![\"\"](\"https:\/\/cruzandco.com.au\/wp-content\/uploads\/2018\/06\/tax-time-ready.jpg\")
<\/a>As we near the end of another financial year, now is the time to start looking at your tax\u00a0return.<\/p>\nIf your heart missed a beat when you read that, don\u2019t be alarmed.<\/p>\n
While tax time can\u00a0be a stressful period for small business owners, there are many things that you, as a\u00a0business owner, can do to minimise this pain.<\/p>\n
Here are five things you can do now to ensure\u00a0a smooth tax season and ensure you get the most out of it.<\/p>\n
Records, records, records<\/strong><\/h3>\n\nHaving up-to-date records is the most important component of any tax preparation.<\/p>\n
Apart\u00a0from the obvious, such as purchase receipts and sales invoices, paperwork is something too\u00a0often overlooked until your lodgement is due.<\/p>\n
Now is the time to get everything in order.<\/p>\n
Double check that you\u2019ve recorded your logs for car and home office usage.<\/p>\n
Do you have\u00a0your business travel itineraries with any personal components recorded? Are your books\u00a0reconciled and GST properly categorised?<\/p>\n<\/div>\n
\nDepreciate your assets<\/strong><\/h3>\nWhile your going through your records, have a look through your purchases for new\u00a0additions to your asset pool.<\/p>\n
Depending on your business turnover, don\u2019t forget the special\u00a0case for assets costing less than $20,000 or if your total asset pool is less than $20,000.<\/p>\n
These can be written off completely, even second-hand purchases. In this instance, it may\u00a0be worth considering bringing forward any asset purchases you were planning to make early\u00a0in the next financial year to gain access to the deduction sooner.<\/p>\n
But don\u2019t go running off\u00a0making purchases just to take advantage of this.<\/p>\n<\/div>\n
\nRemember that it\u2019s a deduction, so you\u2019re\u00a0only receiving the amount you have spent multiplied by your marginal tax rate.<\/p>\n
For example\u00a0if you spend $1000, and you pay on average 30 per cent tax, then your refund will be $300, not\u00a0$1000.<\/p>\n
Capital Gains Tax (CGT) Concessions<\/strong><\/h3>\nIf you have just sold or are considering selling your business, capital gains tax is important to\u00a0consider.<\/p>\n
As a small business, there are currently four different CGT concessions that you\u00a0may be eligible for, depending on number of years that you\u2019ve owned the business, the\u00a0structure of your business, turnover of the business and your personal wealth.<\/p>\n<\/div>\n
\nEach\u00a0exemption has its own benefits and has the potential to reduce or wipe out the capital gain\u00a0all together.<\/p>\n
The retirement exemption may allow you to contribute to your super fund
\nwithout affecting your contributions limits and the rollover concession allows you to defer\u00a0CGT on replacing or upgrading an asset.<\/p>\n
This is a tricky area so ensure you are getting\u00a0advice as soon as possible.<\/p>\n
Finance applications<\/strong><\/h3>\nOne commonly overlooked problem with tax time is your ability to get business finance.<\/p>\n<\/div>\n
\nOften, when applying for business funding, you\u2019ll be asked to show your most recent\u00a0financial year\u2019s tax return. Come July 1, your 2016-17 return will no longer be current,\u00a0meaning that you may have to wait until your 2017-18 return is completed before you can begin\u00a0the application process.<\/p>\n
So, if you\u2019re looking to source funding sooner rather than later, now\u00a0is the time to get things in order.<\/p>\n
Deductions<\/strong><\/h3>\nWe couldn\u2019t have finished this article without at least touching on deductions. There are\u00a0many things that a small business can claim against their taxable income.<\/p>\n
Here\u2019s a quick,\u00a0but not exhaustive, list of less common deductions:<\/p>\n<\/div>\n
\n\u2022 Advertising and sponsorship (but not entertainment)
\n\u2022 Bad debts
\n\u2022 Borrowed money – including registration fees and any commissions paid.
