Running a small business and managing your tax (and bookkeeping) can be quite a handful. As many business owners have realised, there is a significant amount of governance to ensure a business is 100% compliant with the ATO. Here are a few simple tips to familiarise yourself with if you are (or thinking about becoming) a small business owner.
Instant asset write-off
This is one of the most important tax breaks to take advantage of as a small business owner. Instant asset write-off allows you to include anything you have had to purchase for your company, such as an oven or coffee machine, and claim a deduction on that asset of up to $30,000. This write-off is especially important to independent businesses that require a lot of tools or machinery upfront and quickly.
Understand the ATO watchlist
Claims such as laundry, home offices, car usage, dining out etc. can all come under scrutiny when it comes to lodging your tax return. Know what the ATO will be looking for and claim wisely.
Bring in a professional
The initial investment of aligning yourself with a tax professional, especially if you are new to the world of business, can be quickly off-set by a greater return, better tax position, and overall peace of mind.
Lodge on time
One of the most important pieces of advice is to lodge your taxes on time to avoid any penalties or future issues with your tax return. To help you lodge on time, keep copies of all documents and receipts on hand whether electronically or filed away (from sunlight) to prevent fading. Being organised and switched on throughout the year can save you grief later on.
For more tax tips tailored to your needs, speak to one of our tax specialists at ITP Queensland https://www.itpqld.com/offices.