When it comes to small business tax, there are often many areas that small business fall short. So in this blog post for SecurePay, a division of Australia Post, Emma Petroulas talks about some of the key things that small businesses should be aware of when doing their tax this financial year.
1. DO keep track of your figures
Numbers might not be your “thing”, but knowing exactly how your business is performing is vital and is the most important, year-round accounting habit for SMBs. You need to know how much comes in and how much has gone out as the more you know how the business is going, the better your decision-making will be.”
Plus, when it comes to submitting your tax returns to the Australian Taxation Office (ATO), business owners are responsible for their figures, even if an outsourced accounting company has prepared the return.
2. DO know what is tax deductible
If you think you can wine and dine your clients and simply claim those expenses as a tax deduction, think again.
Processing restaurant expenses though the business will attract a fringe benefit tax. It depends on what the expenses are, but you need to be very clear on who was at the meeting, what was discussed – and remember, alcohol is not tax deductible.
If it is a personal expense, don’t put it through the business as well. And if you have a motor vehicle, which is used for both business and personal reasons, only claim deductions for the business use. Continue reading “Tax dos and don’ts for small business”