Ahh June. Whether you’re a small or seasoned business, this time of year again always seems to be a little bit frantic. From gathering all the necessary documents to figuring out exactly what your rights are as a small business, it’s a lot to navigate for teams in the small businesses world that may not have a lot of resources to tap in to.
Lucky for you, we at Business Fuel have decided to help take away a bit of the tax stress and confusion for you this year by dropping some of our top surefire tips to maximising a healthy tax return for your small business in 2019:
The first step to making tax time less painful year-on-year is to know exactly where to go to find the information you need – What were my expenses? Where’s the receipt for that equipment? It can’t be emphasised enough how having the right systems in place can not only make your life easier but save you any stress down the road should the ATO ever need to review or question your records.
If you’re not so much a paper records person, consider electronic records-keeping and record, take pictures and upload your receipts via your Accounting software or set yourself up on the ATO app. Not only will this use less physical storage space, but it will also help streamline your accounting practices and be a good backup of your records in case of theft, fire or a flood.
By making sure everything is recorded, and that you have a clear process in place to do so, you will take an enormous amount of stress out of tax time for you and your staff during this time of the year.
Know your deductions
The government has a myriad of deductions that small business owners can make to help regain financial ground and ensure their cash flow remains positive. The only issue is – you need to know what you’re looking for.
Is your business incorporated? Do you qualify for any write-offs or allowances?
Knowing how the ATO views your business opens you up to a world of tax possibilities you didn’t know where possible. If you don’t know what these are for your business, seek the help of a tax accountant (their fees are deductible too!). From rent, equipment, utilities and repairs, and any professional advice your small business receives or uses over the course of that financial year, while it may take some initial paperwork or outlay, the tax benefits – especially to a small business – can be enormous.
Write-off those assets!
If you bought an asset for your business in the past financial year, and it cost less than $30,000, you can deduct the business portion on your tax return – immediately. Things like equipment, vehicles, tools, computers and phones can all be claimed as part of the scheme.
Keep an eye on your Super
Small business owners can claim a tax deduction for the super payments they make on behalf of their employees – sure, everyone knows that. But did you know that unless the super has been paid out prior to June 30, the amount becomes non-tax deductible?
Keep an eye on those deadlines and ensure that all necessary payments are made within 28 after the end of each quarter. If not, you could be opening up your small business to a mammoth of unnecessary expense, which could be saved by keeping those records we discussed in order!
Tax time really comes down to two factors – knowing what you have, and knowing what you’re eligible for. Investing money in your business is always an important step towards growth, and doing it correctly could see even more gains than you were anticipating.
Ready to invest in your business before the new financial year?