bookkeeping and accounting

Bookkeeping vs Accounting

Bookkeeping and accounting are inevitable for any business in operation. These processes help the firm to evaluate its worth and take informed decisions. The two terms have a subtle difference, but it is necessary to understand them. Read more about Bookkeeping vs Accounting.


Bookkeeping is the process of recording the financial transactions of a business in a systematic manner. It concentrates on the daily financial transactions of a business, which are entered into the original book of accounts. In simple terms, bookkeeping is the record of daily payments and expenses in a categorised manner.

Bookkeeping helps to maintain the accuracy of the accounting process. Proper bookkeeping leads the path to accurate accounting. Thus, bookkeeping ensures that the financial transactions are accurately recorded and is always updated.

Functions of a bookkeeper

A bookkeeper is a key person who is responsible for managing and recording the financial transactions of a business. 

Iconz Business Solutions provides the best bookkeeping services with cutting-edge technology. Our cloud bookkeeping services enable the owners to have access to their data and accountants at any time.

The crucial functions of a bookkeeper are:

  • Reconciliation of accounts

Reconciliation is done to cross-check that two sets of records are in agreement. It helps to identify any discrepancies that can arise during financial transactions. Reconciliation can be done daily, monthly, or annually.

  • Invoicing

Bookkeepers are required to attend to the billings and invoices. This basically includes the accounts receivable and accounts payable. Bookkeepers send invoices and do a follow up to get it paid. They also make sure that invoices from suppliers are accurate and paid on time.

  • Organizing transactions

Bookkeepers manage all the transactions that are done through the account.  These transactions are then categorised in order to maintain an organized structure. Bookkeepers are responsible for maintaining the accuracy of these categorised transactions. Read more about Bookkeeping vs Accounting.

Importance of bookkeeping

Business owners benefit from bookkeeping. It enables organisations to successfully manage cash flows, plan future strategies, and stay informed about their business operations. It also helps to comply with the criteria set by the federal and local taxing authorities. In other words, once the business starts its operations, maintaining proper records becomes a crucial task.

Bookkeeping is not something that can be overlooked, and the reasons that cite the importance of bookkeeping are as follows:

  • Make routine business decisions

When bookkeeping is done in an accurate manner, it helps to retrieve the accounting information easily. This can facilitate routine decisions to be taken more conveniently. 

  • Attain business targets

Every business aims to evolve with time. But poorly managed financial records can slow down the growth of a business. If there is no accurate data and figures to analyse, it will be difficult to achieve the previously set goals. No business can go forward by making simple guesses. Maintaining the records in a regular and proper manner will help to stay focused on the track of the business. This will, in turn, help to achieve the business targets in a smooth way. Read more about Bookkeeping vs Accounting.

  • Keep organised records

A business is required to make crucial decisions based on financial records. Proper bookkeeping helps to find crucial data on time and can aid in decision making. For the smooth running of the business, it is very important to maintain the records in an organized manner. This helps to avoid any confusion that may arise in between and also reduces even the smallest errors that may occur.

  • Reporting to investors

Investors play a very important role in making crucial decisions. They are concerned with the utilization of the money invested in the business. They must be intimidated by the potential growth of the business as well as the profitability of the business. These aspects can be sorted out with an accurately managed financial record. The performance of the business and the incurred profits can be readily evaluated from the records. Thus, bookkeeping can ease out the inconveniences involved in reporting the outcome to the investors.

  • Records source of transactions

Bookkeeping records the sources of all financial transactions involved in the business. It also keeps track of the payments, receipts, purchases, and sales and keeps records of transactions. This provides a basis for preparing the financial statements for the business.

Iconz Business Solutions provides the best bookkeeping services in NSW. The professional and dedicated team at Iconz provides you with all the guidance required and lessens your burden. Read more about Bookkeeping vs Accounting.

