5 Tips to Make the Most Out of Your Tax Returns - Guide
Updated: Dec 12, 2019
Every business owner, regardless of where they operate or how they conduct their business, will learn to fear one time of the year more than the rest: tax filing season.
The process of filing your taxes can be a long, winding path with a paper-thin margin for error. This is especially true when the strict policies of the Australian Accounting Standards Board (AASB) are taken into consideration. The easiest solution to overcome the woes of tax filing and the eventual tax return is to hire a tax return accountant equipped with the necessary skills to ensure utmost compliance.
As helpful as a tax return accountant may be in regards to paying fewer taxes for your business, it is very much possible to improve the process and outcome with a few simple recommendations. Should you find yourself keen on easing your stress during tax payments by paying less tax this year and saving a bit more time, here are a few suggestions you can work on:
Tax return accounting tip #1: Defer your income as much as possible
Generally, the best time to go about deferring your income is to hold every invoice your business has until the 1st of July of every year—but only do this if your cash flow permits. When deferring your business’s income for tax purposes, ensure that your own classified tax bracket isn’t affected in order to avoid a burdensome amount of tax liability out of negligence.
Tax return accounting tip #2: Make your claims before shelling out any expenses
One opportunity that most business owners tend to miss out on is the ability to get an immediate deduction for any type of expense that they incurred in a year but haven’t paid by the 30th of June. Certain types of claimable expenses include:
Repairs and maintenance on machinery, location, and the like
Tax return accounting tip #3: Bring any eligible payments forward
By bringing forward any payments made after the 30th of June—such as staff training, insurance, subscriptions, consumables—it will be possible to collect even more returns. Make sure to take extra care in tracking your business’s expenses after the aforementioned time period so that it will be much easier to file the necessary paperwork for claiming.
Tax return accounting tip #4: Make the most out of the superannuation caps
An effective way to take advantage of the federal government’s latest updates for superannuation is to put the needed amount of money in it in order to minimize your income tax. Admittedly, the process that this tip entails may be a bit complicated to do on your own, so make sure to let your tax return accountant take care of every technical task.
Tax return accounting tip #5: Write off all your bad debts
Your business’s income tax will only be payable according to the invoices that it issues, regardless of whether it has been paid or not. To avoid paying an extra amount of tax and disrupting your cash flow, spot any unpaid invoices before the tax filing period, and write them off.
Although the process and practice of tax return accounting may be one of the most complicated parts of running the business, it is very much possible to maximize your efforts. By applying the simple, yet effective tips mentioned on this list, you can make the most out of your tax return accountant’s services and set your numbers in the right direction.
If you are looking for a tax accountant in the Gold Coast to make the most of your tax returns, get in touch with us to see how we can help.