There are plenty of positive reasons why people decide to become a contractor or tradie. You may have made the decision so you can have a better work-life balance, more control over your career or perhaps you wish to boost your earnings. The downside to being self-employed is that it can be very time consuming to manage and keep track of your finances. And you’ll no doubt find bookkeeping a chore. You’ll also inevitably be faced with the daunting task of paying the relevant taxes. Many tradies choose to use contractor accountants to minimise the amount of bookkeeping they have to do, giving them more time to focus on their actual work. So that tax time comes and goes, minus the headache.
The advantages of using a contractor accountant
A dedicated tax professional will understand how a tradies business works and the best way to structure the capital of a limited company in a legally tax-efficient way. A good tax agent can offer tailored proactive tax planning and advice which is specific to your business and your circumstances. Your chosen contractor accountant will take the time to understand your business, take into consideration your lifestyle and future goals, then work with you to achieve a positive outcome ahead of tax time.
Reasons why you should have a tradie accountant
If you’re a tradie, you’ll know that the sheer amount of number-crunching and paperwork involved. Trying to stay on top of it all in the lead up to tax time can be overwhelming. Then come mid-year, anxiety hits when you realise you’ve fallen behind. The good news is you don’t have to do this on your own. If you haven’t met with a tax professional, there are seven major reasons why should do so right away.
A tax professional’s in-depth expertise enables them to manage your books, tapping into their years of industry experience, they’ll be able to improve your bottom line.
They’ll help you:
- Deploy the right systems and processes early
- Streamline tax processes
- Ensure compliance
- Make informed business decisions
- Manage cash flow efficiently
- And above all else, save time
It’s nearly tax time, is it too late?
It’s never too late to enlist the help of a good contractor accountant. Even if just to prepare for the next year ahead. But if you can get in quick, and tax time is looming, it’s best to leave all the bookwork to a tax professional who specialises in looking after tradies. You really want to make sure you have a plan in place without leaving it all to the last minute.
Because there’s nothing worse than that last-minute scramble to find a good contractor accountant. Implementing processes and systems that suit your business, a good tradie accountant will have access to accounting software like Xero, QuickBooks, or MYOB Online which are all effective bookkeeping tools. Offering you peace of mind, this will take the stress out of doing all your bookkeeping at the last minute, right before tax time. You can also ask them to clean up your databases and establish proper data entry practices to reduce bookkeeping headaches in the future.
Still have tradie taxation questions to ask? Our Melbourne accounting team is more than happy to chat through your options. Drop in and see us today or find us online and view our huge range of services to see if we’re the right fit for you. Any problems, give us a call direct on 03 5629 6133. We’re here to help!