Accounting and tax services FAQs

tax FAQs

What is an online accountant?

An online accountant is a professional who provides accounting and financial services through the internet, instead of in-person. They typically use cloud-based software to perform tasks such as bookkeeping, tax preparation, and financial reporting for clients. This allows for remote access and collaboration, making it a convenient option for both the business owner and accountant.

Should I use an online accountant?

The decision to use an online accountant depends on your specific needs and preferences. Here are some factors to consider:

  1.   Convenience: Online accounting allows you to access your financial information and work with your accountant from anywhere, at any time.
  1.   Investment: Online accounting services are often more affordable than traditional in-person accounting services.
  2.   Expertise: Reputable online accounting firms have knowledgeable and experienced accountants who can provide high-quality services. This way you’re not locked to your local accountant’s skills and experience.
  3.   Technology: Online accounting relies on technology for seamless communication, document sharing, and data storage, which can improve efficiency.
  4.   Access to real-time data: With online accounting, you can have real-time access to your financial information, allowing you to make informed decisions quickly.

If you feel comfortable with technology and value the convenience of remote access, an online accountant may be a good fit for you. You can view our accounting services here.

accounting FAQs

What does an online bookkeeper do?

An online bookkeeper is a professional who provides bookkeeping services via the internet, using cloud-based software. Their responsibilities may include:

  1.   Recording financial transactions: Recording and categorizing transactions such as sales, expenses, and payments, in an organized and accurate manner.
  2.   Managing accounts payable and receivable: Keeping track of money owed to and by the business, including invoicing, tracking payments, and reconciling bank statements.
  3.   Payroll management: Processing employee payroll, including calculating and paying employee salaries, taxes, and benefits.
  4.   Financial reporting: Providing financial reports, such as income statements and balance sheets, to help business owners understand their financial performance and make informed decisions.
  5.   Tax preparation: Assisting with tax preparation, including gathering financial information and completing Business Activity Statements.

An online bookkeeper can help your business keep financial records organized and accurate, freeing up your time for other tasks. View our bookkeeping services here.

Do bookkeepers do payroll?

Yes, many bookkeepers offer payroll management services. This includes tasks such as calculating and paying employee salaries, taxes, and benefits, tracking paid time off, and producing pay stubs and other payroll reports.

Bookkeepers can handle the day-to-day tasks of payroll management, freeing up business owners and managers to focus on other aspects of running the business. They can also help ensure that payroll is handled accurately and efficiently, reducing the risk of errors and potential penalties. View our bookkeeping services here.

How much does an online bookkeeper cost?

On average, online bookkeeping services you can invest anywhere from $250 to over $1000 per month. The investment depends on the level of service required, the complexity of your business and number of monthly transactions. At creditte chartered accountants & advisors we offer customised pricing based on your actual needs. We can provide you with a package that best fits your budget and requirements. Take a look at our packages here.

tax FAQs

What is the main purpose of tax?

The main purpose of tax is to raise revenue for the government to fund public goods and services, such as infrastructure, education, and defense.

What is accountancy and taxation?

Accountancy and taxation refer to the practices of managing and reporting financial information, and complying with tax laws and regulations.

Accountancy: Accountancy involves the recording, classifying, and summarizing of financial transactions to provide accurate and up-to-date financial information about a business or individual. This information is used for decision making, tax compliance, and other purposes.

Taxation: Taxation refers to the process of determining and collecting taxes owed to the government by individuals and businesses. This includes calculating tax liabilities, preparing and filing tax returns, and ensuring compliance with tax laws and regulations.

What are the different types of tax?

There are various types of taxes, including: 

  1. Income Tax on the income earned by individuals and businesses.
  2. Sales Tax on the sale of goods and services.
  3. Property Tax on real estate and personal property.
  4. Capital Gains Tax on the profit made from selling investments or property.
  5. Estate Tax on the transfer of property or assets after death.
  6. Gift Tax on gifts received by individuals.
  7. Excise Tax on specific goods or services, such as gasoline, alcohol, and tobacco.
  8. Payroll Tax on wages and salaries paid to employees, which are typically used to fund Social Security and Medicare programs.
  9. Corporate Tax on the profits earned by corporations.

The specific types of taxes imposed, as well as the tax rates, can vary depending on the jurisdiction and the laws and regulations in place.

Is it worth it to pay someone to do your taxes?

