To lend a ‘helping hand’ to small businesses to get their tax right this Tax Time, the ATO came up with few small business tips. They may not help you grow, but they will keep you out of trouble. They have identified the top 3 issues they see when small businesses lodge their tax returns:
– Failing to report all of their income;
– Not having the necessary records to prove small business expenses claims; and
– Claiming private expenses as business expenses (such as travel expenses).
Small business tips: Claiming deductions
“One, the expense must have been for your business not yourself. Two, if you use something for business and private purposes, you can only claim the portion that is related to your business, and three, you need a record to prove it.”
Make sure to talk to a professional if you are unsure. The fact that your return gets processed by the ATO doesn’t mean that they agree with your figures. It is always later on, sometimes even two years later, when they come back asking questions.
Small business tips: Keep accurate records
The top tip for small business operators is to ensure that their records are kept up to-date, as good record keeping will help them complete and lodge their tax returns,
manage cash flow, meet their tax obligations and understand how their business is doing.
If you’d like to know more about software available to keep track of your business, or simply need help understanding your numbers, call your Brisbane accountants on 07 3160 7386.
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