Why take protection insurance for random audits

According to the law prevailing in Australia, the Australian Tax Office (ATO) is entrusted with the task of conducting random audit of companies and various other establishments. The purpose of this audit is to ensure that you have complied with the tax law of the State. At the same time, during the process of audit by the ATO, you may have to incur certain expenses like fee for the auditor and so on. In such cases, you may avail the benefits of audit protection insurance, which protects your firm from such unforeseen expenditure.

Chosen randomly:

As already said, ATO conducts the audit randomly. The ATO may randomly select your business enterprise and conduct the audit. In the normal course, by rotation most of the organizations come under the scrutiny of ATO at least once in every four years.

Cuts into profit:

This audit is conducted without giving prior notice to you. At the same time, the expenses on random audit can be huge. In such cases, you might not have created a budget to meet the expenses on such random audit. Naturally, it will be an extra burden on your income. In order to cover such unforeseen expenses, you may take up the audit protection insurance.

Compliance with related laws:

While conducting the random audit, the ATO will examine your compliance with the tax law on matters relating to payroll tax, land tax, compensation to workers, development grants if any, GST, superannuation payments and various other incomes. In addition to this, the ATO will also examine, while dealing such matters, whether you have also complied with various related legislations that may be in force.

Look for old records:

Once the ATO starts the random audit, you are obliged to provide him all the necessary records. In the normal course, the ATO may also require written explanation on various accounting or legal issues. In such cases, your staff may have to work extra hours to dig the old records for which you may have to compensate the staff suitably.

Services of Attorneys or Chartered Accountants:

There can also be instances that you may have to take the assistance of your attorneys or chartered accountants to provide suitable clarifications to the ATO. In such cases, you will have to pay a suitable remuneration to the attorney and the chartered accountants. All these will involve huge expenditure and in order to meet such unforeseen expenses it would be ideal that you may take an audit protection insurance.

Management Liability Insurance:

At the same time, it should be noted that protection insurance for audit is different from the Management Liability Insurance. The random audit conducted by the ATO is not covered by the Management Liability Insurance.

Choose a suitable insurance policy:

You can take the insurance from any of the reputed insurers. The terms and conditions of insurance for audit protection differ from one insurance company to another. Some of the insurance companies have a unique insurance policy which covers both SMSF and tax audits. It would be ideal that you may contact your chartered accountant who would help you to choose an insurance policy that is suitable for your business.

Top 5 Reasons to Outsource Your Business Accounting Function

Outsourcing is becoming increasingly popular in the world of business. In the past, outsourcing has been seen as an option for the small businesses who often work on lean budgets. However, today the floodgates of outsourcing have opened to all types of companies and many are reaping its benefits – keeping costs down and keeping quality up. Accounting is one of the commonly outsourced functions in businesses. Accounting is a broad function that includes book-keeping, accounting, tax preparation and financial reporting services. Outsourcing of accounting has become even better with a deluge of cloud-based systems and availability of advanced financial automation solutions. With a good accountant Port Adelaide professional on your side, you have a lot of benefits to reap at the end of the year and they include:

Reduce overheads and save money

According to research, companies spend between 2 and 5% of their revenue in training staff in the accounting department. This is a cost that can be completely eliminated by outsourcing your accounting function. Besides that, outsourcing will get rid of expenses related to employee benefits as well as office, hardware and software supplies. Also, costly financial mishaps that could be adversely affecting your bottom line shall be a thing of the past. By hiring a reputable and professional accountant Port Adelaide has, you can be guaranteed of an expert job that’s free of mistakes.

Accountant Port adelaide

Improve efficiency of operations and save time

This is one of the invaluable benefits of outsourcing accounting services. By spending less time in bookkeeping, preparing financial reports and overseeing payrolls and bills, you will free up time that can be directed back into your managerial duties. Consequently, you will experience tremendous business growth due to efficiency of the day-to-day operations.

Access to expert services

If you are a small business, chances are that the staff member in charge of the accounting task isn’t a professional accountant. Perhaps they have a background in accounting but it is not their core competency. If you find accountant Port in Adelaide has today whom you can hire on a regular basis, then you will have access to the resources and skills of someone who is versed in different areas of accounting. This means that your accounting records will be done accurately and in a timely manner hence protecting you from the consequences of underpayments and inaccurate paperwork.

Reduce financial risk

A lot of companies suffer the adverse effects of embezzlement of funds by employees. A viable solution to such eventualities is outsourcing the accounting functions. A third party will scrutinize your money trails without bias and identify any loopholes. As such, a reputable Adelaide accountant Port has will help reduce internal frauds by introducing an impartial system of checks and balances.

Improve financial processes

Unknown to many business owners is the benefit of improved and efficient accounting processes brought about by outsourced services. Hiring an accountant Port Adelaide professional enables you to beat deadlines and meet all your regulatory requirements. And with cloud-based accounting applications available today, you can access your financial data anywhere at any time.

Outsourcing accounting services is indeed a perfect solution for all types of businesses, whether large, mid-sized, small or even start-ups. Learn more how Niko Accountants can simplify your accounting work on http://www.gfnikos.com.au/services.html.

 

When to Get a Financial Advice Online

When to Get a Financial Advice Online

There comes a turning point in your life wherein you go through a financial crisis. During these times, it is important to come up with a good plan to ensure that you can restore your finances back in order. There are several websites and professionals that offer free financial advice online. You should take advantage of them to get a clear sense of what you need to do to turn things around.

 

 

When it comes to seeking free financial advice online, timing is crucial. When you wait too late before you seek for professional help, it may be too late and the situation is impossible to reverse. Therefore, you need to look out for signs that indicate it is time to consult someone about what you can do to improve your current situation.

 

You Think You Need Help

 

The moment you think you need help, you do! As soon as you feel like you are in a dire situation and you could not think of other possible ways to improve it, it is time to consult a professional. Financial advisors and experts are experienced in all aspects relating to your financial health. They have seen the worst of the worst. Therefore, they are sure to find a solution to your financial woes.

 

In addition, they serve as the voice of reason: they provide you with an objective point of view about your financial state. Too often, when you are overwhelmed with debt, you become highly stressed about your situation. When you seek free financial advice online, you will obtain logical information to overcome your current situation.

 

You Hate Dealing with Money

 

Not everyone is comfortable with handling money matters. Therefore, you can leverage the experience and expertise of a financial expert in this regard. Money management is a big thing and a financial advisor can provide the insight you need or lack.

 

You Need Impartial Opinion

 

As mentioned earlier, it is easy to get overwhelmed when you are faced with a seemingly insurmountable debt problem. A financial advisor can serve as a third party source of information so you can view things from a different perspective. You can learn all you want about investing and money management, but that is nothing compared to the years of experience that a financial advisor has obtained in the industry. You should therefore leverage that knowledge and information that they have to your advantage.

 

You Want to Make an Investment

 

Investing is one of the biggest financial decisions you will ever make. Do not be fooled into thinking that you should seek the help of a financial advisor only when you are in deep financial trouble. You could also use their expert advice in terms of making key financial decisions such as starting a new investment. Investing is such a huge leap in terms of making your money grow, while also putting you at risk of losses. Therefore, you have to be strategic when making a move to ensure that you achieve gains rather than losses.