Working out motor vehicle expenses for your business can be tricky. The ATO has created a fact sheet to help you get your motor vehicle expenses right.
The Small business motor vehicle expenses fact sheet will help you answer common questions about:
Remember, registered tax agents and BAS agents can help you with your tax.
Next step: Download the ATO Small business vehicle expenses fact sheet
When I am asked what my job is and answer that I am a bookkeeper I invariably get the following comment:
"okay, so you are an accountant"
I then start my usual lengthy explanation stating the differences between an accountant and a bookkeeper and more often than not the look on my interlocutor's face can be described as:
"whatever and your point is?"
There is a frequent mistaken belief that bookkeeping and accounting are equivalent. While they equally contribute to help business owners with their finances, there are some substantial differences between both jobs. From the start, it is central to recognise that bookkeepers and accountants are both an essential part of any business.
While a bookkeeper tends to help with the ongoing financial recording that keeps the business running efficiently, the accountant, in contrast, is the person who analyses the data produced by the bookkeeper and is best suited to give financial advice. The accountant also has a robust understanding and knowledge of the taxation laws crucial to assist businesses in that particular area.
As indicated earlier, bookkeepers are essential in the day to day financial maintenance of the business. The bookkeeping process can be summarised this way:
It is important to notice that while an accountant will also be qualified to perform the above process, the difference in fees charged by bookkeepers and accountants is significant. It is therefore advised to carefully consider this financial aspect when deciding which tasks to give to a bookkeeper or an accountant.
The role of an accountant is more of a strategic adviser, using business insights gained from assessing key financials to help business owners make informed decisions that will move the business forward. Services offered by accountants include:
While not an exhaustive list of an accountant’s services, the tasks outlined here serve to highlight the analytical and advisory nature of their position.
Ultimately businesses receive the most value from a bookkeeper and accountant when they work together, rather than in competition with each other, or duplicating the work done for the client. As a team bookkeepers and accountants can bring a richer experience to business owners.