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Small Business Tax Advice That’s Not A Snoozefest

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Death and taxes. The two things that are certain in life. And if you’re a small business owner, the latter can be daunting to deal with. With everything else you have going on, being organised and on top of business admin before tax time rolls around is no small feat. 

What you need is small business tax advice that’s smart, simple and saves you time. Get prepared for the year ahead and take the snooze out of your small business tax return with our guide.

Get The Party Started: Reconciling Your Accounts

Kicking off our small business tax advice is the essential process of reconciling. This gives you a clear picture of what happened this financial year. And, most importantly, ensures your incomings and outgoings line up.

The main thing your trusty accountant will need to reconcile is the monthly reports from your bookkeeper. Before your appointment, collate your bank statements for the previous financial year and find the receipts and invoices. 

Smartpay tax tip: Keep your eyes peeled for unpaid invoices and Business Activity Statements (or BAS, due quarterly to the ATO). Your accountant will want to know about these when they do your small business tax return.

Generally, you’re legally required to keep your tax records for a minimum of five years. These records include anything that supports the contents of your tax returns, like receipts, calculations, nominations, proof of income and other relevant records. 

The Australian Securities and Investment Commission and the Fair Work Ombudsman require businesses to keep employee records for seven years. Unsure what old records to keep and what to shred? Check with your accountant.

Lock Down Your Employee Obligations

Our next nugget of small business tax advice is about your employees. Got staff? You’ll need to factor them in. Your accountant can help you finalise the data for your Single Touch Payroll (STP) for the financial year. This lets your employees access their end-of-year income statements so they can do their own tax returns. So, making sure you have the right payroll numbers for them is a must.
Smartpay tax tip: Did you know most businesses can claim Super as a tax deduction? To qualify, you must pay your employees’ Super from your business bank account before 30 June (EOFY). Yes, even though it’s not due until 28 July.

Take a Squiz At Your Finances And Cashflow

A crucial part of our small business tax advice is about looking at the year that was. Tick these things off to make sure you’ve done tax time right.

  • Have a chat with your accountant (or whoever takes care of your business finances) about whether you hit your targets and stuck to your budget over the past year. These numbers will form the basis of how you do things next year.
  • Consider prepaying some of your expenses for next year in the current year. Or, shift some invoice payments into the following year. Ask your accountant to make sure it’s all above board.
  • Review your expenses for the year. Do a deep dive into what you paid for suppliers, products, insurance and, yes, EFTPOS solutions. The way you collect payments could have a major impact on costs and resources for your business. A simple solution? Smartpay Zero Cost™ EFTPOS to pass on EFTPOS fees and boost your cash flow.

Take The Reins On Next Year’s Planning

Who doesn’t love a good New Year’s resolution? Well, the end of the financial year (EOFY) is also a good time to make plans and positive changes. Use this time to make sure your business is adapting and evolving for the year ahead.

Your certified accountant can help you with tax planning strategies you might not have considered. They can also give you personalised guidance based on your expected taxable income or the assessable income for your business (minus any allowable deductions). From there, forecasting your taxable income for the next financial year will be as easy as pie.
Smartpay tax tip: Don’t forget to check out government support for SMEs. Tax incentives, rebates and deductions could be on the cards for you, depending on your industry and business.

Small Business Tax Advice You Can Bank On

We get it. June can be a hectic month in the lead-up to the end of the financial year. But with Smartpay’s tips and the help of your accountant and financial advisor, you can take the sting out of tax time. 

Disclaimer: Smartpay does not provide tax, legal or accounting advice. This article has been prepared for informational/educational purposes only and does not constitute advice nor should be relied on solely for tax, legal or accounting purposes. Please consult your tax/financial advisor or accountant for advice.

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