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Discover our top small business tax tips

Discover our top small business tax tips

By |2022-04-28T08:17:43+00:00January 14th, 2022|Blog|0 Comments

Please note that the information provided in this blog post is general in nature and intended as a guide only. For more specific information tailored to your unique requirements, please get in touch with an expert Maximum Business Solutions bookkeeper.

As bookkeepers, we often find that small business owners aren’t taking full advantage of the opportunities that they’re eligible for.

At the end of each financial year, business owners may feel like they’re missing out on wasted opportunities or that they’re unsure how to appropriately fill out a business tax return.

In the world of taxation, there’s a lot to understand and at the end of the financial year, you’ll find yourself doing more for your business than just tax returns!

Bookkeeping services in Melbourne can help you to discover ways to maximise your savings during tax time.

Discover our top tax tips in this blog!

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What things can you claim on your taxes?

You may already be aware that individuals often miss essential tax deductions on their annual tax returns. But did you know that business owners often miss out on substantial tax deductions too?

Anything that individuals can claim on tax, you also can too, including:

  • Work uniform (including laundering)
  • Parking costs
  • Fuel for your car
  • Stationery

These are the standard items that you’ll get back on your tax return almost every year.

What are some unknown tax deductions?

Some other items that you may not realise can count as deductions, include working from home essentials, such internet usage and electricity/gas bills.

Other items you might not consider include:

  • The rent of your office/warehouses
  • Assets, such as investments
  • Machinery and equipment
  • Valuables, such as your laptop or computer
  • The registration of your car
  • Donations
  • Working from home and home office
  • Accommodation and flight allowance if you travel for work

Anything that you buy and use for your business can be used as a deductible.

What are the most deductions I can claim?

The largest net amount you can claim on deductions without proof is $300. This is the same for individuals and businesses.

When filling out your tax return, you won’t need to attach any proof of purchase. But if you claim more than $300 cumulatively, then you may be audited and asked for proof, such as receipts.

With receipts, there is no limit to the amount you can claim on your tax return.

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Move your bookkeeping online

Another great tip we often find ourselves telling our clients is to move online. This includes:

  • Doing payroll bookkeeping online – including sending paychecks
  • Obtaining digital/email receipts, and when you can’t, scan them and transfer them online
  • Inputting all employee information online

By transferring online, you keep crucial data and evidence protected. It’s much more difficult to lose information when it’s stored online, especially when it’s on an Internet-based drive.

If you still cherish traditional filing methods, you can also maintain hard copies of information in a filing cabinet as a backup.

When you need assistance with your tax return, we invite you to connect with Maximum Business Solutions for bookkeeping in Bayside.

When you get assistance from a bookkeeper, create a separate Dropbox or similar online drive, and input all your essential documentation for the bookkeeper to navigate.

This can help them to highlight and make copies of information they view as important, without disrupting your personal files.

Online bookkeeping software such as Xero or MYOB for small businesses can support you by offering you a streamlined view of all your bookkeeping data from the one software application.

Audit your suppliers and clients

During tax time, it’s a good idea to verify your records related to:

  • How much budget is distributed to your suppliers
  • How much profit you’re making from supplier’s products or services
  • What other supplies exist that produce the same goods you use

This is one exercise that small business owners often look over as they are generally more concerned with forecasting and business activity statements.

Explore incentive opportunities

Many small business owners don’t realise how many incentives and grants exist that they could be applying for.

You can simply use this Australian Government Grants and Program Finder to help you discover opportunities you’re eligible for. All you have to do is fill out a questionnaire, provide some information related to your industry, and input your business net worth.

Working with your accountant is another way you can understand the scope of money-saving opportunities that are out there.

Who can I talk to about taxation?

Maximum Business Solutions are bookkeepers in Melbourne’s South East

Maximum Business Solutions is a bookkeeping firm in Beaumaris that can assist you in adapting to each service outlined in this blog – and more!

So if you need help from a MYOB or Xero bookkeeper in Melbourne with cloud bookkeeping, or you want to learn more about tax deductions, grants, or how to audit your suppliers, then contact Maximum Business Solutions today!

Call us on (03) 9589 0128 or contact us online to organise a chat.