(2020 January ) Six things to do now to make tax time 2020 a little less taxing
New year tax tips for SMEs
Stacey Price, accountant and owner of Healthy Business Finance, tells SmartCompany there are other some important tax things for small business owners to keep in mind at this time of year.
Get on top of due dates for tax returns. If using a tax agent, the deadlines for tax returns for the year ended June 30, 2019, will be coming up in a few months. With New Year hangovers still in full swing, due dates can creep up quickly.
Understand your cashflow. Often there is a Christmas credit card debt to deal with; ATO obligations and holidays means there are competing priorities for your money.
Set yourself up for success. We see many new businesses launch in the new year, which is exciting. So set up your business accounting software right from the start. Invest in training to boost your knowledge and create consistent good habits.
Understand the difference between GST, income tax and PAYG withholding. Some business may have all, none or some of these obligations. Don’t assume you know the difference or rely on advice from your long-lost relative at the family BBQ. Your tax agent is your best friend to explain all of these.
Set up separate bank accounts to save money for GST and income tax. Out of sight, out of mind. This means paying the ATO is much less stressful as you will already have the funds set aside outside of your normal business operations.
Know who can help you. Do you need a tax agent or a BAS agent? It all depends on what help you need. But getting unqualified advice could be detrimental to your business viability.