While it's understandable to worry about the cost of hiring a prestigious accounting firm like Amplify Finance, we challenge that notion and argue that not utilizing their services could be even more costly. If you view your annual accounting fees as a drain on your business profits, it's a clear indication that your accountant isn't positively impacting your growth or financial performance.
No matter if you're a budding sole trader, a thriving partnership, a well-established trust, a company with limited liability, or a non-profit organization, you'll benefit immensely from strategic tax guidance. Expertise in GST, capital gains, tax optimization, and salary structuring, coupled with accurately prepared and filed tax returns, financial statements, and business activity statements, are essential tools for your success. Furthermore, a management accountant's assistance in crafting cash flow projections is invaluable when navigating your business's expansion and tax planning needs.
Financial Accounting involves the compilation and presentation of financial reports, based on historical data, for the benefit of various external stakeholders who rely on this information to make economic decisions about a business. The preparation of these reports is governed by Generally Accepted Accounting Principles (GAAP), which establish accounting and auditing standards to ensure the accuracy and reliability of monetary reports. Under an accrual-based accounting system, GAAP also guides the creation of financial statements like balance sheets and income statements.
In addition to GAAP, the rules outlined in the Corporations Law and the Australian Stock Exchange (ASX) Listing Rules also play a significant role in directing the preparation of financial reports. These reports are used by a wide range of external parties, including employees, investors, suppliers, customers, franchisors, banks and financial institutions, consumers, sponsors, professional associations, contributors, government agencies, and overseas corporate owners, who need to make informed decisions about the financial health and prospects of the business.
Management accounting focuses on providing tailored information to internal users, such as owners and management, to support their decision-making processes. Unlike financial accounting, which is governed by strict rules and regulations, management accounting reports are not bound by any formal guidelines and can therefore be as detailed or as concise as needed. This flexibility allows owners and managers to access economic information and reports that are specifically designed to assist them in various management tasks, including budgeting, pricing strategies, profit forecasting, determining the optimal sales mix, evaluating employee performance, establishing overtime requirements, assessing plant capacity, and investing the resources of the entity. By providing customized insights, management accounting plays a crucial role in enabling informed and effective decision-making within an organization.
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