Working on contract accounting jobs can have two different facets depending on the type of work you can do, some people just make entries into relevant accounts and some people manage the complete accounting of the company. Some contract jobs in accounting last round the year and in some other cases you are required to work only during the tax period.
Contract accounting jobs can come from any source. How frequently you will receive account jobs from companies varies on their requirement and your skills. If you are good at work and can help company save tax money then there are more chances that the work is given to you.
Bookkeeping, for laymen would mean maintaining record of company’s incomes and expenses, but only an accountant can explain the depth of the subject; the number of accounts you need to maintain, number of entries you need to make for each and every transaction, maintain record of sources of income, assets bought and their depreciation, suggest investment in different funds to help companies save money in taxes and many other things.
By now you would have known that accounting is much more complicated and it requires lot of skills to take care of all aspects of accounting. Here are a few tips to help all those in contract accounting jobs to help companies save money:
• Vehicles used for business purpose can be appropriated either as actual expense incurred or based on standard mileage rate method.
• Fees paid for payroll services, bookkeeping, tax, legal issues and other company requirements is completely exempt from tax.
• Business losses exceeding owner’s personal income for a financial year are considered for tax exemption. Losses of the previous year can be considered for exemption in coming years.
• 50% of travel and entertainment expenses incurred for company purpose are also exempt under certain circumstances. But expenses incurred for the family while on business trips are not exempt.
• Other tax deductible items include interest on certain investments, loan instalments, price of new equipment purchased and others.
Whenever you get into contract accounting jobs it is expected of you that you help the company with its taxes. Hence you also need to keep yourself updated with the latest happenings in the field.
