It generally doesn’t take long for business owners to get into a rhythm when managing their taxes. You might use software to make sure everything is in order and dedicate a certain amount of time each week to managing your tax affairs.
However, as technology changes and new tax rules and regulations are introduced, how you do your taxes can change with them. Stay on top of your obligations with some of these helpful tips below.
Streamline Reporting With Single Touch Payroll
Reporting your payroll information to the Australian Taxation Office (ATO) can be time-consuming, and when you’re a busy business owner with so much to do, it’s easy to let it fall by the wayside.
However, you can streamline reporting with the Australian Government initiative known as Single Touch Payroll (STP). STP uses internet cloud accounting software to help you quickly submit information to the ATO online and remove many reporting burdens you may have faced as a business owner.
It also offers several other standout benefits, such as one-click compliance, error-free payrolls, payslip access for employees, and no more EOFY summaries.
Keep Good Records
Being in the digital age means we can collect and organise our financial information much easier than ever before. However, the ease of storing records and managing our bookkeeping means there are no longer any excuses for disorder and lost records.
When ATO notices discrepancies in returns against pre-filled data, they contact business owners about their expense claims and income. Ensure you record all cash income and expenses, separate your private and business expenses, and keep valid tax invoices.
Seek Help When You Need It
Not every business owner will be comfortable managing their own taxes, and knowing that getting it wrong may have consequences can be overwhelming.
If you don’t think you understand how your business taxes work, or you’re unsure how to set up your business with accounting software, ask for help. There are plenty of sources of information online and experts in accounting to assist with this essential business task.
Claim Small Business Concessions
If you have a small business with a turnover of less than $2 million, you may be eligible for small business concessions. Not all small business owners may be aware of these, but you may be entitled to a wide range of privileges, such as:
- Pay as you go instalments
- The choice to pay GST by instalments
- Fringe benefits tax car-parking concession
- More straightforward trading stock and depreciation rules
- Annual apportionment of GST input tax credits
Claim Prepaid Expenses
Many of the expenses your business accumulates throughout the year can be prepaid. This can sometimes make it challenging for business owners to know which year to claim them in. You may be pleased to learn that whether you pay insurance, rent, memberships, or other business-related costs in advance, you can claim them in the financial year they occurred.
However, there are some exceptions to this rule. Some expenditure types can be excluded, such as amounts of less than $1,000, salary and wage payments under a service contract, and amounts to be acquired by a court order or law of the state, territory, or Commonwealth
Even the savviest business owners with several years in business can still pick up new tax tips and tricks. If you’re looking for ways to make tax season a little easier to manage, some of this information above may be worth considering.