Demand for accounting/tax services will grow over the next 12 months
Accounting/tax practices are fortunate to be providing an essential service during the COVID-19 pandemic. Demand for accounting/tax services will grow over the next 12 months.
The reasons for this include:
- Accountants/tax agents keep Australia’s taxation system operating and functioning. We help the Government collect the taxes, which provides them with the essential revenue to support their Government spending. As such, accounting practices/tax agents are as vital to the economy as electricity and water. For the whole Country’s sake (and our own, of course), we need to keep working and doing our job operating our business as usual (as much as possible).
- The average salary and wage employee receives an annual tax refund of $2,400 pa when they lodge their tax return. Australia’s 10 million employees will want to get this money in their pocket as soon as possible and accordingly we can expect a significant increase in lodgements in July and August.
- Business clients will need to get their BAS returns lodged to access the Government’s tax stimulus payments (i.e. up to $25,000 tax-free payment to employers who pay PAYG withholding tax in the period 1st January 2020 to 30th June 2020).
- Business clients still need their annual tax returns lodged with the ATO. This is compulsory and will not change.
- Business clients are going to need more business advice and assistance from their accountants than ever before. Accountants are the reliable, trusted advisor that business clients turn to for advice and support in their times of need. Accountants can help them with:
- Understanding (and accessing) the Government’s tax stimulus package,
- Managing their cash flow,
- Assisting them with financing,
- Assessing the continuing viability of their business (and whether it should be immediately closed or has a profitable future),
- Managing staff and contractual obligations.