Nowadays, having absolute confidence in accounting and tax advice is absolutely fundamental. That is an idea that practically all entrepreneurs share, but why is it so important to have a good tax and accounting advisor whatever the size of our company and our sector of activity? That is the important issue that we discussed in today's article.

Do you know that in Australia, there is a tax free threshold, that means you will be entitled to an $18,200 tax-free threshold. This means you do not have to pay any taxes if you earn this amount in a month.

What is accounting and tax advice?

To know why the figure of the accounting and tax advisor is so important for the smooth running of our business, the first thing we have to find out is what functions this type of company performs. As you can imagine, the list of tasks is quite broad, so we have tried to summarize it in the form of a list distinguishing the accounting functions from the purely fiscal ones.

Main functions of the accounting area

Within the accounting section, the specialized personnel of the consultancy that we choose should dominate the so- called General Accounting Plan or PGC . This knowledge at the expert level is basic, but in addition the accountants of the advisory must know thoroughly the rest of the accounting regulations that must be fulfilled by any company based in Spain, a regulation that publishes and updates the ICAC(Institute of Accounting and Auditing of Accounts). 

Another essential task that we must ask our accounting advice is that you know in detail our annual accounts, the dates on which we must present the financial statements and the year-end closings, etc.  

Main functions of the fiscal area

Within the tax area , the advice we hire should guarantee not only that its professionals know in detail the General Tax Law , they also need to be able to advise us on the different tax deductions that exist and that we can use to save fiscal costs in our organization.

But in addition to knowing and applying the current regulations, a tax adviser should take care of the inevitable communications with the Tax Agency, a fairly simple task for a professional, but that can become a nightmare for most of the entrepreneurs who must dedicate themselves to the really important thing: to grow your business .

Counseling and tax advice, why is it so important?

If you have read the previous summary on the main functions performed by a good accounting and tax advice, you have already got an idea of why it is so important to devote time and effort in finding the best advice for our company . There are many reasons, but in essence we could unite them in two large groups: save costs and avoid fines and problems.  

By saving

A good accountant and tax advisor not only must properly carry accounts of our company, we also have to help us manage and save on daily expenses , to request the tax deductions to which we are entitled, to advise on the different forms of salary flexible that we can propose to our employees, etc.

To avoid fines, penalties and problems

In recent years, the Treasury has intensified its business inspection work. That is very good since all taxpayers must comply with our tax obligations, but we run the risk of not complying with the regulations due to ignorance or overwork. The solution? To have the support of an accounting and tax advisory that looks after our interests and that ensures that we faithfully comply with current accounting and fiscal regulations.

Now we would like to read your opinion: do you think it is worth investing in good accounting and tax advice? What has been your experience with this type of company? Go ahead, write a comment.

Author's Bio: 

Angelina is regular contributor at The Independent.