Accountants aren’t just for business owners – they are a great asset for everyday people looking to grow their wealth and live their best life. Financial stability allows for greater personal freedom – it lets you book that holiday, buy that campervan and enjoy your life without financial strain.
Unfortunately, many of us are not taught how to manage our money very effectively. We often struggle with debt, financial insecurity and simply a lack of money. It can feel like we are helpless, stuck in a cycle of never having quite enough. The good news is that accountants can help. Trained in the art of commerce, they know all the tricks for making smart investments, saving money on taxes and boosting wealth.
According to this website, it is best if you also follow a reputable accounting firm like Sidcor with a long history on the market. SiDCOR is an award-winning accounting firm that provides customized, exceptional financial advice to individuals and small business owners.
Here are 5 ways that a business accountant can help you reach your financial potential:
Limit the tax you pay (legally!)
Taxes can eat up a significant amount of our earnings. But in many cases, the amount that we pay is too high. Many people end up overpaying their taxes – with some even paying double what they are legally required to pay!
By getting an experienced accountant on your side, you can figure out the amount of taxes that you should really be paying – and the likelihood is, what you’re currently paying is probably too much. By asking the right questions and getting a full picture of your life, financial situation and investments, your accountant can implement strategies to help you sort out your taxes, avoid financial errors and give you the best advice.
In the case that you have overpaid tax to the ATO, it is possible to get a refund. You are allowed to amend your tax returns for a period of between 2-4 years.
Boost your investments
The vast majority of investors lose money when investing due to poor decision-making and not knowing where to allocate their assets. An accountant can help you make smart choices in order to make investments that will benefit you. This is achieved by separating assets into the following four categories:
Security
Placing your wealth in secure, low-risk investments can help protect the assets that you can’t afford to lose. Life is uncertain, but making safe investments can help make it a little more predictable.
Cashflow
When taking care of your business interests, shares, commercial properties, and other developments it is essential that you do so wisely. An accountant can help you best determine where to invest.
Growth
Investing in growth assets like rental properties, land, currencies, equities, and banking can help you grow your wealth over time (think 10+ years).
Lifestyle
Investing in things that you enjoy and which improve your lifestyle is also important. Additionally, setting personal goals, budgets and a life strategy can help you better manage your investments and stay on track.
Protect your assets
Implementing a risk management strategy is an effective way of protecting both your business assets and personal assets and by extension your home and lifestyle. This is achieved by looking at 3 different aspects:
1. Life and income protection: This deals with insurance that covers you in the event of an unforeseen circumstance occurring in order to reduce the amount of disruption that occurs to you and your family.
2. Business & personal asset protection: Preparing the correct structure for your investments, business and personal assets can help keep your assets safe.
3. Estate planning: This involves deciding on a plan to protect your assets and your loved ones in the event of your passing.
Self-managed super fund (SMSF)
Setting up a self-managed super fund isn’t for everyone, but if you want better control of your super fund and have the time and energy to manage it, it may be an option. An SMSF also gives you a greater range of investment opportunities than a traditional super fund does, and could potentially help you save on tax.
A licensed accountant can examine your suitability and help you decide whether an SMSF is for you. They can also advise you on how to get money into your funds, such as through employer and self-contributions and capital gains tax concessions. They can also advise you on ways to take money out of your fund, such as by continuing a pension. If you need advice on how to best invest your super, they can refer you to a suitable advisor.
Conclusion
From reducing your tax payments to improving your investments, there are many benefits to hiring an accountant to help you manage your finances. Don’t delay – get personalized advice now in order to secure your future and create the life of your dreams.
