise the struggle If you’re the business owner and you have family members working for you, there’s a chance that they won’t understand the struggle you’ve had to go through to get where you are. They tend to take things for granted, particularly if they’re younger and weren’t around from the early times of your business. They only know that you have a successful company and have plenty of money and may be under the impression that success is a given. Make sure you remove any of their complacency as complacency is a first step to failure. Form a handover plan When the time comes to move on and hand over the reins of the business to your family employees, there is plenty to consider. Who is best at what job? Who or which people will become the key decision makers? If there are life-changing circumstances for a person (injury, illness, for example) who takes on their role? Who has proven to be competent and who hasn’t? As always, your accountant is always here to help should you have any questions. If you want to learn more about how to handle a family business, please contact us below.

Accounting

Electric Vehicles and Fringe Benefits Tax (FBT) Exemptions

Electric Vehicle FBT Exemption: What’s Behind the Fashionable Concession? Your Questions Answered   What type of Electric Vehicle is exempt? First, the Electric Vehicle  must be a “car” as the FBT law defines it. A “car” is: A vehicle designed to carry less than 1 tonne, and A vehicle designed to carry less than 8 passengers Electric utes over 1 tonne are not “cars” and are therefore not exempt under these rules – there are special FBT rules for utes and don’t assume they are always exempt from FBT. Motorcycles, scooters and similar vehicles are not “cars.” Second, the car must be a Zero or low emissions vehicle that is: A Battery electric vehicle A Hydrogen fuel cell electric vehicle, or A Plug-in hybrid electric vehicle – but only until 31 March 2025. From 1 April 2025, a plug-in hybrid EV will not be considered a zero or low emissions vehicle under these rules unless: Use of the hybrid vehicle was exempt before 1 April 2025, and You have a financially binding commitment to continue providing the vehicle on or after 1 April 2025. An option to extend the agreement beyond 1 April 2025 doesn’t make it a binding agreement. When does an EV become exempt? The electric vehicle must be held and used for the FIRST time on or after 1 July 2022. It cannot be an existing EV you purchased before that date or supplied to an employee before that date. However, it is okay to have ordered a vehicle before 1 July 2022 and have it delivered after that date. The car benefit must be provided to a person who receives or is entitled to receive salary or wages in your business: A current employee (or their associate eg spouse) Not a future or former employee Careful – buying a car for yourself as a shareholder of your company (but not as an employee) may result in falling into the Div7A trap! An EV is held where it is: Owned (including Hire Purchase/Chattel Mortgage) Leased including novated lease, or Otherwise made available to the provider An EV is not “held” where it is owned by the employee. However, the exemption is available where the car fringe benefit is provided under a salary packaging arrangement between employer and employee (say, in the case of a novated lease). What is the limit on the Cost price of the EV? If the EV was subject to Luxury Car Tax at any time, it is not exempt. The LCT threshold for Fuel-efficient vehicles for the 2023FY is $84,916. What if I buy a second-hand vehicle? You need to do some research as there is no exemption if: it was originally purchased by the previous owners before 1 July 2022 the car was EVER subject to the Luxury Car Tax (LCT). So, you must research its history and assess whether it would have been subject to LCT if purchased new. This can be a tricky process as some EVs hover close to the LCT threshold, and the threshold includes additional costs such as dealer charges and added options. What about all the costs of running the electric vehicle – are they exempt from FBT too? The car expense benefits that go with the car benefit are exempt. These are: Registration Insurance Repairs and maintenance Fuel and electricity to charge and run the EV Will a new battery qualify as a “Repair” and therefore an exempt car expense benefit? That depends. Over time, all rechargeable batteries will inevitably lose capacity, a phenomenon known as battery degradation. Typically, you won’t have to replace the battery for at least 8-10 years. However, the current cost of a new battery pack can be expensive, ranging between $12-20K. Technology is rapidly advancing in energy density and long-term battery health. This means that newer batteries may offer more driving range, making your current EV more relevant for a longer time. What does the ATO say about buying a new battery in relation to FBT? A replacement battery may still be a repair where it adds, in only a minor and incidental way, to the overall efficiency of function of the vehicle ie, same power, same storage same lifecycle. If the new battery has significantly more power and energy storage and a longer lifecycle, it would be a capital expense rather than a repair and not an exempt cost of running the EV. Is the Government going to keep this scheme going indefinitely? The government will start reviewing the EV FBT exemption rules by December 2025 and complete a report by mid 2027 on the uptake of EV’s and efficacy of the policy. This gives them an out if it becomes too costly or just isn’t popular. There is also a chance the rules are wound back after a change in government within the next 2 years, but grandfathering rules may apply to existing car benefits. Where can I charge my electric vehicle so that the charging cost is exempt? A commercial charge station, or The employer’s premises Can I reimburse an employee for the electricity costs of charging the EV at their home? The ATO fact sheet does not provide specific guidance on electricity charging costs incurred by the employee (i.e, charging at their home) and reimbursed by the employer. But electricity to charge and run the electric vehicle is likely to qualify for the car expense exemption – as long as the EV being charged is provided as a car benefit.  The ATO recently released a draft guideline, PCG 2023/D1, to assist determining the cost of charging electric cars at home. As of April 1st, 2022, the ATO has established a rate of 4.20 cents per km. The guideline outlines how employers can calculate the reportable fringe benefit (RFBA) of an employee’s electric vehicle and why it’s important to consider why an employee driving an exempt EV may need to maintain a log book. Is an electric vehicle charging station at the employee’s home exempt? No.

