Whether you’re a new business or have been trading for years, preparing for tax time can feel overwhelming. Here are some things you can do to make sure things run as smoothly as possible.
Start planning now
With less than a month to go until the end of the financial year-end it’s time to get cracking on a list of things you need to do before 30 June. For example you may want to review and write off any bad debts that you aren’t likely to recover so you can claim a deduction for them this financial year.
What deductions can you can claim?
When it comes to deductions, you can generally claim expenses for the costs to run your business that relate to how you earn your income. Make sure to investigate all of the deductions you can claim so that you can legally minimise your tax liability.
Remember as a small businesses you may be entitled to additional/different deductions.
Organise your tax reporting
Spend some time now to organising your tax reporting and save yourself the stress when June 30 rolls up. You could start by:
- Setting reminders for due dates
- Separating your business and personal finances
- Going paperless –cloud-based storage and bookkeeping systems will save you space with the added bonus of being able to access them from almost anywhere.
Make the most of point of sale (POS) apps
If you`re a retailer, cafe or restaurant a solid POS system can save you plenty of time with your sales reporting by automatically separating your GST and correctly allocating credit amounts for your transactions.
Getting organised for tax time is even better when you`ve been working at it all year. Check back next week for more tips on getting ready for tax time.