It’s getting to that time of year again – the phone is ringing more, paperwork is piling up fast and all you can think about is stocktake sales. That’s right, it’s almost the end of the financial year. For small and medium businesses in Australia this means stress, paperwork and trying to understand what tax rules apply for you. (Don’t worry, everyone else is Googling what deductions they can claim too!)
So we’ve put together a few simple tips for you to help you get your business in order and ready to file on time and get the best returns.
1. Claim Those Deductions
Making claims for your business expenses is a given – but there’s a lot that you can claim that you might not have even thought of before. Things like rent, utilities, training courses and advice are all tax deductible expenses.
Keep a spreadsheet of all your expenses INCLUDING how they relate to your bottom line.
If you can, it may be beneficial to pre-pay as much as you can for the year ahead. If you can pay rent in advance you should do so before July 1 so that it can count towards your 2018/19 tax deductions. But remember, in most cases you have to have spent the money already – you can’t claim deductions if you haven’t finished paying something off.
2. Get Your Records In Order
Keeping strong and sensible records is key to getting your tax in on time and saving as much as you can on your tax bill.
It’s never too late to get your records in order and this is something that you should be working on monthly, or even weekly. When it comes to presenting your information to the taxman, having detailed and organised records can really get you ahead. It means you’ll be less stressed and won’t miss out on deductions from a faded receipt.
Your records for EOFY tax returns should include:
- Sales receipts
- Expense receipts
- Bank and credit card statements
- Employee records including wages, super, tax declarations
- Vehicle records
- Asset purchases
You can keep your records electronically or on paper, but they need to be easily retrieved and up to date. As accountants, we want to be able to claim as much as possible and make that return as large as possible for you to; keeping good receipts is a step in the right direction towards achieving this.
Did You Know?
The Tax Office can request verification of any transactions or assets that you’ve claimed. If you can’t provide supporting records you may find yourself in hot water and having to pay more!
3. Keep Up To Date With Tax and Government Changes
As governments and legislation changes, so do Australia’s company tax rates and rules. As a business owner, it’s up to you to keep up to date with any changes that may affect your tax returns. For example, changes have recently been applied for small businesses that are registered for GST and import low-value goods for use in Australia. By providing your offshore supplier with your ABN, you may not need to pay GST.
Single Touch Payroll is now being rolled out to all businesses – so you need to make sure that you’re accounting systems are in place to begin reporting data after 1 July 2019 if they’re not already.
So you can see that tax changes are happening all the time for small and medium businesses – and it’s your job to stay on top of everything! “I didn’t know I was supposed to” is not an excuse that the ATO will accept.
4. Hire a Professional Tax Accountant
The easiest way to ensure you’re filing everything you need whilst claiming everything you’re entitled to is to hire a professional. Take the stress out of the EOFY with a professional business accountant who can keep you compliant with all current ATO regulations.
At Ignite Accounting, our team of business accountants in Brisbane know the current and pending legislation back to front – so if you’re confused by such things as STP, CGT or the recently increased $30,000 Instant Asset Write-Offs, the best step for you to take is to get in touch with us.
Avoid costly and time-consuming errors in your tax returns with a professional tax accountant for your business. With over two decades of experience in Brisbane’s Southside, you can be sure you’re in the best hands.
Unlock opportunities and create real value for your business with Ignite Accounting today. Call us on 07 3808 5144 or Get in Touch online to book your FREE initial consultation.
