Tax preparation tips for this tax season
We get it – tax preparation may not be the most exciting part of running your dream business. You didn’t start your venture to become a tax professional, right? To make it easier we’ve put together this list of 10 tips that will make tax preparation a breeze for you during the Australian tax year.
Tax season can be daunting but with proper tax preparation you can alleviate the stress and ensure a smooth lodgement.
10 tax preparation tips for your business
1.Tax deadlines
The first step in the tax preparation process is to stay on top of the tax deadlines for the upcoming Australian tax year. Mark these dates in your calendar to ensure timely filing and avoid any penalties or late fees. The Australian Government provides clear guidelines on their website regarding tax deadlines, including due dates for BAS lodgement and instalment payments.
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2. ATO regulation and tax changes
Each Australian tax year can bring changes to regulations, deductions, or credits that impact your business’s tax preparation. Stay informed about any updates by regularly checking the ATO’s website, attending relevant workshops or seminars, or consulting with your tax advisor. The ATO provides free webinars on various topics for business owners. Being aware of changes will help you maximise your tax benefits and ensure compliance.
3. Gather all required forms
To streamline the tax preparation process, start by gathering all the necessary forms, such as your Business Activity Statements (BAS), income and expense statements, employee payment summaries, and any other relevant financial records for the Australian tax year. Having these documents ready will save you time and prevent any last-minute scrambling.
4. Gather your records
Ensure that you also have all the other necessary financial documents readily accessible. This includes bank statements, receipts, invoices, and records of any business transactions. Organising these documents in advance will save you time and make your tax preparation much easier.
5. Report benefits you've received
Ensure that you report any benefits received throughout the tax year accurately. This includes fringe benefits, government assistance, grants, or incentives that your business may have received. Stay updated on the reporting requirements to comply with tax regulations. Accurate reporting is essential to avoid potential penalties or audits.
6. Budget for tax
It’s critical that you budget for your business’ tax obligations when doing your tax preparation. You don’t want to be cash strapped and run into cash flow and compliance problems.
7. Outsource your bookkeeping
Consider the benefits of utilising outsourced bookkeeping services for your business. By entrusting your financial records to skilled professionals, you can ensure that your books are accurately managed and all items are correctly accounted for. Outsourced bookkeeping provides you with peace of mind, knowing that your financial matters are being handled with precision and expertise. It will also help make your Australian tax year end a breeze. By delegating this crucial task to professionals, you can free up your time and energy to focus on the core aspects of your business.
8. Outsource your accounting
With your bookkeeping under control why not get professional help to take care of the rest of your accounting and compliance? With Allevi8HQ’s dedicated accounting team by your side, you’ll have peace of mind knowing that your business is always compliant. With our expert accounting services there is no more worrying about remembering important dates or deadlines – we’ll handle it all for you.
9. Watch out for tax scams
Unfortunately, tax season is a prime time for scammers to take advantage of unsuspecting businesses. Be vigilant and watch out for any suspicious communication claiming to be from the ATO. Remember, the ATO will never ask for sensitive information via email or phone. If you receive any suspicious requests, report them immediately to the ATO to protect yourself and your business.
10. Understand where to go for tax help
If you need assistance or have specific tax-related questions, it’s crucial to know where to turn for reliable help. The ATO has a list of answers to their top call centre questions.
For real help and tax planning strategies that will save your business significant amounts of money, speak to our team at Allevi8HQ. We can guide you through complex tax regulations and identify potential deductions or credits. We can also help you with all the requirements for the Australian year end.
Contact us today and let’s get started.
FAQs
When can I start my tax return for 2023 in Australia?
The ATO typically opens tax return lodgment for individuals on July 1st following the end of the financial year. For a business, the ATO opens tax return lodgment for businesses after the end of the financial year. However, the exact date may vary based on your business structure.
For companies and trusts, the lodgment due date for tax returns is typically October 31st following the end of the financial year. Partnerships and individuals operating as sole traders can lodge their tax return from 1 July as they will lodge as individual tax payers.
When is the Australian tax year for businesses?
The Australian tax year for businesses aligns with the financial year, which runs from July 1st to June 30th. During this period, businesses are required to report their income and expenses, calculate their taxable income, and fulfil their tax obligations.
