Your Business Tax: Six Simple Ways to Help Save Time and Effort
21 June 2016
Note: This summary is of a general nature only and is not intended to be advice and should not be relied upon as such. When considering finance solutions for your business, we recommend that you seek independent advice from your professional tax advisor and/or Financial Advisor.
As a busy business owner, it may often feel like you have to manage twice the amount of work when tax time comes around. To help make it easier to stay organised (and even save time and effort when preparing for tax time), we’ve compiled a list of handy hints to help keep you in good shape for tax all year around:
1. Consider engaging a registered tax agent
Utilising the services of a registered tax agent or accountant could change your whole perspective on tax time. Having a professional involved will also make sure you’re ticking the right boxes in terms of compliance to avoid running into any surprises down the track. They will also be able to advise you on any tax issues you may have and best of all – their fee may be tax deductible for next year.
2. Find your tax groove and stay organised
If you feel like receipts, invoices and statements are piling up, try setting aside some time every month to get your records in order. Ensure invoicing and payments are up to date and review and file any relevant bank statements.
3. Keeping it strictly business
Depending on your business structure, separating your personal and business bank accounts could make life easier when it comes to identifying and tracking business expenses. Setting up a business credit card or a business transaction account can help to draw a clear line between your business and personal transactions which will, again, save you time when it comes to preparing your tax.
4. Break it into BAS sized chunks
Completing your Business Activity Statement every quarter is a great way to regularly track your income and expenses, and organise your receipts. If you are organised with your BAS, preparing for tax time will be a whole lot easier as a lot of the work has already been done.
5. Make the most of deductions
Have you considered if you’d be eligible for deductions for your home office? Do you know what your tax bracket is and how much tax you are likely to pay? Have you, or can you, utilise the instant tax write off for purchases under $20,000? It pays to do some top-level research and understand your position in order to make informed, strategic decisions about your business both now and into the future.
6. Take advantage of banking solutions
Here are a few ways that you can use Bankwest banking solutions throughout the year to help ease the tax time burden:
Payment Facilities (EFTPOS) – to help you report on transactions and take payments upfront, saving time on invoicing and chasing up late payments. Say goodbye to counting cash and trips to the bank by taking payments electronically.
Online Business Banking – set up direct feeds from your eligible business account to Xero™ or MYOB®, upload bulk payment files from most accounting software programs and download electronic transaction listings.
Everyday Business Accounts – to help you keep your business and personal transactions separate, consider opening an everyday business account.
Asset Finance (Chattel Mortgage or Hire Purchase agreements) – a convenient and common way to fund the purchase of business assets or equipment is using asset finance. Under accounting rules, short life depreciating assets (such as vehicles) lose value at a relatively high rate. In many cases you may be able to claim the depreciation in the asset, as well as the interest paid, which may have a tax benefit.
Seeking professional advice from a tax advisor, committing to regularly maintaining good records and making the most of banking solutions are small efforts to help you stay organised for tax. These simple steps can pay dividends in terms of helping to save you time and stress in the long run.
To find out more about Bankwest’s business banking solutions, call 13 7000.
Xero is a trademark of Xero Limited. MYOB is an internationally registered trademark of MYOB Technology Pty Ltd. Full terms and conditions, including any fees and charges, are available on application. Applications for finance are subject to lending criteria. The information contained in this publication is of a general nature and is not intended to be nor should it be considered as professional advice. You should not act on the basis of anything contained in this publication without first obtaining specific professional advice. We recommend that you seek independent advice on taxation issues from your taxation advisor or accountant. The Commonwealth Bank is the Issuer of the finance products referred to and it reserves the right to require finance arrangements to be made with a subsidiary company of the Commonwealth Bank Group. Employers and employees are encouraged to seek professional advice on all aspects of novated leasing before proceeding. To the extent permitted by law, Bankwest, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL/Australian credit licence 234945, its related bodies corporate, employees and contractors accepts no liability or responsibility to any persons for any loss which may be incurred or suffered as a result of acting on or refraining from acting as a result of anything contained in this publication.