It’s another End Of Financial Year (EOFY) which means bringing your business records together for ‘tax time’. Avoid undue stress by having a record of all your business expenses. The ideal way to do this is by having a separate business bank account to a personal expenses account.
Also, look out for any bad debts you may need to write off to reclaim GST.
Below are our top 3 tips to help get you started for a tax return, helping you get the best results for your business.
Streamline the Accounting Process
This is done through receipt, payment, and invoice management. Innovative businesses use accounting software that is directly linked to their business bank accounts to verify every payment made throughout the year.
It simplifies managing your monetary streams and can even give you daily revenue updates, helping you allocate resources where works for you best. This will also make extracting all your accounting information simpler so that when it’s collated for your accountant, it saves time and your money.
Know Your Tax Deductions
There is nothing more important than knowing what you can claim on your tax. Primarily due to this changing every year, and many of us working from home. Here is a small list of things you may be entitled to claim:
- A donation to a Deductible Gift Recipient (such as a listed charity, or not-for-profit).
- Any damaged or antiquated equipment in stock.
- Home-office and working-from-home expenditures.
- Car travel expenses.
- Business expenses (such as utilities, rent, and insurance).
- Business Assets (such as new office equipment).
Manage Your Superannuation Obligations
If you do not pay your employees Superannuation Guarantee on time to their nominated provider, then you will not be able to claim this as a deduction. Importantly if the last quarter of Superannuation isn’t paid by 28th July, then you will not be able to make a tax deduction on that quarter.
It is always essential to know and follow the dates of when your tax data is due so that you can always meet any tax obligations and minimise your tax expenses. Remember contacting a financial adviser or your accountant is always the best source of information for your business finances.