The financial year is an important time for all businesses. There are many things that all businesses must do, such as a plan for the new financial year, complete the bookkeeping and the tax returns. You need to make sure that everything is well-organized, and you need to make sure there are no mistakes or errors. Even a small mistake will cost you heavily for which you need to be pretty careful when you are planning your taxes. Doing everything correctly and accurately will help you work smarter in the coming year.
Important tasks that you should not miss out
When you want to avoid unwanted issues or mistakes when planning for the 2021 financial year. Given below are some of the essential tasks that you must not miss out without fail. Check it out!
1. Compliance and Record-Keeping:
As a small business owner, there are several yearly tasks that you need to complete are a summary of expenses and income within the loss and profit statement. You also need to conduct stock takes and summaries of your records on creditors and debtors. Other tasks collating records of assets on the improvements to calculate the depreciation expenses, and lodging and completing your income tax return.
Apart from that, you also need to lodge yearly reports, Goods and Service Tax, fringe benefits tax, and the taxable payment reporting system. Meeting all the superannuation requirements are also one of the main tasks, which you need complete. If you are not sure what exactly are your obligations, make sure to get in touch with a tax accountant in Perth.
2. Look for the tax deductions you can claim:
Make sure to conduct plenty of research and take a look at the tax deductions, which you can claim. The only way you can claim deductions when your business uses computers, tools and machinery, has expenses for motor vehicles and has a website. Your business can also claim tax deductions if it has travel expenses, utilizes diesel fuel, and runs at home.
You can also take the help of ATO (Australian Taxation Office) if you are a sole trader and get to record your expenses and income through their app. Make sure to write off all the assets or debtors before the year-end so that you can claim the tax deductions.
3. Always take the help of a registered tax professional:
When you are taking the services of a tax agent, make sure to check whether or not they are registered. Never opt for the services of an unregistered tax agent. Doing so will lead you to unwanted problems. All trusted tax agents are registered under TPB or Tax Practitioners Broad. There are two ways through which you can if the agent is registered. Firstly, you can search the TPB register and secondly, look for the registered tax practitioner symbol. You will find the symbol located within the business cards, website, brochures, or stationary. This particular symbol carries the agent’s registration number and the type of registration that have.
4. Make sure to stay updated with the tax changes:
Tax changes are said to take place every year. So, staying aware of these changes is highly compulsory. The changes might occur within the tax deductions and law. If you have an experienced and trusted tax professional working, he/she will help you understand these changes.
They will provide you with accurate information, which will help you prepare your tax planning accordingly. You can also learn more about the changes through the small business newsroom of ATO.
5. Update and review the marketing and business plans:
You must give yourself time to set up for the upcoming financial year. There are several ways to do so. Look below!
• Make sure to remind yourself about the priorities and goals.
• Take a look at whether or not your strategies are working.
• Try to adapt to the new changes within your environment.
• Make the most of all the opportunities that come your way.
• Do not forget to maximize and prioritize your efforts. Try not to work harder but smarter.
• Research and find out more about marketing and business plans.
6. Don’t forget to review your insurance:
You need to take a look at whether your business has its insurance in place. When the circumstances changes, you need to update the insurance cover. Go through the PDS or product disclosure statement carefully. Look for several terms, such as floods as the definitions might vary among the insurers. It will be much better to get yourself an insurance broker. The broker will provide you with information and help you receive the best deal for your business. They are highly-explained and are well-aware about the insurance is ideal for the type of business you operate.
Over to you!
Many business owners will take their time when going through their financial reports. Doing so will give the chance to prepare for tax planning for the next financial year. It will also lessen the chances of an error or mistake to take place. You must consider contacting business accountants Perth, who will guide, and assist you during the entire process.
