The Simplified Tax System seems to get increasingly more complicated. We all work hard to make a dollar, so most people are not in a hurry to hand over more than is absolutely necessary to the Government Coffers.
Can bookkeepers help to reduce your taxes? The short answer is since most bookkeepers are not registered tax agents, they cannot offer advice in that area.
The long answer is that your bookkeeper should be helping you account for every dollar that comes in and out of your business. There may be expenses that occured that you might have missed – so if your bookkeeper is diligent then it’s more than likely there’ll be additional expenses that you can claim for.
Miscellaneous expenditures can save a small business owner hundreds if not thousands of dollars in tax liabilities
Your bookkeeper should be recording all your financial transactions – so it’s up to your accountant to ensure that you are making a claim where ever you can. Your bookkeeper can only record day-to-day transactions based on your paperwork, so if you don’ have the documentary evidence, then you may miss out on opportunities to reduce your tax liabilities
Many small business owners do not keep up with ALL expenditures each month, so if record keeping is not a strength in your business, then let your bookkeeper know so that they can set up a system for you. Good record keeping is of paramount importance and can reduce your tax liability tremendously.
Get into the habit of keeping all your documentation and ensuring that it is delivered to your bookkeeper. It will more than pay for itself in the long run.
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