Today's blog article is a guest post from Sarah Grey who works in marketing at TaxBanter which provides effective professional tax training to businesses of all sizes throughout Australia. When Sarah has any free time she enjoys shopping, swimming and taking her dog for a walk.
The main benefit of being trained in taxation and how it applies to you is pretty simple; it will make your life easier. It might seem like it’s not worth your while or that your business dollars would be better spent elsewhere but this is a misconception. It will always be worth your while to understand how taxes work because you will always have to pay them. It is definitely in your best interest to know the rules of paying taxes because that will mean that you know how best to do it. That means not paying too much when you don’t have to and not paying them before you have to. It also means avoiding making mistakes that could cost you money.
Making a mistake in your tax can result in legal consequences such as a fine from the IRS which is not going to help your business. The right accountant can revolutionize the way that you run your business because it can change the amount of money that you have at your disposal. The popular misconception of accountants as ‘bean counters’ could not be further from the truth; inaccurate accounting can make or break a business operation. Without capital managed well a business will go bankrupt no matter how many good ideas or how much good will is behind it.
That includes everything even things like your superannuation. What could be more important than that? You may love what you do and be very passionate about it but ultimately you are also probably doing it to earn a living. To do that you need to make sure that your business is solvent and financially sustainable. So how can you learn about your finances and your taxes? For starters you can begin by asking your accountant. You can also participate in a tax class or seminar, which are offered by places like TaxBanter. You don’t have to actually go as far as getting a whole accounting degree.
If you aren't financially inclined or the thought of even looking into your accounts gives you a panicky feeling the tax system can seem like a weird and murky world of insiders and jargon. The sad truth is that we are all subject to the particularities of tax law even if we don't understand it. If you don't understand tax you probably don't know how you could benefit from understanding and controlling your tax either. It may seem like the most boring and least important part of running a business but it's not. Even if you'll never understand the entire tax system understanding the parts of tax law that apply to you makes an enormous difference to your finances and can save you thousands of dollars.
It's simple, an understanding of how taxes work and how you are taxed will help you gain better control of your business and you will be better able to administer your finances to your advantage. Sending one of your employees to a tax seminar could be a great investment or attending one yourself to learn about personal finances is a great investment.