Paying Your Due: Some Valuable Tax Tips for Small Businesses
Everyone must pay their taxes, and no one is ever exempted. Say what you will about it, but it is required to keep our country afloat. That being said, everyone has the responsibility to accomplish their dues.
Of course, this would mean that your small business also has to pay.
It may seem unfair at first, but you must remember that even big companies are being 'shown the bill,' meaning that company size has no say in it.
In such a case, you must take note of the following tips to help make your tax payment hassle-free.
1. Implement Good Record Keeping
You may think that you don't need to keep such records, but this is simply not true.
In fact, a lot of small businesses would even go as far as keeping receipts for everything they buy. If a company is being audited, the IRS would want to see where the money went.
Of course, knowing about your employees and their earnings is also important.
2. Find a Reputable Tax Professional Who Is Knowledgeable
As a small business owner, you may find yourself a bit confused about the tax laws or what to do about them.
That is why you need to hire a reputable tax professional who knows the ins and outs of the tax business.
It may be expensive to hire a professional, but they would make your life easier.
3. Coordinate with the ATO to Correct Any Errors
This is also an important part of the process, especially if you are dealing with mistakes.
Sometimes, you may have forgotten to include something in your returns, or you may have put the wrong things.
In the case of the latter, you will have to correct it before filing the return.
4. Stick to the Deadline and File on Time
You must remember that filing your tax returns on time is important. There may be cases when people were late on filing despite having to pay penalties.
Of course, it is important to pay on time, but there is also a time limit.
In such a case, you must know when the deadline is. There is a penalty for every month that your taxes were not filed. That being said, it is also important to pay on time to avoid this penalty.
5. Have All Necessary Paperwork Handy
This is also an important tip to take note of. You should make sure that all your documents are accurate and hard copies.
This would mean that you would have to print all the receipts you have so that you may have a record of them.
Make sure that you have a list of them so that you may easily identify which are which.
6. Optimise Depreciation Deductions
This is especially true if you are in business for a long time. There are times when you have assets that you have purchased, but you cannot use all of them at once.
In such a case, it may be best to take advantage of the depreciation.
Tax payments do not have to be complicated. With enough preparation and understanding, you would be able to accomplish them all, despite your business being small or just starting up, in this case.
All you have to do is to make sure that you follow all the tips and suggestions and let your tax professional help you as well.
With all of that being said, if you are looking for a well-trusted small business accountant on the Gold Coast, look no further than our experts here at New Wave Accounting & Business Advisory. We provide end-to-end accounting and bookkeeping services that help scale & grow businesses. Call us today and let us help you prepare and pay your taxes on time.