You may also like to read:

1. How to Choose the Right Bookkeeping System for Your Business (Single-Entry and Double-Entry)?

2. 7 Best Practices While Preparing a Bank Reconciliation Statement

3. A Complete Guide to Family Tax Benefit

4. How Much Tax Do I Pay? All Your Questions Answered!

5. What is Accrual in Accounting?


Accounting is the process of interpreting, analysing, and reporting the financial transactions of a business. Bookkeeping acts as a basis for the accounting process. 

Accounting involves the preparation of financial statements, which are the precise summary of financial transactions. It indicates the company’s financial position and cash flows.

Personal accountants and accounting services at Iconz Business Solutions anticipate the broader picture. We help you to identify solutions that other organisations might overlook.

What is included in accounting?

Accounting combines the financial information into an understandable form for all the company stakeholders. The stakeholders will be able to assess the performance of the business from these accurately managed financial statements. So the basic tasks that come under accounting are:

  • Prepare Financial Statements

The financial statements are prepared while the budget is prepared. It can also be created in order to gather funds from investors. Accountants are entrusted with the responsibility of creating financial statements on a regular basis. These financial statements include the balance sheet, cash flow statement, and also income statement.

  • Financial Planning

Accounting helps to look into the broader scenario of financial planning required for the business. Accountants can provide specific advice related to reducing unwanted expenses. Accountants can also give information regarding the ways in which revenue can be increased and be more profitable. In a broader aspect, accountants can also give the advice to expand the business.

  • Revenue & Cost Analysis

Accountants take inferences by observing the financial records. A firm’s profit or loss is basically dependent on its costs and revenue. Accountants perform the analysis so as to understand the firm’s performance. Accountants also use the help of historical data to determine the trends in business activities.

  • Tax Compliance

Businesses are required to file their tax returns at the end of the tax year. Tax reports are prepared to assess the tax payable to the authorities. These reports are prepared with the help of financial records. Accountants help to calculate the exact amount to be paid with ease. Failure to keep the tax affairs updated will lead to levying hefty fines. Accounting plays a critical role in order to avoid such setbacks.

  • Evaluate Business Development

Businesses are always started with the aim to grow. The process of accounting helps to understand the growth occurring in the business. This is done by analysing the financial records. The performance of the business can be evaluated on the basis of comparing the profit and growth aspects of the business. This can help to plan future strategies depending on the areas of progress the business makes.

Major differences between bookkeeping and accounting

  • Bookkeeping provides the basic input for accounting; thereby, it acts as a foundation for accounting. Bookkeeping is only a segment of the larger process of accounting. 
  • The level of complexity involved in bookkeeping is comparatively less, while the process of accounting involves a high level of complexity.
  • The major purpose of bookkeeping is to maintain financial transactions in a systematic and chronological manner. On the other hand, accounting is done to understand the financial situation of the business and to communicate the insights to relevant parties.
  • Business management cannot make crucial decisions based on the bookkeeping data provided. But crucial and significant business decisions can be taken by the management from the accounting data.
  • The preparation of financial statements is not usually a part of the bookkeeping process. Financial statements are prepared during the accounting process.
  • The process of bookkeeping is done in accordance with the accounting concepts, whereas the accounting procedures used for interpreting the financial reports can vary from one firm to another.
  • Bookkeeping is a clerical job by nature. So, it is not necessary for bookkeepers to possess any particular skill set. But accountants, on the other hand, should possess knowledge of various accounting practices and also analytical skills.
  • The major tools used in bookkeeping are journals and ledgers. But the tools used in accounting are profit and loss, balance sheet, and cash flow statement.
  • Bookkeeping has internal users like the managers, employees and owners. But accounting has not only internal users but also users external to the business entity.

Activities Involved

The two careers are similar, and accountants and bookkeepers often work side by side. These jobs demand their own skills and attributes. 

Bookkeeping involves providing keen attention to a lot of specific details. The records must be kept in a systematic manner so as to provide accurate data for accounting. Meanwhile, accountants use the input provided by the bookkeeper to prepare the financial statements. The accountant needs to look into the broader aspects of the decision-making process.