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Accounting

What’s in the October 2022 Federal Budget?

The Federal Budget announced on Tuesday night was the second for 2022, and represents the new Government drawing a line under the previous government’s policies. The Budget itself did not present many substantial reforms or initiatives.

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Accounting

What’s in the 2022 Budget for small businesses?

It’s no secret that small businesses have been doing it tough over the past two years. With ongoing lockdowns and restrictions in place throughout 2020 and 2021 due the COVID-19 pandemic, many small businesses have been on the brink of collapse. However, the Federal Budget 2022, which was delivered on Tuesday March 29, has detailed some relief for small businesses, particularly those who are looking to invest in new technologies and training courses to upskill staff. Here’s what is on offer: Technology Investment Boost and staff training courses Small businesses that spend money on either new technologies or training courses for Australian employees will be able to claim 120 per cent of the costs as tax deductions. It’s estimated that there are about 3.6m businesses with an annual turnover of less than $50m so these businesses are now able to deduct these expenses from their taxable revenue at an amount 20 per cent greater than what was actually spent. The Technology Investment Boost applies to portable payment devices, cybersecurity systems and subscriptions to cloud-based services. However, there is an annual cap of $100,000 and a deadline, with the initiative set to last until June 30 next year. In his budget speech, the Treasurer of Australia, Josh Frydenberg, said he was hoping to see small businesses ‘embracing the digital revolution’. “Every hundred dollars these small businesses spend on digital technologies like cloud computing, e-invoicing, cybersecurity and web design will see them get a $120 tax deduction,” he said. Deductions for the cost of training courses for new or existing staff will remain until June 30, 2024. Export support The Budget also confirmed that will be $80 million over four years to provide extra support for small and medium export businesses to re-establish their presence in overseas markets through the Export Market Development Grants program. Cash flow support The Gross domestic product (GDP) uplift rate that applies to PAYG income tax and GST instalments will be reduced to two per cent for the 2022-23 income year. This will ultimately mean lower tax instalments, delivering $1.85 billion in cash flow support for 2.3 million small to medium businesses and sole traders. Debt help The Government also committed $2.1 million for Financial Counselling Australia’s Small Business Debt Helpline. The aim is to make it easier for small business owners to receive financial advice when they notice mounting debt. Mental health support The Federal Government allocated $4.6 million over two years from 2021-22 to support the New Access for Small Business Owners program delivered by Beyond Blue to continue to provide free and accessible mental health support to small business owners. Want to know more about this year’s budget and what your small business is entitled to? Book a free consultation with us. 

