• New Wave Accountants

The Basics of Developing a Tax Planning Guide for Businesses

Paying taxes is any law-abiding citizen's obligation because the money is used to finance projects that can develop the country. In Australia, taxes are also used for social welfare, meaning they provide people with a higher quality of living. Of course, everyone is required to pay taxes, especially business owners. However, business tax is a little different than regular tax.

Business tax is paid because they contribute to the economy. However, it can be tricky because they also have other financial obligations. For this reason, business tax planning is recommended because it can prevent losses for the business. Despite this, many business owners often take this for granted because few realise it can maximize their profits. We'll discuss how business tax planning can supplement operations and why it matters.

How Business Tax Planning Works

Business tax planning isn't like regular tax because it accompanies other financial obligations. In most cases, it's an additional cost because it is used to offset the business' operational expenses. It's not a necessary expense because it can be used for whatever the business owner wants to use it for.

Business tax planning involves the business owner filing their income tax as a sole trader. This isn't unusual because you can't file as a company or business. As a result, business tax planning is also a form of planning because the payer can choose to file as a sole trader. When they do, they will be subject to pay tax per personal tax rates.

This means the business may not be taxed at the same rate as the personal income tax. While it may benefit the company, it can also be tricky if the second income is transferred to the taxpayer. As such, they should consult a tax expert to see how it can affect their taxes.

When Should You Plan Your Business Taxes?

Ideally, you should plan your business taxes before the financial year starts because it can prepare you for the future. This is helpful because you can cover all bases, such as tax allowances and income tax offsets which can lower your tax liability. However, depending on your financial situation, you can also do it during the year.

On a related note, end-of-year taxes are also significant because it can be a huge hassle to wait until the end of the year to file your taxes. While it's not that bad, it's still a hassle because you'll need to put aside more time to complete the paperwork. It can also allow you to review your business' financial performance to determine how much more you need to earn to reach your financial goals.

Working with a Financial Professional

To make things easier for you, it's recommended that you work with a financial professional. There are only two qualified professionals: an accountant and a business advisor. Either way, both can help you plan your business taxes.

The difference between an accountant and a financial advisor is the level of services they offer. An accountant can help you with your taxes, but they're not allowed to advise you on the best course of action because it verges on tax advice.

Conversely, a business advisor is qualified to advise you on the best course of action because they're also accountants. They have more experience working with business owners because they've been doing it for a long time. They have extensive industry knowledge and know what they're talking about.

Of course, you must consider their expertise, experience, and services. It doesn't hurt to ask questions and get a full view of their services. This is necessary because you should work with a professional that can help you grow your business.


Business tax planning is crucial because it can help reduce your business' tax obligations. This is particularly beneficial for a small business because it enables you to save money on your taxes. All that matters is not skipping your tax obligations because this can land you in trouble. Otherwise, if your business is in the right hands, you can use tax planning as an asset to aid with business growth.

If you’re looking for tax accountants on the Gold Coast, New Wave Accounting can help you! You should never take tax obligations for granted, so our professional accountants will help ensure that your taxes are filed correctly and on time. Simply go to our website to book a free consultation!

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