Last-minute tax preparations are the worst! It is always best to get an early start to avoid unfortunate circumstances. Get ahead of your tax with this checklist, and thank us later!
The Ultimate Tax Checklist for the Astute Business Owner
- Adopt Quality Record Keeping
Records are the soul of taxes; if they are bad, your tax will bear the brunt, and if they are good, your tax will be flawless. Except you and your business are still stuck in the ice age, you should avoid paper records. We are in a digital era for a reason, so trash those papers and embrace the beauty of technology.
For one, papers are unreliable and can get lost at any time. And when you lose your documents, you can’t accurately track your deductions, GST, and depreciation. Hence, you will earn losses in unclaimed credits and refunds, which is bad for business. So, get accounting software or hire a professional to help you out!
- Prepare to Claim Deductions
As unbelievable as it sounds, many deductions are never claimed. Most of these unclaimed deductions fall under small expenses and depreciation. Let’s face it; it is easy to overlook or neglect insignificant expenses like office stationery. But these little things that seemingly don’t matter can accumulate quickly. Unless it isn’t legit, you should claim what is yours, no matter how small.
Depreciation is another deduction that often goes unclaimed. Why? Busy entrepreneurs don’t have the right information, so they don’t know what to claim or not to claim. Electronics, company vehicles, and furniture are the primary culprits. It is high time you claimed what is rightfully yours, or the tax office will have a field day at your expense. You can seek financial opinions from experts like SiDCOR to walk you through the processes.
- Update Employee Entitlements
You are probably drowning in a sea of work and other personal commitments. Thus, you may have forgotten to update your employee entitlements. That’s okay because this is a reminder to do the needful.
Your first point of call is Superannuation Guarantee (GS) contributions. Failure to pay your dues will earn you some unpleasant penalties. You don’t want to know how messy things will get once you transit into the new year with overdue GS, so do the right thing. Don’t forget to update other entitlements like annual and long service leave.
- Resist EOFY Sales
The End of Financial Year Sales might be a good bargain at first thought, but it is an unnecessary venture. To begin with, are the items as “discounted” as they claim? OR do you even need these things in the first place? It is tempting to buy stuff for tax deductions, but the expense has no real value as it will likely depreciate with time.
Then think about the space it will occupy (collecting dust and being of no real use). At the end of the day, you may have to get rid of the item to preserve space. And what a loss that is! For the love of your finances, avoid EOFY bargain sales!
Make hay when the sun shines, and ready your taxes for a brand-new financial year! You can stop by and chat with the team at SiDCOR for more quality advice.