The decision to pay someone to do your taxes depends on several factors, including:

  1. Complexity: If your tax situation is simple, you may be able to do your taxes yourself or with free software. However, if your taxes are complex, it may be worth it to pay a professional to ensure accuracy and avoid potential penalties.
  2. Time: Doing your taxes can be time-consuming, especially if you have a complex tax situation. If you don’t have the time or expertise to do it yourself, it may be worth it to pay someone to do it for you.
  3. Peace of mind: Working with a professional can give you peace of mind knowing that your taxes are being handled correctly and efficiently.
  4. Potential for savings: A professional may be able to identify deductions or credits that you may have missed, which could lead to a lower tax bill or a larger refund.

Appointing creditte chartered accountants & advisors to do your business taxes may be worth it if you value the time, expertise, and tax savings that it provides.

cfo FAQs

What is accounting and advisory services?

Accounting services may include bookkeeping, financial statement preparation, tax compliance, and financial reporting.

So, what is the role of a business advisor? Business advisory services go beyond basic accounting. They use the financial information provided by accounting to provide more comprehensive support that will help the businesses improve their operations and achieve their goals. These services may include strategic planning, market analysis, process improvement, risk management, and technology solutions.

What is strategic business advisory?

Strategic business advisors like creditte chartered accountants & advisors work with business owners and managers to identify the challenges and opportunities facing the business. We develop and implement strategies to address these challenges and capitalize on opportunities. This can include areas such as market analysis, business planning, organizational structure, operational improvements, risk management, and technology solutions.

What is CFO service?

CFO stands for Chief Financial Officer, who is responsible for managing a company’s financial operations, including financial planning, budgeting, accounting, tax, and financial reporting. The CFO provides strategic financial guidance to the CEO and other top executives to support decision-making and long-term success of the company. View our CFO services here

At what stage do you need a CFO?

A CFO can assist you at any stage. A CFO can help right from the get-go, or when you need to take back control of your business, or implement a clear strategic plan or if you are planning on selling your business. You can view our CFO services here.

When should a small business hire a CFO?

Small businesses will benefit from appointing a CFO when they are ready to take their financial operations to the next level and need expert guidance to support their growth and success. By outsourcing this function, you have a reduced cost with superior service. Take a look at how we can help you with our CFO services here.

Can a small business have a CFO?

Yes, a small business can have a CFO. In fact, many small businesses can benefit greatly from having a Chief Financial Officer at their disposal. A CFO can provide expert financial guidance and support that will help a small business navigate complex financial operations, regulations, make informed decisions and plan for long-term success. A CFO can also help a small business secure funding and navigate the financial aspects of growth and expansion. While some small businesses may not need a full-time CFO, they should consider appointing a virtual CFO to meet their specific needs. You can see our virtual CFO services here.

bas questions

What is included in a BAS statement?

A Business Activity Statement (BAS) is a tax form used in Australia to report and pay several taxes. 

The following information is typically included in a BAS:

  1.   GST: Amount of GST collected and payable on sales and purchases.
  2.   PAYG withholding: Amount of PAYG withholding collected from employees and paid to the government.
  3.   Fringe Benefits Tax (FBT): Amount of FBT payable on benefits provided to employees.
  4.   Wine Equalisation Tax (WET): Amount of WET payable on the sale of wine.
  5.   Luxury Car Tax (LCT): Amount of LCT payable on the sale of luxury cars.Other taxes: Amounts payable for other taxes, such as the Australian Resource Rent Tax.

The BAS statement is used to reconcile the amount of tax collected and payable, and any discrepancies must be addressed. The BAS must be lodged with the Australian Taxation Office (ATO) on a regular basis, typically quarterly or monthly. Speak to us if your business needs assistance with your BAS preparation and lodgement.

What is meant by business structure?

Business structure refers to the legal form a business takes and the framework that governs its operations. It determines the ownership and management of a business, the liability of its owners, and its obligations to stakeholders such as employees, customers, and government. There are four main types of business structures in Australia. Read more about how to find a suitable structure for your business here.

What business structure is best for small business?

A Sole Proprietorship is the simplest and most common form of business structure for small businesses, especially for freelancers and sole traders. It is easy to set up and has few legal requirements. That said, one should consider the personal liability and tax implications. If you need assistance with choosing the right business structure then read this post on choosing a suitable business structure.

How do I decide what business structure to use?

The choice of business structure depends on a number of factors, including the size and type of business, the number of owners, the level of personal liability desired, and tax implications. You should also take into account the personal legal protection from business risk that each structure offers. It is important to choose a structure that meets the specific needs of the business and its owners. Read more about how to find a suitable business structure here.

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