Accounting

Tax returns: How to claim correctly and maximise your refund

Lodging a tax return yourself can be both time-consuming and confusing so it pays to seek the help and experience of an accountant/tax agent. One of the biggest pitfalls for people who decide to self-lodge a tax return is failing to claim what they are entitled to. The truth is many people simply don’t know about all the tax deductions they can claim for or they haven’t kept an accurate record of them. Many others forget to report some income or incorrectly enter figures – both of which can lead to interest and penalties. Here are some of the ways to maximise your refund and avoid submitting one incorrectly: Adhere to the ATO’s deadlines Tax returns are due by a particular dates every year, depending on your circumstances. The Australian Taxation Office (ATO) lists these dates on their website here. Failure to meet a deadline can result in penalties. Most tax returns are lodged electronically so ensure that you prepare all of your documents before you are planning to lodge your tax return. If you’re a small business owner, you will also need to submit a quarterly Business Activity Statement (BAS). The lodgment and payment due dates can be found here. If lodging through a Tax Agent like Inline Partners, the ATO provides later due dates than if self lodging. Determine what the deductions are for your occupation Every industry and job is different and the ATO recognises this when it comes to tax deductions. However, there are three standard rules that apply when claiming tax deductions for work-related expenses. Firstly, you must have personally spent the money and not been reimbursed for that expenditure. For example, if you take an Uber to a work meeting and your company reimburses you for it, then you cannot claim it as a tax deduction. Secondly, the expense must directly relate to you earning your income, and lastly, you must keep a record of the expense. This could be in the form of a digital or printed receipt. If you’re unsure about the deductions you can claim for your job, see the ATO’s deductions summary table for different occupations and speak to your tax agent. Keep records for all of your expenses It’s no secret that you need to keep track of your expenses in preparation to lodge a tax return, but few people know that you must also keep your records for a further five years from the date of your last claim. It can be a challenge to store them for long periods. In fact, it’s not uncommon for people to lose receipts or misplace logbooks, which is one of the many reasons why it can be helpful to have a digital app that keeps them all in the same place. Enter: the myDeductions tool. It’s free to use and is available through the ATO app. This app can help you organise and file your tax records. Once you are ready to prepare a tax return, you can upload your records to be pre-filled by the ATO or email them to your tax agent or yourself. Easy!   Do you need help with your tax return and/or Business Activity Statements? Get in touch with us today.

