When running a business, whether big or small, every penny counts. Money matters and it’s essential for the business on how to budget the money and allocate it to expenses that matter. However, there are instances wherein small businesses neglect the bonuses of minimising taxes. Stop having the mindset that you don’t have time to deal with it. You should have time, and here are tips to help the business lower its tax bills without the hassle.
Tax Software Can Help
Tax planning is draining and confusing, but there are tax software available in the country to help entrepreneurs to envision their future tax implications in Australia. In a nutshell, these software are able to provide entrepreneurs with a picture of their financial standing and different scenarios that they could take in the future, which will help formulate strategies in managing their taxes.
Track Every Penny Spent
One of the repetitive tasks entrepreneurs often forget to do is keeping track of their expenses, whether through card or cash. Keeping track and organising expenses is one way of making it easier to establish reports that will be presented during tax time.
But with the technological advancements of our time, this task is beginning to become easier, simpler, and less time-consuming.
There are credit card companies that go the extra mile as they provide year-end reports in review of all your bank transactions. On the other hand, banks have put up Online Banking to help people access their accounts through the internet. Lastly, there are also software created to help track expenses and produce a report through a click of a button, removing the equations and only presenting the accurate data.
Deduct Home Office Expenses
Entrepreneurs who work from home can claim deductions as long as these are related to work, which is generally home office running expenses, and phone and internet expenses, and the home is not the principal place of business. Better check with your accountant if you’re qualified, and to know which expenses can be deducted or not.
Double Check Possible Carryover Tax Deductions
Specifically, capital losses, net operating losses, home office deduction or even large charitable donations can be considered as possible carryover tax deductions, meaning these losses or donation can be used to deduct your taxes and will be carried over next year when it’s not fully used in one year.
Deduct Car Expenses
Entrepreneurs can get car expense deductions through the following:
There are apps that can help in tracking the mileage, and you can ask the help of an accountant to help you with the expenses.
Owning a small business is often stressful due to the fact the owner must wear different hats or taking over different positions that should be handled by other people. Since tasks are eating up a lot of time, the repetitive tasks, such as collecting receipts, keeping track of expenses, and organising everything are often forgotten.
In the case you’re thinking of selling the business, being it the reason why you’re starting to collect these tax deductions, you can seek the help of melbourne business brokers to help you with listings, asking prices, and lead gathering.