With 2024 now well underway, tax season is just around the corner.
While getting ready to close off the books and lodge the annual return isn’t something many small business owners look forward to, there’s a lot you can do to make it more manageable and maximise your financial position.
Technical Manager, Tax and Accounting Mark Tadulan has some tips to help you get on the front foot this year.
Systemise your business
Leaving it to the eleventh hour to get your invoices, receipts and bank statements ready for your accountant is a sure-fire recipe for stress. There is a better way.
Consider investing in a cloud-based accounting software program that will help you maintain accurate, up-to-date records all year round.
“Platforms like Xero, QuickBooks and MYOB are economical and user-friendly,” Tadulan says. “As well as making tax time easier, they can help your business operate more efficiently.”
Review your expenses thoroughly
Having your return audited is never a pleasant prospect, but you’ll have little to fear from the ATO if you have the appropriate paperwork to hand for all the deductions you intend to claim.
“Any expenses you include in your return may need to be substantiated, so it pays to review your documentation thoroughly before submitting,” Tadulan says.
“The best time to optimise your tax position is before the end of the current financial year rolls around”
Make the most of small business tax concessions
Taking timely advantage of targeted tax concessions, such as the small business instant asset write-off scheme, can help you reduce your tax bill.
For businesses with a turnover of less than $10 million, the scheme enables them to write off the total cost of qualifying assets priced below $20,000 that have been acquired in FY2024.
“Familiarise yourself with the eligibility requirements and check with your accountant to ensure you’re making the most of any planned investment in new equipment or other assets,” Tadulan advises.
Be super compliant
There are stiff penalties for businesses that don’t meet their superannuation obligations. Now’s the time to ensure your employee contributions are current and that you have accurate records to prove it.
Seek advice early
‘If only I’d known’ isn’t a phrase you want to be uttering come July 1. The best time to optimise your tax position is before the end of the current financial year rolls around.
“It may be possible to defer income or bring forward expenses to minimise your taxable income – consulting your accountant or tax advisor can help you develop a tax planning strategy that meets your small business’s unique needs,” Tadulan says.
Cover to safeguard your business into the future
EOFY can be a good time to review your insurance policies too. Your broker can help you prepare an inventory of your assets and work with you to determine the right type and level of cover for your circumstances in the FY2025 financial year. Contact a broker or adviser near you today if you’d like to review your insurance policies.
Important notice – Steadfast Group Limited ABN 98 073 659 677
This general information does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your insurance broker or adviser as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. These insurances are issued by various insurers and can differ.
