Taxes are no business owner’s favourite topic but they are an incredibly important part of your business’s health and viability. The best way to make sure that you are meeting all of your tax obligations without getting a nasty surprise at the end of the year is to plan. There are a few simple strategies that you can employ to ensure that you stay on top of your taxes all year long.
Put all the important tax dates on your calendar now
Take a look at this handy list from the ATO website and put the dates on your calendar so you can easily stay on top of them. The list contains all of the important due dates of the year, of which there are quite a few. If you don’t have them marked out in a way that you can keep on top of.
Not all of the dates will be relevant to your business, but it is your responsibility to be across all of the relevant dates. Even if you can’t pay right away, it’s important to lodge your taxes on time so that the ATO can see you acknowledge your obligations.
Have a system to keep all of your financial records
We all start the new financial year with the best of intentions to keep great financial records, but some business owners do it better than others. It’s not enough to just keep receipts in a drawer somewhere because you’ll just give yourself a headache when it comes time to lodge, not to mention the likelihood that something will get lost.
Keeping balance sheets, bank statements, asset details, and other documents are essential for smart tax planning. When you lodge your taxes, you’ll also find that keeping on top of things during the year will make your life so much easier. A great small business accountant or bookkeeper will be able to help you keep everything in check if it’s becoming too time-consuming.
Make the most of your deductibles
It’s not always possible to control your deductibles, but there are times when you can, and these are the times when it’s important to make the most of your deductibles. If you wait until the EOFY is drawing close, you can then assess how successful your year has been and then decide if this is the year to make some extra tax-deductible purchases.
You can use this strategy to somewhat control which tax bracket you end up in. If you have had a boomer year for profits, that could be the time to make some upgrades or necessary purchases that you can claim as a tax-deductible asset.
If you need help getting your business prepped for the new financial year, get in touch with the team at MSI Taylor. We are expert tax accountants who can make sure that your taxes are simple and easy to stay on top of, with skilled accountants who provide accounting and bookkeeping services and advice. If you are looking for local experts, get in touch with MSI Taylor, your Brisbane business accountant today.