Tax Returns for Small Business Owners

7 simple things to do to solve your tax return stress

As we get closer to the end of financial year, it’s time to get ready for the thing you as a small business owner dread – the tax return appointment. We can help you cut down on the overwhelm, and make things easier for you.

  1. Keep good records – this will help reduce your stress and make you feel super organised. This can look different for each business owner, and that’s great! You are unique, and what works for you is perfectly fine. Your options may include a spreadsheet that you update on a semi regular basis (monthly is good), or you might ultise an online option like quickbooks, or Xero.
  2. Understand your deductions – as a business owner you may be entitled to some different deductions than general taxpayers. Common deductions include business-related expenses such as office supplies, travel costs, and equipment purchases. Stay informed about what you can claim to maximize your deductions.
  3. Separate Personal and Business finances – this does make things easier to record and report your business income and expenses. We understand it is not always possible, but it can be a goal you strive to as it can also give you good cash flow budgeting skills.
  4. Know your Business Structure – The structure of your business can impact on how you report income and the deductions you can claim. Whether you’re a sole trader, partnership, company, or trust, understanding the tax implications of your business structure is important. If in doubt, seek professional advice to ensure you’re optimizing your tax position.
  5. Stay on Top of Deadlines – Mark those dates on your calendar! Late lodgment of tax returns can result in penalties and interest. Stay aware of key dates, including the deadline for filing your return and making any necessary payments. Failing to meet these deadlines can dent your bottom line.
  6. Embrace Technology – There is a million apps out there designed to reduce your work load as a business owner. Obviously you can use invoicing and accounting apps as already mentioned, but these can also include receipt tracking apps, calender and booking apps, or CRM. Many tools are tailored to small businesses, making your life easier come tax time.
  7. Seek professional Guidence – When in doubt, consult with a qualified accountant. Professional advice can save you time, ensure accuracy, and potentially uncover opportunities for additional savings. A good accountant is an invaluable partner in navigating the complexities of small business taxation.

Tax time doesn’t have to be a headache for small business owners. By staying organized, informed, and seeking professional guidance when needed, you can tackle your tax return with confidence. Remember, the goal is not just to meet your tax obligations but to optimize your financial position. Here’s to a seamless tax season for your small business!