Why your business needs an accountant part 1

Why Your Business Needs an Accountant Part 1

If you own a small or growing business, you will obviously be aiming to keep the costs down wherever possible, and avoid unnecessary expenditure.

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So you may have decided to dispense with the services of an accountant, and deal with your tax and other financial affairs yourself. However, many business owners who have tried this have realized too late that it has been a costly mistake.



The problem is that most small business owners are experts in their own field -- for instance architecture, hairdressing, building -- and may not have much experience in tax compliance or financial record keeping.



There are several kinds of accountant in Australia, and the type you choose will largely depend on what you want the accountant to do. The most prestigious type is the CA or Chartered Accountant, who is a member of the ICAA or Institute of Chartered Accountants of Australia, but one of these may be too high-powered and expensive for your purposes.



Alternatively you could choose a CPA or Certified Practicing Accountant, who is a member of CPA Australia, or a PNA or Professional National Accountant, who would belong to the NIA or National Institute of Accountants. The essential thing is to ensure that the accountant you choose is a member of one of these professional bodies.



Probably the main reason you are likely to need an accountant is for tax purposes. Einstein is reported to have said that the hardest thing in the world to understand was tax, and the Australian tax system is reputed to be one of the most complex on the planet. Tax accountants are there to guide you through the complexities of the system, and there are many reasons why using them is a good idea.

