Plans For Tax Time In 2021

The year flies by and before you know it, it will be time to prepare for your tax return. Small businesses contribute more than $ 380 billion to the economy each year and are a big part of supporting Australia's economic growth. We know running a business can be stressful and difficult, so we want to help you prepare for 2021 tax time.

Make sure your records are up to date

One of the biggest stressors when it comes to tax time is the fact that records are out of date and / or difficult to disentangle. You want to make sure your records are consistently up to date so that managing tax time is easy. Plus, the benefits of this extend beyond tax time - when your data is up to date, it's easier to file your tax returns, manage your cash flow, and have a broad understanding of exactly how your business functions.

Use a data tracking app or online tool to make sales and expense tracking easy

Have a day or time slot that you go through each week and make sure your expenses are up to date

Be thorough and consistent when it comes to keeping your records

Make sure you understand small business concessions

There are plenty of tax breaks available to small businesses that can help you out in the field of taxation. Certain rules regarding stock trading may mean that you don't have to take inventory, for example, while other concessions allow you to claim immediate deductions for expenses such as start-up costs and legal / accounting advice. Understanding these concessions will make it a lot easier to claim for them.

Do you use simple depreciation rules? You can claim the $ 20,000 direct asset write-off for your business as long as your purchase and installation of the asset costs less than $ 20,000 by the 30th of June 2021.

Visit Also: BAS Agent Services

Check out the ATO information guide to find out what else you can do as a concession

Divide your deductions

When running a small business, there are many things that can be claimed as a deduction. It could be things like business travel expenses, business expenses for home use, or the expenses associated with your employees. Make sure you understand (and record) your deductions before tax time.

Make sure you have spent the money on your business

If the item or service you purchased has a business and private purpose, remember that you can only claim the business portion

Keep records of all your purchases

Sort GST / BAS

If you are a GST registered business, please ensure that you have settled your GST payable and have claimed any input tax credits for eligible GST purchases. Your BAS should be up to date and it is a good idea to start planning your business tax returns sooner rather than later. Working with your accountant is a good place to start; make sure to check in with them regularly and find out what you need to know.

Make good friends with your accountant - they can arrange for your tax obligations to be arranged ahead of time

Work with cloud-based software such as Xero, MYOB or other recommended software to facilitate accounting

Get professional help from the start

We are a business accounting services provider based in Brisbane and we are committed to successfully managing your business accounts. We keep the lines of communication open and quickly remind you if you ever need anything completed or updated. We have more than 20 years of experience in administration and 18 years of experience in accounting. You can trust us to provide you with exceptional service.

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