Though bookkeeping and accounting are often used interchangeably, the activities conducted by them have their own differences. Basic bookkeeping activities involve:

  • Preparation and sending of invoices to customers and also to suppliers
  • Recording the payment received from the customers
  • Record, processing and payment of invoices from suppliers
  • Recording and monitoring inventory changes
  • Processing payroll and petty-cash transactions
  • Categorising credit cards and other related expenses
  • Monitoring late payments and sending reminders to the impacted parties

Basic accounting activities involve:

  • Creation and management of the Chart of Accounts
  • Creating and maintaining financial statements
  • Record the accrued revenues and deferred revenues and expenses
  • Creating a budget and making comparisons against actual expenses incurred
  • Determining the estimated tax and preparing tax documents accordingly
  • Identifying potential profit-maximizing opportunities

Know Your Requirements

The business can vary in terms of many aspects. Both bookkeepers and accountants have equal and important responsibilities to play irrespective of the nature of the business. Understanding the subtle differences between the functions will help to decide what best suits your business. Knowing your business requirements and taking informed decisions will always keep the business on the correct path of development. 

Small business owners can do their own bookkeeping tasks on a daily, monthly, or quarterly basis. This can be then given to an accountant for further action. But large business owners employ a professional bookkeeper and will also have an accounting department.

So, prior to hiring, it is important to know your business and its requirements. The development of the business must also be taken into account. Iconz Business Solutions has a proven track record of leading several companies to success with our dedicated team for accounting and bookkeeping services.

There are a few instances that can help to decide to go for professional help with the business:

  • Complex taxes: If the taxes are too difficult to manage by yourself and you are burdened with multiple income channels, several deductions, or other considerations, it is high time to seek the help of a professional accountant. An accountant can narrow down the burden of workload and help you stay on top of other important functions.
  • Accumulating accounting tasks: If the practice has been of spending too much time on accounting tasks and no time to manage the business, then things might go out of hand. It will be more assuring if the accounting tasks can be entrusted to an accountant, and you can concentrate more on developing your business entity.
  • Growth in business: The initial accounting tasks while starting the business will be manageable. But once the business is in the growth phase, managing the accounts can be a tedious task. This can be the right time to hire a bookkeeper, and gradually, with the development of business, an accountant can also be hired.


When looking for a certified professional, it is important to know your requirements. First, it must be decided whether to hire an independent consultant, consult a firm, or hire a full-time employee. Prior to hiring an independent bookkeeper or accountant, it is important to verify the credentials of the individual. Perform initial screening tests and check the certifications provided by the applicants. We at Iconz Business Solutions provide the services that can help to grow your business and stay stress-free from all other business-related worries.

accrual in accounting

What is Accrual in Accounting?

An accrual is a current-period expenditure for which a supplier invoice has not yet been received or revenue that has not yet been invoiced. An accrual is often formed with the intention of recognising a cost on the income statement. What effect does such an accrual have on the balance sheet, which contains assets, liabilities, and equity items?

Accrual-based accounting is when transactions are recorded in the books of accounts as they happen, even if payment for that good or service has not yet been received or paid for. This technique is better suited for determining the financial health of an organisation.

You debit the expenditure account and credit the accumulated liability account when you record an accrual for an expense (which appears on the balance sheet). Accumulated expenditure is classed as a current liability since it is normally just for a short period of time (for example, recording an expense for a supplier invoice that will most likely arrive next month). As a result, when you accrue an expense, it appears on the balance sheet in the current liabilities section.

What is accounting’s accrual basis?

The accrual foundation of accounting is based on the principle of recording revenues and costs as they are incurred. Usage of this technique has an impact on the balance sheet, since receivables and payables may be reported even if there is no accompanying cash receipt or payment.

Both Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards support the accrual foundation of accounting (IFRS). Both of these accounting frameworks offer guidance on how to account for revenue and expenditure transactions when there are no cash receipts or payments to trigger the recording of a transaction under the cash foundation of accounting.

Accrual Accounting: An Overview

To comprehend accrual accounting, we must first comprehend what we mean by the term “accrual.” Accrual is a term used in accounting to describe an entry made in the books of accounts that record income or costs paid without the exchange of cash.

