No matter what business you run, being an entrepreneur can be challenging, exciting, daunting, and even overwhelming at times and that’s just in day-to-day operations, let alone the tax and compliance requirements required to keep everything above board.
The shifting landscape of tax and compliance legislation can make it tricky to stay on top of things in your business, but there are a few ways to stay off the ATO’s radar without the headaches.
It makes sense that to be fully compliant with tax legislation, you’ll need to understand what’s required of your business.
Here are a few key ones to look out for.
Getting lost in the busy daily routine means many business owners find it hard to maintain their records and paperwork that they’ll need come tax time. These can include invoices & receipts, statements, logbooks and more. Letting this slide can make tax time more stressful than it needs to be. Avoiding the hassle is easy to do if you maintain your records well throughout the year.
The development of logbook apps and services such as Dext make it easy to record and store your important business documents electronically, rather than needing to painstakingly sort through piles of paper. The integration of these apps with cloud accounting software further speeds up the processing of things like receipts so your deductions are not only easier to make, but also more accurate (more on that later).
Having a business bank account isn’t a requirement if you’re a sole trader – but it often makes life easier. Tracking and controlling income and expenses is where some great time savings can be found, and maintaining a separation between your business and personal finances makes the right financial records and information at tax time much more accessible.
Like all taxpayers, business owners seek to legally minimise their tax obligations and maximise their deductions. However, many have come under scrutiny from the Australian Taxation Office (ATO) if they make dubious tax claims – irrespective of the intention. What’s more, the ATO’s increased data-matching programs and capabilities means it is even more likely that they will identify any non-compliance. This reinforces the importance of ensuring that records are up to date and the business is tax-compliant, and also highlights the need for business owners to stay on top of what they are legally allowed to claim a deduction for, and the various limits and conditions around those.
See the experts at JJD Accountants.
Phone
(07) 3870 3840
Address
Suite 23 Coronation Place, 10 Benson St, Toowong QLD 4066
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The complexity of today's financial environment demands a regular review of strategy and a focus on execution. We guarantee to help you make sense of financial complexity and apply the insights to meet your goals and help you execute to achieve them.
The complexity of today's financial environment demands a regular review of strategy and a focus on execution. We guarantee to help you make sense of financial complexity and apply the insights to meet your goals and help you execute to achieve them.