Top Tax Tips for Small Business

June 30 is just weeks away and whether you use an accountant or not, there are still a number of things you should be doing to get yourself prepped and ready for Tax Time. These 4 tax tips are a great start.

 

Tax Tip #1 – Perform a Business Health Check

The end of the financial year is a great time to check in on the health of your business. 

By checking your systems and record keeping you can make sure that you’re in a good position to efficiently and accurately complete your return, even before you step foot in your accountant’s office. 

There are a number of informative tools available to help you, including the ATO’s Business Viability Assessment Tool .

Tax Tip #2 – Record Keeping

Remaining mindful of your finances all year round is ideal, but the reality is we all get busy and keeping immaculate records is time consuming. 

Now is a great time to switch to electronic record keeping, you haven’t already. If you’re a bit old school and still like to keep paper records – make sure you are super organised. 

There are many great products available to help keep your records protected and organised, from folders to files and specialised cabinets. Consider how much paperwork you have on hand, how much you’re likely to accrue during the next financial year and choose the most appropriate system for your needs. An organised office can make everything run more smoothly, not just tax time! 

Tax Tip #3 – Be Deduction Savvy

Every year, changes are made to the items you can and cannot deduct and staying on top of these changes is the key to healthy tax savings. 

David Porter, Chartered Accounant for Infinite Accounting Solutions, says that other than personal income tax cuts, the most significant announcement to benefit businesses is the extension until 30th June 2019 of the $20,000 instant asset write-off. 

“The continued extension of the $20,000 instant asset write-off for businesses with aggregate turnover less than $10M is a great opportunity for small-medium businesses to invest in assets to help run, or grow their businesses, and get an upfront tax deduction for their investment”. 

This year the deductions to pay special attention to are:

▪  $20k Instant Asset Write Off

▪  Prepaid Expenses
   Refer to the ATO’s Deductions for Prepaid Expenses 2018 as it pertains to your business

▪  Business Account & Loan Expenses
    Certainly not a new one, one of the most commonly forgotten and costly deductions

 

Tax Tip #4 – Make Smart Purchases

Now is not the time to start flippantly spending your cash just for the deductions, but it is a great time to think about your business and its needs and consider what purchases will be an asset to your business. 

What will increase productivity? Or reduce costs in the long run? 

If your technology is getting a little old, take this opportunity to make some upgrades. There are great EOFY deals available and huge savings to be had, so now is the time to jump on it. 

With a few smart moves and a little preparation, tax time doesn’t have to be a headache, and you may find you can actually save some money and improve the day to day running costs of your business.

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