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the fact that records are out of date and / or difficult to disentangle.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.
For more information visit website www.numberspro.com.au
