All accountants follow similar systems of recording, analysing, interpreting and reporting the financial positions and tax obligations of their clients. However, within the broad accounting field there are two distinct branches:
What is a bank guarantee and why would you need one? A bank guarantee is a promise made by a bank on behalf of certain clients to pay the clients’ debts if they are unable to. The bank will only provide this guarantee if their client has sufficient assets to provide security, e.g. property or cash investments.
Accounting has been performed since the earliest period of civilisation. Archaeological records show that as early as 3,000 BC the Egyptians and Sumerians kept records of farm production and tax collection. The double-entry style of bookkeeping, which is still the chief system used today, was apparently developed by Venetian merchants in Italy in the thirteenth century. In 1984 the Australian Government established the Australian Accounting Standards Board to improve the quality and consistency of accounting reports and to cater for businesses trading both locally and internationally. Accounting information is used by management for planning and control purposes and to comply with government requirements. Common accounting terms include:
Many people fear a visit to their accountant like they fear the dentist – and a major topic of on-line forums is discussion of accountants’ fees. Whether you are an individual wanting a cheap, quick tax return submitted, or a large corporation requiring specialist advice, the answer is the same: accountants charge for their time.
Having a good relationship with your accountant and feeling confident that he understands your financial situation and goals can alleviate much stress and allow you to concentrate on what you do best, i.e. building your business. What should you look for when engaging the services of an accountant, either before starting up a business or if you are not happy with your present accountant? Here are 5 tips to help you choose an accountant: