Can you believe it’s that time of year already? Tax time is right around the corner. All over Australia, businesses are gathering their paperwork, ready to start the dreaded task of number crunching.
The good news? Tax time can be a lot less daunting than its reputation. Check out our top five tax time tips for small business and start the new financial year in a positive and productive way.
1. Keep up-to-date with tax changes
It’s important to be up-to-date with any changes to small business tax legislation. In particular, don’t assume that one process will stay consistent year by year. Economic changes can make for changes in tax claims. Find out the latest in the 2023-24 budget and more tax time tips for small business.
2. Spend time on your deductions
As a small business owner, you’re eligible to claim deductions on most of your business operating costs. Therefore, make sure you’re familiar with what you can and can’t claim. For example, if you work from home in an area exclusively set aside for your business, you can claim deductions for the costs of owning, maintaining and using your home for business activities. Additionally, you may also be able to deduct a portion of household running costs such as phone bills, cleaning, heating and cooling.
It’s important to note private and domestic expenses are not deductible. Keep accurate and complete records of all business deductions you’re claiming – remember to keep tax records for at least five years and employee records for seven.
3. Make sure you’re paying the correct tax rate for your company
If you’re not confused enough about tax as a small business owner already, you’re in for a treat. The company tax rate has lowered progressively over the past several years from 30%. Companies with an aggregated turnover of less than $50 million a year will pay tax at 25% in the 2023-24 period.
To understand which tax bracket you’re in and if you’re eligible for any small business tax concessions, it’s best to speak with your tax agent. And on the subject…
4. Source a reliable, long-term tax agent
When it comes to tax time, your books are best left in the hands of the professionals. Source a reliable, long-term tax agent to take care of your accounts and the claiming process. Additionally, they can check your superannuation and bonus payments are in order and advise any actions needed before lodging your statement.
5. Automate your payment collections
The new financial year is a perfect time to automate your payment collections. Make it a fresh start and combine the powers of Eway and Xero accounting software to reduce your receivables days and get paid faster. Eway’s Xero features include PayThis – an easier way to get paid, and the Xero-Eway Bank Feed – making reconciliation a breeze. Reduce admin time by setting up regular direct debit payments. Check out our sister company Ezidebit for some great set-and-forget payment solutions.
Partner with Eway – the ultimate in tax time tips for small business
Eway’s payment solutions offer a wide range of customisable features and tools, not just at tax time, but each and every day. Create a payment experience best suited to your business and the industry you operate in. Track transactions and access key reports with your dedicated MyEway portal and stay on top of all transactions, settlements, and refunds. Get in touch today to find out more.
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