Accrual accounting is generally used in firms where there are a lot of credit transactions or where products and services are sold on credit, meaning there was no cash exchange.

Let’s look at an example to better grasp accrual accounting. Assume you’re a company called XYZ Pvt. Ltd., and you keep your books using accrual accounting. Any revenue or income made through sales, as well as any costs spent, are reported in this section.

When you offer goods or services on credit, the sale is documented in the books using the invoice created. It’s possible that you didn’t get the payment in cash at that point in time.

When you offer goods or services on credit, the sale is documented in the books using the invoice created. It’s possible that you didn’t get the payment in cash at that time. 

When the raw material is ordered, an expenditure occurs or is recorded, but not when the payment is paid to the supplier in cash or by check. The sole disadvantage of this accounting method is that you, as a business, may end up paying tax on revenues that you did not obtain (credit).

On the income statement, costs and revenues are balanced using the accrual method of accounting. It aids in providing a more accurate view of the company’s financial situation.

Benefits of Accounting Accrual

The accrual basis of accounting is considered by investors to be the most accurate accounting method for determining a business’s results of operations, financial condition, and cash flows since it provides more consistent reporting of revenues and costs over time. It supports the matching principle, which requires revenues and all related costs to be reported in the same reporting period. This allows for a complete picture of the profits and losses linked with specific business activities to be seen in a single period.

You may also like to read:

1. How to Choose the Right Bookkeeping System for Your Business

27 Best Practices While Preparing a Bank Reconciliation Statement

3. A Complete Guide to Family Tax Benefit

4. How Much Tax Do I Pay? All Your Questions Answered!

5. Bookkeeping vs Accounting: A Simple Guide


Drawbacks of Accrual Accounting 

The accrual method of accounting has a key flaw in that it might show the appearance of profits even though the related cash inflows have not yet occurred. As a result, an apparently profitable organisation may become cash-strapped and, as a result, go bankrupt, notwithstanding its claimed profitability. As a result, you should pay close attention to a business’s statement of cash flows, which shows the inflows and outflows of cash.

When Should the Accrual Basis of Accounting Be Avoided?

As accrual accounting necessitates a certain level of accounting competence, a small firm may choose to avoid utilising the accrual foundation of accounting. In addition, under the cash basis of accounting, a small business owner may choose to manipulate the timing of cash inflows and withdrawals to produce a lower amount of taxable revenue, which can result in income tax payments being deferred.

Accounting on the Accrual Basis vs. Accounting on the Cash Basis

For all bigger firms, accrual-basis accounting is the typical method of recording transactions. The cash basis of accounting, in which revenues are recorded when cash is received and costs are recorded when cash is paid, is not the same as this notion. A firm that uses the accrual basis of accounting, for example, will register a sale as soon as it sends an invoice to a client, but a cash-basis company will wait until it is paid before recording the transaction. Similarly, an accrual-basis firm will record an expense as soon as it is incurred, but a cash-basis company will wait until the supplier has paid before registering the charge.

A fundamental distinction between the systems is that financial statements prepared by a company operating on a cash basis may contain deceptive results. This is because the company may wait until the end of the reporting period to pay its suppliers, resulting in a larger cash balance (and hence better financial health) than is actually the case. This implies that someone may mistakenly believe that the organization’s finances are strong when they are not. In the opposite case, a corporation may fail to register sales because it has not yet received the cash connected with them, resulting in reduced reported sales and profits, giving the appearance that the company is struggling while, in reality, it is successful.

Another distinction between the two approaches is that the cash basis of accounting is simpler to use. It doesn’t require accruals, so it’s easy to use even if you don’t know anything about accounting. The accrual foundation of accounting, on the other hand, necessitates a working grasp of accounting concepts.

Best Practices in Accrual Accounting

When using the accrual basis of accounting to record transactions, be sure to clearly document the cause of each adjustment item. This is required so that, in the future, someone evaluating the explanation for the entry will have a better understanding of why it was created. This is especially true when the evaluating party is a company’s external auditor.

