Taxes are one of the major concerns facing small, growing businesses. You should always ensure that you meet all the requirements of ATO, and at the same time grab opportunities when you can reduce tax.
Note important deadlines
Same as with individual tax returns, ATO has also deadlines for submission of businesses’ activity statements, FBT reports, PAYG withholding reports, GST returns, superannuation and income tax returns.
Organise your records well
Organising your records well is an essential aspect to business success. Invoices, cash register, banking records, receipts, creditors’ invoices, salary records, cheque butts and cash books are some of the business records that you need to carefully keep. You should also maintain an asset register to record assets that you bought.
You may make use of available software packages in keeping your business records however, you need to take note that you have to keep it for five years. In determining your income tax liability, working papers is a good tool for preparation of correct accounting records.
Deductions and charitable contributions
Rent, office expense, employees’ salaries, advertising cost, and depreciation of assets are only some of the allowable tax deductions. Expenses, like eating with a client or driving for him, are sometimes forgotten but are tax deductions as well.
Your donations or charitable contributions are most of the time deductible, however, you should ensure that these are charities endorsed by ATO so you can claim deductions.
Regularly ask assistance from your Accountant
Promptly provide your accountant with your financial records and let him help you with your tax planning. By doing this, you will be able to submit your tax returns on time and without delays.
Take note of the important lodgment dates for businesses which can be found on ATO’s website.
Schedule an appointment with your accountant to discuss tax planning. Make it a priority!
Email us at email@example.com or call 07 3668 0646 for all your accounting needs, bookkeeping, tax returns and compliance, business valuation and business sales. Support and assistance for your small business needs.
James HuyVuong is a CPA and the owner of Your Accounting Partners. Partnering with businesses from start to scale thru to sale.