Understanding Small Business Tax Preparation

Tax season sneaks up every year, as businesses everywhere scramble to organise their paperwork to properly catalogue their finances for the year, it is important to be aware of your tax responsibilities. Small business tax preparation can be confusing, but there are steps you can take to better understand the process and make things easier for yourself. Keeping track of your finances ahead of time also allows you to be on top of your business expenses, ensuring you avoid any fees once tax season arrives.

If you require tax advice for your small to medium business, contact one of the best SME accounting firms Brisbane has to offer. Call Taggart & Partners on (07) 3391 1188, send an email to enquiries@taggartandpartners.com.au, or get in touch online.

Best Tips for Small Business Tax Preparation

Understand Your Requirements

When it comes to tax preparation for small business owners, the most important part is to be aware of your requirements. While we all need to lodge tax returns, the information you need to provide and the date it needs to be lodged may vary based on the structure of your business. The ATO website has handy information for business owners to assess their requirements, while speaking to a professional accountant will help you better understand the information you are expected to provide, and when it needs to be provided by.

Organise Your Financial Records

Most people relate to having to scramble for their financial documents once tax season arrives, eventually discovering them hidden away in a draw somewhere. When you operate your own small business, it is important to keep track of your financial records, so they are neatly arranged and on-hand once you need to declare your income. Keeping a specific folder for your records means you are always aware of where they are, while keeping the data in an online document makes access even easier.

Research Potential Deductions

Being aware of any potential deductions you can claim is one of the most important steps of tax preparation for small business owners, as it may minimise how much tax you must pay. Tax deductions are something you should be tracking since the beginning of your business, as purchases and expenses from before the business officially opened may also be eligible for deductions. If you are unsure of what you can claim as a deduction, speak to an accountant who can go through your expenses with you and list those eligible for tax deduction. Some may even be eligible to claim year on year.

Check Concession Eligibility

When you operate a small business in Australia, you may be eligible for several tax concessions that lower how much tax you need to pay. These include income tax concessions, small business CGT concessions, and GST and excise concessions. These concessions are available for businesses with an aggregated turnover of less than $10m, with further information being available on the ATO website. A key part of small business tax preparation is being aware of the concessions that are available to you, as they have the potential to be a great benefit during tax time.

Speak to a Professional

Preparing your taxes is often a stressful process, especially if you have little experience with the matter. Having to prepare your personal tax report is one thing, but also having to do it for your business is another matter entirely as you must keep track of your company’s income and expenses, as well as any deductions or concessions you may be eligible for. To simplify the process, it is recommended you seek out professional advice by speaking to a qualified accountant. At Taggart & Partners we understand how confusing tax preparation for small business owners can be, which is why we are here to help you minimise your tax and grow your business.

Contact Taggart & Partners Today!

When you work with Taggart & Partners, you work with an experienced business tax accountant who is dedicated to helping you achieve your business objectives. Whether you are seeking to better understand small business tax preparation or to protect your assets, give us a call on (07) 3391 1188, send an email to enquiries@taggartandpartners.com.au, or get in touch online.

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