Struggling With Small Business Tax? Follow These 4 Smart Tips
As a small business owner, you have to look after all aspects of your venture. You must see to it that everything is going smoothly and according to plan.
On that note, some facets of your business may be a bit more challenging to oversee than the others, like your taxes. Truth be told, not a lot of entrepreneurs are fond of combing through budgets and spreadsheets. Many also dread tax season as it usually entails working long and stressful nights to account for every penny spent.
If you can relate to these sentiments, the good news is that there’s a way for you to steer clear of tax season headaches. On top of that, there are steps you can take to make your tax preparation more manageable.
Without further ado, here are four smart tips you should follow when it comes to lodging your tax returns:
1. Enlist the Services of a Small Business Accountant
This is perhaps the most straightforward way to make your tax preparation less stressful. Working with a licensed accountant assures you that your taxes are handled accurately and efficiently. Furthermore, this arrangement allows you to regain both your time and energy to focus on what you do best.
It’s also worth mentioning that taxes can be a complicated area of your finances. Without the help of a small business accountant in Gold Coast, QLD, you are most likely missing out on many opportunities to minimise your tax.
2. Prepare a Tax ‘Savings’
As much as you may want to, you can never avoid paying taxes. Considering this, it’s best to prepare for it in advance—even way before tax season comes around!
A practical way to do this is by putting a percentage of your business earnings aside throughout the year. Safeguard it by putting it in a separate account that you don’t usually access. Doing so enables you to build a tax ‘bucket’ that you can turn to when it’s time to file returns and schedule payments.
3. Monitor Your Cash Flow
Keeping an eye on your revenue and spending may sound like an overwhelming task involving loads of papers, but it doesn’t have to be!
Today, numerous apps let you monitor your cash flow while doing away with shoeboxes full of paper receipts. On top of that, your small business accountant can advise you of suitable digital systems that you can use to track your finances.
Some commonly used platforms today are Xero and MYOB. These accounting software platforms connect to your bank accounts to help you effortlessly maintain detailed and updated records of your transactions.
4. Get the Most Out of Asset Write-offs
Instant asset write-off schemes allow you to reduce your taxable income and tax payable by claiming for the business portion of the cost of an asset you purchased. Take note, however, that this is only applicable during the financial year the item is first used or installed ready for use.
In the country, small businesses are eligible for instant asset-write offs. However, there are certain guidelines and requirements you must follow to make a successful claim. To achieve the best results, make it a point to consult with your small business accountant first.
Preparing and filing taxes can be overwhelming and intimidating. The bright side is that there is something you can do today to make these tasks more manageable. On top of that, remember that you don’t have to do it alone. You can turn to licensed professionals who specialise in tax and accounting services. Enlisting their skills and expertise will enable you to turn your tax preparation into a well-tuned, refined and painless process!
Do you require the skills of a top-notch small business accountant in Gold Coast, QLD? New Wave Accounting has you covered! We offer out-of-the-box accounting and bookkeeping services to help you minimise tax and maximise your profits. Get in touch today to get started!