\n\u2022 Business travel
\n\u2022 Car expense
\n\u2022 Insurance
\n\u2022 Repairs, replacement and maintenance
\n\u2022 Tax management costs<\/p>\n
One thing not mentioned above is home office deductions. These can be tricky, and a whole\u00a0topic in and of itself.<\/p>\n
For now, just be wary and ideally seek professional advice on what you
\nclaim and how this may affect future CGT on your home.<\/p>\n
Now is the time to begin preparing for your tax return.<\/p>\n
Whether you use an accountant or do\u00a0it yourself, taking the time to go through the above steps will ensure you get the most out of\u00a0the end of the financial year and start the next one off on the best possible footing.<\/p>\n<\/div>\n
Having up-to-date records is the most important component of any tax preparation.<\/p>\n
Apart\u00a0from the obvious, such as purchase receipts and sales invoices, paperwork is something too\u00a0often overlooked until your lodgement is due.<\/p>\n
Now is the time to get everything in order.<\/p>\n
Double check that you\u2019ve recorded your logs for car and home office usage.<\/p>\n
Do you have\u00a0your business travel itineraries with any personal components recorded? Are your books\u00a0reconciled and GST properly categorised?<\/p>\n<\/div>\n
Depreciate your assets<\/strong><\/h3>\nWhile your going through your records, have a look through your purchases for new\u00a0additions to your asset pool.<\/p>\n
Depending on your business turnover, don\u2019t forget the special\u00a0case for assets costing less than $20,000 or if your total asset pool is less than $20,000.<\/p>\n
These can be written off completely, even second-hand purchases. In this instance, it may\u00a0be worth considering bringing forward any asset purchases you were planning to make early\u00a0in the next financial year to gain access to the deduction sooner.<\/p>\n
But don\u2019t go running off\u00a0making purchases just to take advantage of this.<\/p>\n<\/div>\n
\nRemember that it\u2019s a deduction, so you\u2019re\u00a0only receiving the amount you have spent multiplied by your marginal tax rate.<\/p>\n
For example\u00a0if you spend $1000, and you pay on average 30 per cent tax, then your refund will be $300, not\u00a0$1000.<\/p>\n
Capital Gains Tax (CGT) Concessions<\/strong><\/h3>\nIf you have just sold or are considering selling your business, capital gains tax is important to\u00a0consider.<\/p>\n
As a small business, there are currently four different CGT concessions that you\u00a0may be eligible for, depending on number of years that you\u2019ve owned the business, the\u00a0structure of your business, turnover of the business and your personal wealth.<\/p>\n<\/div>\n
\nEach\u00a0exemption has its own benefits and has the potential to reduce or wipe out the capital gain\u00a0all together.<\/p>\n
The retirement exemption may allow you to contribute to your super fund
\nwithout affecting your contributions limits and the rollover concession allows you to defer\u00a0CGT on replacing or upgrading an asset.<\/p>\n
This is a tricky area so ensure you are getting\u00a0advice as soon as possible.<\/p>\n
Finance applications<\/strong><\/h3>\nOne commonly overlooked problem with tax time is your ability to get business finance.<\/p>\n<\/div>\n
\nOften, when applying for business funding, you\u2019ll be asked to show your most recent\u00a0financial year\u2019s tax return. Come July 1, your 2016-17 return will no longer be current,\u00a0meaning that you may have to wait until your 2017-18 return is completed before you can begin\u00a0the application process.<\/p>\n
So, if you\u2019re looking to source funding sooner rather than later, now\u00a0is the time to get things in order.<\/p>\n
Deductions<\/strong><\/h3>\nWe couldn\u2019t have finished this article without at least touching on deductions. There are\u00a0many things that a small business can claim against their taxable income.<\/p>\n
Here\u2019s a quick,\u00a0but not exhaustive, list of less common deductions:<\/p>\n<\/div>\n
\n\u2022 Advertising and sponsorship (but not entertainment)
\n\u2022 Bad debts
\n\u2022 Borrowed money – including registration fees and any commissions paid.
