The 2016/17 financial year is now over, and a new one has just begun. As a small business has a turnover of up to $10 million, it forms a crucial part of the Australian economy. What's most important now is to get taxes done right. Here are three helpful tips for small business owners to make tax time that bit easier.
Tax time can be daunting, but with the right advice and research, it can be just that much easier. With the arrival of simpler Business Activity Statements (BAS) on 1st of July 2017, it’s quicker and easier for you to prepare and lodge your BAS. You only need to report the following GST information: total sales, GST on sales and GST on purchases. There’s also a filter tool at business.gov.au/smallbusiness which can guide you to the support available to your business. Accredited tax professionals can also provide a great level of understanding and advice specific to your business.
The end of the financial year provides a timely opportunity to businesses to take a breath and regroup. It is important to take the time to review depreciable assets if you have not already done so. Taking the time to do this means you can use simplified depreciation rules that can ultimately create strong savings for your business.
A small business owner will have numerous expenses during the financial year, whether it is equipment or resources that help the business run that bit smoother. Many small business owners in Australia are unaware that there are immediate deductions for small businesses that could help you save when you submit your tax return. Small businesses can purchase assets costing less than $20,000 each for their business and deduct the full amount immediately from their income until June 2018.