Tax Accounting services with PremierOne
Tax accounting is the means of accounting for tax purposes. It applies to everyone — individuals, businesses, corporations, and other entities. Even those who are exempt from paying taxes must participate in tax accounting. The purpose of tax accounting is to be able to track funds (funds in as well as funds going out) associated with individuals and entities. With a sophisticated Australian Tax System, it’s highly essential that the tax on the business profits or the employment income or the capital gains or the rental income from properties has to be appropriately worked out and be reported to the ATO in the form of annual tax returns.
Premierone-with highly experienced and dedicated tax experts can look after all your tax accounting requirements. It could be the issues ranging from selecting a business structure, repatriating funds into Australia from your overseas savings or superannuation account, receiving money as a gift from your loved ones, joint ownership of an investment property, sale of property in overseas and so on. PremierOne can tailor solutions to your specific requirement and circumstances.
Tax Accounting for an Individual
For an individual taxpayer, tax accounting focuses solely on items such as income, qualifying deductions, investment gains or losses, and other transactions that affect the individual’s tax burden. This limits the amount of information that is necessary for an individual to manage an annual tax return, and while a tax accountant can be used by an individual, it is not a legal requirement.
Meanwhile, general accounting would involve the tracking of all funds coming in and out of the persons’ possession regardless of the purpose, including personal expenses that have no tax implications.
Tax Accounting for a Business
From a business perspective, more information must be analyzed as part of the tax accounting process. While the company’s earnings, or incoming funds, must be tracked just as they are for the individual, there is an additional level of complexity regarding any outgoing funds directed towards certain business obligations. This can include funds directed towards specific business expenses as well as funds directed towards shareholders.
While it is also not required that a business use a tax accountant to perform these duties, it is fairly common in larger organizations due to the complexity of the transactions.
Tax Accounting for a Tax-Exempt Organization
Even in instances where an organization is tax-exempt, tax accounting is necessary. This is due to the fact that all organizations must file annual returns. They must provide information regarding any incoming funds, such as grants or donations, as well as how the funds are used during the organization’s operation. This helps ensure that the organization adheres to all laws and regulations governing the proper operation of a tax-exempt entity.