Going from an individual return to creating a partnership will add an additional return, but could maximise profits for your business. You can contact us to discuss whether a partnership or sole trader is the correct choice for your business, and we can handle partnership registration if you would like to go forward. If you're in a business partnership in Australia, you know that precise accounting practices are a necessity. That's where Ashmans Accounting steps in. We're skilled at helping businesses like yours navigate the world of partnership accounting, a crucial area where mistakes can be costly. We provide the tools and expertise you need to keep your accounting and partnership running smoothly. We offer comprehensive services tailored to your partnership's unique needs. This may include: -Filing partnership tax returns -Helping to divide and distribute profits among partners -Recording routine financial transactions -Creating and maintaining a balance sheet -Tracking and managing capital accounts

Partnering with a professional accounting service, like Ashmans Accounting, has many benefits for your partnership-based business in Australia. Let us take you through some of the key advantages: -Ease of Compliance: We navigate the complex landscape of Australian tax laws, regulations and compliance requirements for you, alleviating the stress of ensuring your business' finances are in order. -Time and Cost Savings: Instead of spending valuable time on accounting tasks, you can focus on what you do best - running your business. This not only saves time but also reduces the cost involved in hiring a full-time accounting staff. -Accurate Financial Management: Our team of experienced accountants brings precision to your financial management, ensuring minimal errors. This accuracy helps in the long run by preventing costly mistakes. -Insights and Advice: You'll gain access to professional advice, which can be invaluable in shaping a prosperous financial future for your partnership business. Whether it's tax planning, budgeting or investment advice, our seasoned -accountants have got your back. -Peace of Mind: Knowing your accounting needs are being professionally handled, you can focus more on growing your business and less on the intricacies of financial management.

Several accounting rules govern partnerships. First, there's the principle of profit and loss sharing, which stipulates that profits, losses, and any changes in equity should be proportionately distributed among partners based on their defined percentage in the partnership agreement. This holds true even when losses exceed a partner's capital account. Secondly, partnerships use the accrual method of accounting, and revenues and expenses are recognised when they are earned or incurred, not when money changes hands. Unlike corporations, partnerships don't pay income tax. Instead, profits trickle down and are taxed at personal levels as income tax—often called 'pass-through' taxation. Another key rule is that of unlimited liability, meaning all partners are personally liable for the total sum of the partnership’s financial misfortunes. Lastly, partnerships are required by law to maintain proper books of accounts. They must regularly prepare and present financial statements like any other business entity. This whole accounting process can be tedious and tricky, and that's where hiring a professional partnership accounting firm, like Ashmans Accounting, can save you time and hassle while ensuring accuracy and compliance.