\n\u2022 Business travel
\n\u2022 Car expense
\n\u2022 Insurance
\n\u2022 Repairs, replacement and maintenance
\n\u2022 Tax management costs<\/p>\n
One thing not mentioned above is home office deductions. These can be tricky, and a whole\u00a0topic in and of itself.<\/p>\n
For now, just be wary and ideally seek professional advice on what you
\nclaim and how this may affect future CGT on your home.<\/p>\n
Now is the time to begin preparing for your tax return.<\/p>\n
Whether you use an accountant or do\u00a0it yourself, taking the time to go through the above steps will ensure you get the most out of\u00a0the end of the financial year and start the next one off on the best possible footing.<\/p>\n<\/div>\n
Remember that it\u2019s a deduction, so you\u2019re\u00a0only receiving the amount you have spent multiplied by your marginal tax rate.<\/p>\n
For example\u00a0if you spend $1000, and you pay on average 30 per cent tax, then your refund will be $300, not\u00a0$1000.<\/p>\n
Capital Gains Tax (CGT) Concessions<\/strong><\/h3>\nIf you have just sold or are considering selling your business, capital gains tax is important to\u00a0consider.<\/p>\n
As a small business, there are currently four different CGT concessions that you\u00a0may be eligible for, depending on number of years that you\u2019ve owned the business, the\u00a0structure of your business, turnover of the business and your personal wealth.<\/p>\n<\/div>\n
\nEach\u00a0exemption has its own benefits and has the potential to reduce or wipe out the capital gain\u00a0all together.<\/p>\n
The retirement exemption may allow you to contribute to your super fund
\nwithout affecting your contributions limits and the rollover concession allows you to defer\u00a0CGT on replacing or upgrading an asset.<\/p>\n
This is a tricky area so ensure you are getting\u00a0advice as soon as possible.<\/p>\n
Finance applications<\/strong><\/h3>\nOne commonly overlooked problem with tax time is your ability to get business finance.<\/p>\n<\/div>\n
\nOften, when applying for business funding, you\u2019ll be asked to show your most recent\u00a0financial year\u2019s tax return. Come July 1, your 2016-17 return will no longer be current,\u00a0meaning that you may have to wait until your 2017-18 return is completed before you can begin\u00a0the application process.<\/p>\n
So, if you\u2019re looking to source funding sooner rather than later, now\u00a0is the time to get things in order.<\/p>\n
Deductions<\/strong><\/h3>\nWe couldn\u2019t have finished this article without at least touching on deductions. There are\u00a0many things that a small business can claim against their taxable income.<\/p>\n
Here\u2019s a quick,\u00a0but not exhaustive, list of less common deductions:<\/p>\n<\/div>\n
\n\u2022 Advertising and sponsorship (but not entertainment)
\n\u2022 Bad debts
\n\u2022 Borrowed money – including registration fees and any commissions paid.
\n\u2022 Business travel
\n\u2022 Car expense
\n\u2022 Insurance
\n\u2022 Repairs, replacement and maintenance
\n\u2022 Tax management costs<\/p>\n
One thing not mentioned above is home office deductions. These can be tricky, and a whole\u00a0topic in and of itself.<\/p>\n
For now, just be wary and ideally seek professional advice on what you
\nclaim and how this may affect future CGT on your home.<\/p>\n
Now is the time to begin preparing for your tax return.<\/p>\n
Whether you use an accountant or do\u00a0it yourself, taking the time to go through the above steps will ensure you get the most out of\u00a0the end of the financial year and start the next one off on the best possible footing.<\/p>\n<\/div>\n
Each\u00a0exemption has its own benefits and has the potential to reduce or wipe out the capital gain\u00a0all together.<\/p>\n
The retirement exemption may allow you to contribute to your super fund
\nwithout affecting your contributions limits and the rollover concession allows you to defer\u00a0CGT on replacing or upgrading an asset.<\/p>\n
This is a tricky area so ensure you are getting\u00a0advice as soon as possible.<\/p>\n
Finance applications<\/strong><\/h3>\nOne commonly overlooked problem with tax time is your ability to get business finance.<\/p>\n<\/div>\n
\nOften, when applying for business funding, you\u2019ll be asked to show your most recent\u00a0financial year\u2019s tax return. Come July 1, your 2016-17 return will no longer be current,\u00a0meaning that you may have to wait until your 2017-18 return is completed before you can begin\u00a0the application process.<\/p>\n
So, if you\u2019re looking to source funding sooner rather than later, now\u00a0is the time to get things in order.<\/p>\n
Deductions<\/strong><\/h3>\nWe couldn\u2019t have finished this article without at least touching on deductions. There are\u00a0many things that a small business can claim against their taxable income.<\/p>\n
Here\u2019s a quick,\u00a0but not exhaustive, list of less common deductions:<\/p>\n<\/div>\n
\n\u2022 Advertising and sponsorship (but not entertainment)
\n\u2022 Bad debts
\n\u2022 Borrowed money – including registration fees and any commissions paid.