Setting up correct entries to be automatically reversed in the next period is another great practice. This clears the entries from the accounting system, removing the possibility of stumbling upon errant entries in the accounting records during the year-end closing process and having to reverse them.

Different Types of Accrual Accounts

There are various accounts that are utilised on the accrual method of accounting but are not used on a cash basis. Accounts receivable, payable, accumulated revenue, and accrued liabilities are examples of these accounts. Accounts receivable refers to sums invoiced to customers for which payment has yet to be received, whereas accounts payable refers to amounts billed by suppliers for which payment has yet to be received. The accumulated revenue account comprises sums that have been generated but have not yet been invoiced to consumers. The accumulated liabilities account comprises funds that have not yet been billed by suppliers but for which products or services have already been supplied.

What is Modified Accrual Accounting, and how does it work?

Some aspects of cash basis and accrual basis accounting are combined in modified accrual accounting. Within a government’s financial statements, it’s supposed to indicate the flow of current financial resources. The Government Accounting Standards Board has established this method. Modified accrual accounting has two main characteristics. First and foremost, revenues are recognised only when they are both available and observable. When income is available to meet current expenditures due within the next 60 days, it is quantifiable, and when the cash flows connected with it can be accurately predicted, it is referred to as revenue availability. Second, expenditures are recorded only once liabilities are incurred. Inventory and prepaid products are instantly recorded as expenditures when acquired, and assets are charged as an expense when purchased, comparable to accrual accounting (there is no depreciation expense).

Accrual Account Entries

Accrual accounting entries are journal entries that show how much money a firm has made and how much it has spent. Accountants make essential modifications to their company’s financial accounts before they are issued, known as accruals. Revenues and assets, such as receiving payments and inventory, as well as costs, losses, and liabilities, such as outgoing payments, vacation time, sick leave, and taxes, are examples of these.

Accountants use accrual accounting principles to input, amend, and track both costs and revenues while recording accruals. The accrued assets should be shown on the financial statements balance sheet and income statement, and the recording process should be double entry. In an accrual basis accounting system, accountants make all entries twice, or as reversing entries.

Revenue, accounts payable, liabilities, non-cash-based assets, goodwill, future tax obligations, and future interest expenditures are the most common accounts influenced by accrual accounting. One thing to keep in mind is that when accrual accounting procedures are used, accounts receivable and payable only appear on the balance sheet. Furthermore, especially in large firms, it is critical to establish a procedure for employees to submit invoices or other documents that serve as the foundation for tracking accruals and recognising costs on a timely basis. This ensures that the firm has the most up-to-date information and that the financial statements for the reporting period are presented fairly.

What Is the Importance of Accrual Accounting?

Accrual accounting provides businesses with a complete financial picture at any given time. Accrual-based financial statements show relevant work and activities without the hassle of matching invoices, bills, and cash in the same month or period.

The main advantage of accrual accounting is that it automatically lines up costs and revenues, allowing a company to account for both expenses and revenues at a particular time. Companies that only record transactions when money changes hands do not have an accurate picture of their ongoing costs or the amount of money owed to them at any given moment. They may make company decisions based on current, reliable financial data with accrual accounting.


When we hear the word “accrual accounting,” most of us want to run for the hills. That’s why we’ve simplified things for you. The most commonly asked questions (FAQs) about accrual accounting, as well as the short, straightforward answers you’re looking for, are included here. Right now, you may be putting your accounting strategies into action.

  1. What documents do I need to finish accrual reversals?

To complete reverse accruals, certain firms require paperwork. Others have accounting software that can do reversals automatically.

  1. Is it necessary for me to hire an accountant to do accrual accounting?

No. Accrual accounting may be used by any company.

  1. If I go to accrual accounting, do I still need to use fancy accounting software?

No, you have a variety of possibilities, especially if you wish to employ software, which ranges from simple to complicated. You can also choose to use no software at all.

  1. Is accrual basis accounting right for a startup?

This is contingent on whether the startup intends to operate independently for the long term or seek public market admission. Use accrual accounting to acquire a complete view of the firm.

