9 Tax Tips for Small Business Owners

May 16, 2022    Accounting Services Perthwa

During the tax season, small and medium-sized businesses are looking to gather receipts, check data and prepare files. Tax time can be challenging for many businesses, big or small, but small and medium-sized businesses that manage their taxes independently need to get it right. We have got this time tax tips for small business owners so that you can get over the stress of managing your taxes.

The annual tax return involves coordinating data such as sales tax, payroll, accounts payable/receivable and bookkeeping records. Hiring tax agents Perth can help you to save time as they will help you with annual tax returns themselves.

Tax Tips For Small Business Owners That Can Be Helpful

Before calculating your financial statement, check out these 9 tax tips for small business owners that can help make things easier. Check out the list below:

Hire the right accountant

Your accountant needs to offer you more than just preparing financial statements and doing your tax. If these are only what they do, they are not the right accountant for your business. Your accountant needs to work with you to track your income and spending throughout the year.

They need to ensure that you do not have a cash flow problem, and they need to monitor your gross and net profits. You need to work with your accountant not just from the start of your business during tax season but for eternity.

Make sure that the data is correct

Before you start to fill out tax forms, you need to ensure that the data from every aspect of your financial record is up-to-date and accurate. All the bookkeeping records need to be finalised all over the previous year.

You need to submit any outstanding deposits, payments, and taxes so that your return is a proper reflection of the previous year.

If applicable, you need to restructure your organisation

The owners need to file their taxes via their individual income tax forms for the small organisations. They can take help from the best tax accountant in Perth, like S corporations, partnerships and sole owners that qualify to receive a qualified business income deduction.

Some trusts and estates can also be qualified to take the deduction. This deduction allows non-corporate taxpayers to deduct about 20% of their taxable income. If your business has not been structured already, filing one of these can be favourable if they apply to your business.

Find the right return for your business

You need to ensure that you use the right forms to file your taxes. In this case, tax return agents in Perth can help you a lot. But the forms vary depending on the structure of your business. For instance, sole traders will fill a different form than corporations.

The ATO guides what forms are appropriate for your company on its website. Using the right form for your business can point you to the important supplemental forms to properly complete your return.

Run a quick calendar check

You need to take a look through your calendar for the past year. Check expenses or outlays that you forgot about and could even find expenses like an unexpected trip to meet a client.

It is possible that you might even forget last-minute planned holiday gifts for staff members or a charity event that you sponsored or participated in. Any of these forgotten events might be an extra deductible expense.

Gather receipts and records

You should have detailed information on payments, invoices, payrolls and expenses. You need to gather the receipts, spreadsheets and other information before you start to make it easier to complete your forms.

Instead, take the help of the best tax accountant in Perth, for instance, some credit card issuers offer yearly summaries of your account activity. This and monthly card statements can help you organise expenses paid out.

You do not need to chase down receipts as you will be the one doing the math; having everything important at your fingertips can be beneficial for you.

Schedule time to work on your return

You need to clear your calendar and set aside the time to work correctly on your taxes. They are essential, and you should not be distracted if your staff members cannot leave you alone for some time. You need to work on your taxes after hours.

In such cases, a tax accountant can be of great help to you. But if you have not hired one yet, you need to give your tax return special attention.

Separate your business from personal expenses

If the ATO audits your business and finds that personal expenses are mixed with business expenses, it does not matter if you reported business expenses; the ATO may start looking at your accounts due to merged money.

You always need to have a separate bank account and credit card for your business and run business expenses via those accounts.

Plan for next year

When you are preparing to file and pay taxes this year, you need to look at the challenges you encountered getting your return completed. You need to ensure that you plan better next year to make the filling easier.

If you have an outdated or manual payroll system, you could add hours of unimportant work. This is why you need to consider getting accounting software to organise and streamline your booking.

Do You Require The Help Of A Professional For Tax Tips For Small Business Owners?

Did your business grow? Or have there been significant changes in the past year that needed you to get the help of a tax agent to compile the tax return. The cost of an accountant depends on the location and how tough the return is, but if you cannot do it yourself, it is worth an investment.

Contact Accounting Service Perth

If you are having problems filing your tax returns or not getting the time to do so, you need the help of accounting firms in Perth. An accountant can help you with all the tax-related work and help form the structure of your small business.

To look for an accounting firm, you can type ‘tax accountant near me’ and select a suitable accounting firm or accountant. You can associate with Accounting Service Perth; they are a firm that consists of various tax accountants. They can provide services like bookkeeping, payroll tax return, strategic tax planning and many more.

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