Paying tax is just one part of running a business, however, not having good processes can lead to mistakes that can cost you time, money and stress. While the temptation might be to worry about tax only when the EOFY comes around, good tax planning involves thinking long term. A good idea is to kick off the new financial year with a plan to sit down with your accountant early on and discuss your business strategy. That may include growing your business, improving productivity, or planning for sale. You will need good advice early to help you formulate a plan that enables you to meet your business and financial goals.
Our top 3 tips include-
- Seek Advice and Support – engage a tax professional who will be able to keep you on track and avoid costly mistakes. This year it’s even more important to ask the right questions and provide relevant information to help your adviser determine if you’re eligible for any COVID-related tax incentives and deductions. You can read about some of the incentives in our article on the federal budget here.
- Keep Good Records – it’s essential that you have good records that meet tax requirements. Make sure that your business processes include regular reconciliation of business figures with bank statements and all source documents (including tax invoices and receipts). One of the easiest ways to do this is to use Accounting Software and connect to your bank feed. That way you can easily log in and reconcile payments on a regular basis. If you make payments using B2Bpay, our clever integrations with Xero, MYOB and Quickbooks makes it easy to record and reconcile these payments. The same goes for accepting payments. Read more about our integrations here!
- Use Technology – smart businesses leverage technology to help run the business by using accounting software systems, mobile apps and point of sale software. All these can help you save time and report income and expenses accurately and in real time. For example, if you use Xero, we’ve compiled the top 5 apps to connect to to help run your business here. Your adviser will be able to recommend the best technology you can implement in your business to help you run your business more efficiently.
This content was put together for information purposes only. The content does not constitute tax and/or legal advice and should not be relied upon as such. You should seek tax, legal or other professional advice before acting or relying on any content.
Other important links
- Small Business Concessions
- General COVID19 – Support for Businesses & Employers
- ATO – Due dates for lodging and paying tax
- COVID19 – Tax Relief
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