  1. In basic terms, what is an accrual?

Accruals are revenues or costs incurred that have an influence on a company’s net income on the income statement, even if no money has changed hands. Because accruals contain non-cash assets and liabilities, they have an impact on the balance sheet.

  1. What is the definition of a monthly accrual?

Monthly accruals are costs or income that have yet to be paid or received by a corporation.

  1. Is there a distinction between cash and accrual accounting?

The most significant distinction between accrual and cash basis accounting is the timing of revenue and cost recognition. The cash approach recognises income and costs more quickly, whereas the accrual method focuses on future revenue and expenses.

Iconz Business Solutions takes care of all of your professional accounting, tax planning, tax strategy, and financial accounting needs. Whether you’re hiring professional accountants or consultants for the first time, or you’ve been in the company for a long time but need a reliable accountant, IconBiz is ready to help. Their financial accounting services include transactions that are carefully documented, summarised, analysed, and reported. Contact Iconz Business Solutions for more information.

tax agent near me

How Much Tax Do I Pay? All Your Questions Answered!

Tax is an eminent part of government revenue and it is necessary to pay your taxes on time. You may have several questions regarding the different tax slabs as well as the latest updates in the Australian Taxation Law. Taxation laws are subject to change and it is up to us to keep note of these changes. Missing out on paying your taxes could sum up to a huge fine and you may end up paying a lot of money as a penalty.

Tax Slabs for Various Individuals 2021-2022

Here are the tax slabs for diverse income levels for the Residents of Australia

  • From $0 to $18,200 – Nil
  • From $18,201 to $45,000 – 19 cents for every $1 above $18,200
  • From $45,001 to $120,000 – $5,092 + 32.5 cents for every $1 above $45,000
  • From $120,001 to $180,000 – $29,467 + 37 cents for every $1 above $120,000
  • From $180,001 and Above – $51,667 + 45 cents for every $1 above $180,000

Here are the tax slabs for diverse income levels for the Foreign Residents of Australia

  • From $0 to $120,000 – 32.5 cents for every $1
  • From $120,001 – $180,000 – $39,000 + 37 cents for every $1 above $120,000
  • From $180,001 and Above – $61,200 + 45 cents for every $1 above $180,000

Here are the tax slabs for diverse income levels for the Working Holiday Maker of Australia

  • From $0 to $45,000 – 15%
  • From $45,001 to $120,000 – $6,750 + 32.5 cents for every $1 above $45,000
  • From $120,001 to $180,000 – $31,125 + 37 cents for every $1 above $120,000
  • $180,001 and above – $53,325 + 45 cents for every $1 above $180,000

Here are the tax slabs for diverse income levels for children of Australia

If you are aged below 18 years, you are considered as a child and would have to pay tax under the following circumstances. (Excepted Person)

  • Disabled Physically or Mentally
  • Permitted a double orphan pension
  • Finished your full-time studies and working on a full-time basis

For children, some of your income can be taxed at a higher rate than those of adults

Tax regulations are getting complex with time and it is mandatory for a business or an individual to maintain a clean slate. Tax officers keep monitoring your defaults on the payments so it is the duty of the business or person to keep track as well. 

You may also like to read:

Do you get tax deductions when you get divorced?

Under the Australian Taxation Law, one cannot claim a deduction for the maintenance of an ex-wife. 

Invalid and Invalid Carer Tax Offset

If your husband/wife is unfit o work because they are an invalid or they care for an invalid, you are entitled to the Invalid or Invalid Carer Tax Offset. The person however must be receiving a Government disability payment to qualify as an Invalid. On both of your returns, you will be required to disclose information about the other partner so that any entitlements you may have to certain family tax benefits can be calculated correctly.

