At this End of the Financial Year, you should consider the ways in which you can save money. Paying tax may seem like a burden, but it doesn’t have to be. That is why we have collated our top tips to ensure that you are not overpaying and take away some of the stress.
- Deductions and Operating Expenses
Your success at tax time ultimately depends on how well you have kept your records. By providing proof of business expenses such as equipment repairs, staff costs and utilities such as electricity and petrol, small businesses are able to provide a true reflection of their before-tax income. One of the biggest mistakes to make is forgetting about expenses and getting taxed at a higher rate than needed.
- Bad Debts
Unfortunately, bad debts are a part of running a small business, especially as a tradesperson. Bad debt is the money you are owed but are very unlikely to receive. You must write-off these bad debts and document your efforts of attempting to obtain them. This is another way to ensure you are taxed correctly.
- Plan ahead and Save
A little-known strategy that actually makes small businesses money is to put aside the tax you have to pay as you go. On a regular basis, you can add your tax payable to a savings account and earn interest on it! By the time you have to pay your tax, your account will hold all you need and some extra interest that is yours to keep.
- Hire an Accountant
Tax time can be daunting. And the success of small businesses often depends on how well they do at tax time. Accountants and tax specialists on ServiceSeeking.com.au have an excellent history of saving their clients time and money during the End of the Financial Year.
