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3 Tax Tips for Your Small Business in Australia

When trying to claim tax benefits, you might get overwhelmed. There are so many revisions in tax slabs made every year. It can become hard to keep up. You also don’t want to miss out on saving taxes if the government provides certain benefits. Therefore, it would be helpful to know certain tips for paying taxes for your small business in Australia.

While the best tax tip we can give you is to find an excellent and experienced small business accountant in Sydney who can take care of your taxes, we list three tips for paying taxes for your small business.

1. Avail Tax benefits for small businesses in Australia

The tax threshold for small businesses was a turnover of 25 million dollars in 2017-18. This threshold has increased to 50 million dollars for 2021-22 and onwards. This is a massive shift, and many businesses that could not qualify for a small business tax benefit now can. Therefore, one must pay attention to these changes in government regulations. Even a difference of half a percentage can mean saving or spending thousands of dollars.

2. Get tax deductions for all your business expenses.

When considering tax deductions, you must be thorough with the areas where you can benefit. You may receive tax deductions from office space, equipment, commercial rent, business-related travel expenses, and vehicle expenses, including fuel costs, lease payments and insurance covers, office renovations, employee payroll, and asset depreciation. There are some regulations on when the tax deductions will be applicable and when they will not be. Go through with those rules based on your business type. For example, if you are merchandise or travel-based business, you may be entitles to receive motor vehicle tax deductions.

3. Do financial reporting for your business.

Financial reporting is the cash flow, profit and loss statement and a thorough analysis of your business and its profitability. A financial report also considers all the expenses and what each bank statement entails. Therefore, doing financial reporting makes sure that you are on the right track to improve your sales whilst also having all documentation, bank statements and bank reconciliations done. Doing bank reconciliations ensures that you receive the tax deductions in your account on time. Also, making sure that each bank statement has a receipt and explanation attached can help you immensely during tax season.

Consider M.A.S. Partners for your small business accounting needs.

Your business needs a small business accountant who can handle your taxes well, handle bank reconciliations, does excellent financial analysis and help you reach your revenue goals. We can get your business cash flow analysis, key performance indicators analysis and much more. To get these accounting services for your small business, contact us here.