Tax accounting is the preparation, payment and return of taxes for individuals and organisations, as well as planning to minimise the amount of tax that is required to be paid to the government.
Tax accountants make sure that the financial affairs are in compliance with ATO regulations. Effective tax management is necessary to handle the complicated taxes of large businesses or individuals of high net worth, to make sure they are legally compliant.
This includes accurate compiling of documents, handling funds and investments, and forecasting of cash flow and tax finances. The applicable taxes can be as wide-ranging as GST, PAYE and stamp duty.
As well as tax preparation and compliance, tax accountants can also create a tax efficiency strategy for how to reduce taxable income. Nearly every business decision will have implications around how to reduce tax, and taking this into account will help to reduce the tax burden and cut down on costs.
Tax laws are complex and change over time, meaning that taxpayers need to rely on the expertise of professional tax accountants to make full use of their tax concessions. Tax advisors are an essential part of any wealth management or investment strategy.