\n\u2022 Business travel
\n\u2022 Car expense
\n\u2022 Insurance
\n\u2022 Repairs, replacement and maintenance
\n\u2022 Tax management costs<\/p>\n
One thing not mentioned above is home office deductions. These can be tricky, and a whole\u00a0topic in and of itself.<\/p>\n
For now, just be wary and ideally seek professional advice on what you
\nclaim and how this may affect future CGT on your home.<\/p>\n
Now is the time to begin preparing for your tax return.<\/p>\n
Whether you use an accountant or do\u00a0it yourself, taking the time to go through the above steps will ensure you get the most out of\u00a0the end of the financial year and start the next one off on the best possible footing.<\/p>\n<\/div>\n
Often, when applying for business funding, you\u2019ll be asked to show your most recent\u00a0financial year\u2019s tax return. Come July 1, your 2016-17 return will no longer be current,\u00a0meaning that you may have to wait until your 2017-18 return is completed before you can begin\u00a0the application process.<\/p>\n
So, if you\u2019re looking to source funding sooner rather than later, now\u00a0is the time to get things in order.<\/p>\n
Deductions<\/strong><\/h3>\nWe couldn\u2019t have finished this article without at least touching on deductions. There are\u00a0many things that a small business can claim against their taxable income.<\/p>\n
Here\u2019s a quick,\u00a0but not exhaustive, list of less common deductions:<\/p>\n<\/div>\n
\n\u2022 Advertising and sponsorship (but not entertainment)
\n\u2022 Bad debts
\n\u2022 Borrowed money – including registration fees and any commissions paid.
\n\u2022 Business travel
\n\u2022 Car expense
\n\u2022 Insurance
\n\u2022 Repairs, replacement and maintenance
\n\u2022 Tax management costs<\/p>\n
One thing not mentioned above is home office deductions. These can be tricky, and a whole\u00a0topic in and of itself.<\/p>\n
For now, just be wary and ideally seek professional advice on what you
\nclaim and how this may affect future CGT on your home.<\/p>\n
Now is the time to begin preparing for your tax return.<\/p>\n
Whether you use an accountant or do\u00a0it yourself, taking the time to go through the above steps will ensure you get the most out of\u00a0the end of the financial year and start the next one off on the best possible footing.<\/p>\n<\/div>\n
\u2022 Advertising and sponsorship (but not entertainment)
\n\u2022 Bad debts
\n\u2022 Borrowed money – including registration fees and any commissions paid.
\n\u2022 Business travel
\n\u2022 Car expense
\n\u2022 Insurance
\n\u2022 Repairs, replacement and maintenance
\n\u2022 Tax management costs<\/p>\n
One thing not mentioned above is home office deductions. These can be tricky, and a whole\u00a0topic in and of itself.<\/p>\n
For now, just be wary and ideally seek professional advice on what you
\nclaim and how this may affect future CGT on your home.<\/p>\n
Now is the time to begin preparing for your tax return.<\/p>\n
Whether you use an accountant or do\u00a0it yourself, taking the time to go through the above steps will ensure you get the most out of\u00a0the end of the financial year and start the next one off on the best possible footing.<\/p>\n<\/div>\n