Accounting

Three ways to help your small business become profitable

From tech unicorns to online retail stores that have gone global, we all hear about the businesses that have managed to make millions or even billions within a few short years of launching. Yet, for most of the 2.3 million small businesses in Australia, the reality is very different. In fact, for many businesses, it actually takes years before they turn a profit. Profitability According to IBISWorld the most profitable industries in Australia in 2022 are Superannuation Funds with $137.7 billion total profit and Iron Ore Mining with $56.1 billion total profit. Profitability is just one way to measure success. There are thousands of small businesses that are growing rapidly but are not yet turning over a profit. While this is considered acceptable, it’s important to note that no business can survive in the long-term without profitability. The main ways to boost profitability is to increase sales, improve gross profit (by either increasing prices or reducing input costs) and/or minimise expenses by improving efficiency. So how can we do this? Here are some top tips: Examine and understand your financial situation To find ways to increase profitability, you must first understand your business’s financial situation – and this means looking at the numbers closely. At Inline Partners, we take the time to gather financial data and examine a range of metrics to help determine the financial position of your business. These include revenue growth (%), gross margin (%), operating profit (%), revenue to overhead expenses (%), average sales per customer, return on assets and breakeven point. Once we understand these key metrics, we can implement an action plan to help your business improve its efficiency and productivity, which will lead to higher profitability. Develop a business plan and roadmap for the future There’s a common saying; “businesses don’t plan to fail, they fail to plan”. It’s an accurate catchphrase. Many small business owners create a business plan when they first launch but never come back to it. However, business planning should be a continuous activity for all leaders and business owners. Your business roadmap, which includes how you plan to make a profit and a budget, needs to be reviewed and tweaked regularly to ensure you stay on track. Simple factors such as high staff wages or rent and very low prices can have significant impacts on your business’s bottom line. At Inline Partners, we can identify these financial problems and help you find ways to start improving your profit ratio immediately. Implement systems so you can focus on the big picture It’s easy to get caught up in the day-to-day operations of running a business. We often hear of business owners getting bogged down with menial tasks because they don’t have the right systems in place that will allow them to focus on the big picture. Utilise business software tools that will do all the hard lifting for you and minimise errors that can cost time and money. Streamlining processes will free up your time to be more strategic and allow you to concentrate on the overall goals of the business. Do you need help with your small business? We can help you with accounting, budgeting and structuring your business to improve your profitability. Contact us.  

Accounting

Choosing the right accountant for you and your business

Choosing the right accountant is important for your business’s financial future and long-term success. Whether your business operates in e-commerce retail, property, health, hospitality or another industry, managing your firm’s finances and tax can be overwhelming. Yet, you might not be at the stage where hiring an in-house accountant or chief financial officer is justifiable. This is where an accountant outside of your business can help. The right accountant will save you time and money through strategic advice. They can assist in setting up systems for you and identifying growth opportunities for your business. So what should you look for when choosing an accountant? We’ve developed a checklist for you: Select someone you feel comfortable with It’s important that you don’t rush to hire the first accountant you come across. It’s a decision that shouldn’t be made lightly or in haste. Take the time to meet in person or via video call and discuss what you need and what they can do for your business. The right accountant will become a trusted advisor for you and your business, helping it grow and prosper long-term. Choose someone who you feel comfortable with and can explain financial information and accounting jargon in a way you understand. You want to make sure you feel at ease picking up the phone and asking for their advice when you need to. Look for an accountant with the right expertise and experience Finding an accountant who is certified is the first step. Ensure they are a member of The Tax Practitioners Board – the independent regulatory body responsible for the registration and regulation of tax agents and BAS agents in Australia. You could also find out if they are a member of one of the professional bodies. For example, at Inline Partners we are members of Chartered Accountants, The Tax Institute of Australia, and Institute of Certified Bookkeepers. Next, ask them if they have worked with a business similar to yours before. Working with an accountant who has experience managing a similar sized company and those in the same industry will ensure that they understand the challenges you face. At Inline Partners we have experience with small-to-medium sized businesses across a range of different industries, including retail and e-commerce, software, hospitality, professional services, building, construction, property development and tradespeople. Ask for referrals When searching for an accountant for your business, one of the best places to start is by asking family and friends who also own a business. They might recommend their own accountant or know of someone who is well-suited to your business. Be mindful that the best accountant for your friend who is a plumbing sole trader might not be the best fit for your retail company with five employees. Determine what the accountant will manage Some accountants specialise in particular areas of finance and tax, while others manage every aspect such as bookkeeping and payroll, tax and accounting. Have an open and honest conversation about your needs and objectives to decide how the work will be divided. At Inline Partners we tailor our support to meet the specific needs of your business at any point in time, recognising that your needs may shift as your business grows or circumstances change. Understand their fees and decide what works best for the business Accountants charge in different ways – some charge by the hour, others charge a monthly retainer, while some take a percentage of your turnover. Be sure to understand the fee structure and see which one works best for your business. At Inline Partners, we believe in providing expert and tailored advice so you can focus on what matters in your business. If you are looking for an accountant for your small business, please book a free consultation with us.