With June 30 fast approaching, many small businesses are wondering what we should be doing to get ready for tax time. We share our top tips to ensure you feel prepared to end the financial year on a high.
Have your filing system organised
Having a small business usually means having a huge volume of paperwork. Having all your relevant paperwork i.e. receipts, bank statements, transaction records etc., housed in the one filing system will make things more manageable and accessible when you need them. Your filing system could consist of binders, an expanding file or a filing cabinet. The key is to set up a logical system and then consistently file your documents under the correct categories. You’ll be glad you did!
Make sure you’re clear on exactly what you can claim
Being aware of the different types of deductions that apply to you and your business will help ensure you aren’t missing the opportunity to lower your tax liability. Here are the most common things you may be able to claim:
- business phone costs (both mobile and landline)
- utility costs e.g. electricity, gas, internet, etc.
- the cost of equipment e.g. desks, chairs, computers
- occupancy expenses e.g. rates, rent, etc.
Studied in the past financial year? If there is a direct link between any study you undertook and earned income, then you can claim for it. You can also claim for any magazine subscriptions that also function as an educational resources, as well as any professional association fees.
If you travelled in relation to your business, then you are eligible to claim a percentage of the related expenses.
Don’t forget that the superannuation you pay your employees is also an expense for which you can claim a tax deduction.
Find yourself an expert
Engaging an Accountant will not only save you time, but they’ll also ensure you are receiving all the deductions for which you are eligible and make sure you are meeting all of your legal requirements that you may be unaware of.