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The end of the financial year is rapidly approaching and it’s time to get your business finances in order. With the cost of doing business increasing in leaps and bounds, it is more important than ever to ensure your tax bill is as low as possible. Here’s how to make sure you are prepared for EOFY so you can Reduce Business Tax.
5 Tips to Minimise Your Business Tax
1. Use an experienced bookkeeper
- Having an experienced professional taking care of your day-to-day finances is the best start to avoid a complicated tax process. Bookkeeping is time-consuming and can be more complicated than you think. Trying to do it yourself on top of everything else in your busy workday can be too much.
- There are just a few weeks to go until the end of the financial year but you still have time to connect with a bookkeeper so your books are balanced and compliance tasks are up to date. Your bookkeeper will work with you to get your financial records in order and make life much easier for you and your accountant at tax time.
2. Use a thorough accountant
- Just because you can file your tax return yourself doesn’t mean you should. It is far too easy to miss small details and potentially overlook tax deductions that have the power to reduce your bill by tens of thousands.
- Having a reliable accountant will save you a great deal of time and stress, not to mention helping you reduce business tax. A business accountant can also work with you on a plan to stay on top of your tax obligations.
3. Use cloud-based accounting
- Cloud-based accounting services like MYOB or Xero keep all your accounting in one place. You can link your business bank account to this cloud-based software so that all transactions can be immediately recorded and reviewed in real time.
- Shoeboxes of receipts and even manually updated spreadsheets are now relics of the past. If you want to save time and have access to any of your business revenue and expense information with just a few clicks, from any device, switching to the cloud makes a world of sense.
4. Make tax a year-round focus
- Preparation and strategy are vital to reduce business tax. If you work with a tax accountant all year round, have a clear idea of what is deductible and make a plan around this, you’ll be less likely to face bill shock after your tax accountant compiles your annual statement.
5. Spend ‘smart’ before the deadline
- Spending money for the sake of it is never a good idea but if you have some unavoidable expenses coming up, try to get them across the line before June 30th. This could include pre-paying the next few months’ worth of marketing blogs or purchasing some new vehicles for your fleet. These expenses can be written off under this year’s tax statement and will help to minimise business tax.
Don’t bury your head in the sand
No matter how bad a situation you believe your finances are in, your tax accountant has seen worse.
There’s no time like the present to get on top of things so you can sleep easier at night, have a clear idea of where you stand financially and start getting your tax payments under control.
Even if you end up with a tax bill rather than a refund, your tax accountant can negotiate with the ATO on your behalf to figure out a payment plan that won’t impact your cash flow too dramatically.
The above tips are a great start but are general in nature. When you have a reliable and experienced tax accountant on your side, you’ll be able to figure out the best ways to reduce business tax together.
Looking for the best business tax accountants on the Gold Coast? Reach out to Crest Accountants today.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice.