Most common tax returns errors

  • Failure to declare income earned abroad

Sometimes we come across people who move out in search of jobs or businesses. They often forget the fact that they need to pay the Australian taxes as well. Any citizen of Australia, no matter where he relocates, is liable to pay taxes according to Australian law. Consult a good tax agent to keep yourself away from tax troubles. You are expected to pay your Australian taxes even if you are living and working overseas or abroad. You are also expected to declare all your overseas income as such or they would find it out either way, which could mean that you could be penalized for the same. It is advised to consult a good tax agent to calculate your income earned abroad because default or mistake in the payment of the taxes can lead to a hefty penalty.

Here are the kinds of income earned abroad

  • Capital gains on overseas assets
  • Income from Business
  • Income from Investment 
  • Income from employment
  • Pensions and Annuities


  • Over-claiming of expenses

For holiday rental properties – Many Australian citizens own a rental or holiday rental property which can be claimed for a claim only under certain circumstances. For example, claims can be requested only for actual renters that rent your property. Sometimes you let your friends or family stay rent-free on certain occasions. You cannot claim tax expenses for such scenarios. Such occupancy periods should be removed when you calculate your overall expenses.

In the case of joint ownership of the property, the tax shall be calculated on the basis of the percentage of ownership of the property. For example, if you own 60% of the property and your partner owns 40% of the property, you are expected to pay tax on the 60% portion while your partner pays the tax for the 40% portion. 

You might also end up in scenarios like, during the COVID-19 crisis, many of the property renters received lodgers only during certain times of the year. In such cases, your tax deductions can be adjusted accordingly with the help of a reliable tax agent and you will be taxed only during the period when it was available for rent 

For residential property – You are required to list out all your earned income from residential property every financial year. This can also include the period of the year during which the property was available for rent. Although one cannot claim tax deductions for the properties that were given out for rent for the first time. Also if you have incurred costs for renovation and capital works, you can claim them every year for forty years at the rate of 2.5% of the total cost incurred.

No Purchasing Proof 

Sometimes you may come across situations where you don’t make a receipt for work-related expenses. Keeping a receipt for all your work items should be made a habit as the ATO does not entertain the loss of proof for these claimable expenses. According to sources, you may get a maximum of $300 worth of these expenses without a receipt. Even then it is advised to keep receipt of these expenses as there is no free tax deduction.

What happens if you claim more deductions for a bigger tax refund?

If you are caught claiming more refunds or deductions on your taxes, you will be asked to refund some of the money based on the amount claimed. They can even claim all of the refunds in case there are some issues detected. One must have solid proof of the source of income as well as expenses for which the tax has been deducted.

How can you maintain a good tax return?

  • Keep Track of your Purchases, Investments, Expenses and Earnings. 

This isn’t a tedious job at all. All you need to do is note down wherever you could possibly end up paying taxes and keep a receipt for verification.

  • Consult a good Tax Agent

A tax agent fits well within your budget. One can get a bigger tax return if managed efficiently. You can get in touch with Iconz Tax Agents for the best tax return solutions. 

  • Private Cover

A private cover get you refunds on your taxes provided you are earning an average or lower income. But this decision is solely based on the person as the cover can cost a bit out of your pocket. This is not advisable for higher income levels as they may not be much benefitted in terms of tax deductions.

  • Charity Donations

All charitable donations are tax-deductible under the Australian Taxation Law. You can claim a deduction for every donation made above $2. This is a great opportunity as charity is necessary to run certain private organizations that support various kinds of people with disabilities and challenges. Just remember to keep a receipt of these donations as they are necessary to claim a deduction. The amount spent on charity will be deducted from your total taxable income.


How can Iconz Business Solutions help you handle your taxes?

Iconzbiz has been in the accounting and taxation industry for over a decade. We have been handling the taxes of various businesses as well as individuals who had been facing several issues and ending up paying more tax while forgetting to claim the returns that they were entitled to. Icons Business Solutions helps you maximize your returns and cash flow through minimal expenditure. Our expert tax agents are well versed in the tax regulations of Australia and are eager to help you reduce the burdens and tediousness of your tax calculations. 

Do you have questions regarding the services that we extend such as tax preparation in NSW? Or would you prefer a personalised tax preparation service that fulfils your requirements? Get in touch with our tax accountants and tax agents to make an appointment.