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Accounting Terms: E (Not T) F

Other than hiring a dedicated accountant, there's no simple, one-stop solution for managing your business accounts easily. Instead, you'll need to learn a range of dedicated terms to make sure you're familiar with your obligations and meeting them correctly, but luckily, our team can help you with that, too.

The Name's Bond
In the United States, an enrolled agent is employed to represent the taxpayer before the Internal Revenue Service, the US equivalent to the Australian Taxation Office. Here in Australia, that might not seem like very useful information since their training and education means nothing in the face of the Australian tax system, but it's still useful to know about their existence for two reasons. If you're a business owner that operates exclusively here in Australia, then you should never have to hear the term 'enrolled agent' again, though if you're interested in working in accounting, it might be a good job to consider. Australian companies and business with US interests or US nationals with Australian interests can benefit from local, Australian enrolled agents to help them minimise their tax obligations in the US, making it lucrative work.

You've Got To Spend Money To Make Money
We've all heard it, but that doesn't make it any less true. An expense is simply a cost associated with doing business, and almost every business and company will have at least one type of expense in a year. It might be the cost of fuel for your car, your home-office software, or your employees salary. Whatever the costs may be, these expenses are, in some cases, considered to be tax deductable, so it's important that you keep an accurate record of your expenses over the year.

What Will You Leave Behind?
Once a company has sold off all of its assets and negated all of it's debt, what is left is considered to be equity. This value exists conceptually before a company is shut down and liquidated, of course, and can be compromised of both liquid assets, such as cash, and assets, including buildings, land, and patents. When your company is liquidated and dissolved, this equity is distributed amongst any stakeholders, be they shareholders or investment partners.

Subscriptions Keep The World Spinning
In the business world, it's important to make sure you understand how money is flowing through your business to make sure you're not taken off guard by an unexpected cost. To make that simple, you shoulder first consider every expense that you can expect, especially those that won't change in value from month to month. These are called fixed costs, and might be something like the rent on your storefront or the insurance for your assets.

Invest In Your Own Success
When it comes to your business, trying to save pennies is only going to cost you pounds in the long run. Instead, you should consider turning to the leading professionals in the business accounting space, the M.A.S Partners, for help. To speak with our team of small business accountants in Sydney about what we can do for you, call us on (02) 9211 5000.

 

 
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