Tips to Get the Most Out of Your Business at Tax Time

  • Don't Miss Any Deductions. You want to claim everything you're entitled to claim through your business, no more and no less. You can claim deductions for any costs you may incur while you run your business, but you can't claim domestic or private expenses. Each year, you're entitled to claim any operating expenses like wages and stationery for your office. If you have machinery or equipment, you can claim that over the span of several years.
  • Enlist a Registered Tax Agent. You want someone who is going to know all of the ins and out of the business tax lodging world, and a registered tax agent will be happy to assist you. They should be government approved as this means they've met the Tax Practitioners Board's standards. They will be able to identify all of the deductions to which you are entitled.
  • Include All of Your Business's Income. When you go to lodge your taxes, declare all of your online sales and your cash. This money includes anything you've made throughout the year by the sharing economy. If you've rented out a room in your business or a parking space, include this income.
  • Income from Personal Services. Many self-employed small business owners that primarily get paid for their expertise or skills forget about personal service income. There is a new tool that will help you decide if you get to claim any income for personal service. This is so important, as it can affect your deductions.
  • Look Into myTax Software. The myTax software expanded to include sole traders who routinely lodge their own taxes. It is a very easy, fast, and secure way to lodge your taxes online, at your own convenience.
  • Lodge Your Taxes on Time. As a small business owner, it is extremely important that you lodge your annual taxes on time each year. If you don't do this, you could be charged late fees, penalties, and fines when you do get around to lodging.
  • Simplify Your Yearly Depreciation. If your business has an annual aggregated turnover of less than $2 million, you can use the simplified depreciation rules. An example is the instant asset write-off. You can use this to deduct any assets that you bought for your business that cost $20,000 or less. This deduction is for the year you purchase and use them, or the year you install them, and they're ready to use.
  • Use Standard Business Reporting Enabled Software. To simplify the process of lodging your business taxes, use standard business reporting enabled software. This software allows business owners all over Australia to lodge their annual taxes directly to the ATO. However, you will need an AUSkey to submit your information directly.

Tax time with a new small or large business can be especially stressful for new business owners. You want to make sure you're lodging your taxes correctly and in a timely manner to avoid any penalties. A registered tax agent can be a huge help when it comes to this process as they have the training and the experience to make sure you lodge your taxes correctly.