Part of running your online business is filing your tax returns properly. This requires you to fill out several tax forms and present different documents depending on the nature of your business.
Navigating the entire process of filling out these forms can be challenging, especially if you are not well-versed about tax law. While it can be tempting to prepare your business taxes on your own to save money, it is best to hire an e-commerce tax accountant who will be more than happy to help you file your tax returns. These accountants are knowledgeable about the type of forms you must submit, the dates of submission for your tax returns, and more.
To help you learn more about the essential steps you need to take when filing your tax return for your online business, read the list below.
1. Provide accurate figures of your income and tax payment
When filling out tax return forms, make sure to use the actual amount of your income and the tax you have paid. Never guess or estimate the figures. Remember that the Australian Taxation Office (ATO) can see your accounts and they can easily compare the information you submit with the details in their records.
2. Give the exact amount of your tax deductions
Provide an accurate amount of your tax deductions to the taxation office at all times.
While the ATO has no record of your tax deductions, they are more than capable of analysing the details you submit. If they notice that the tax deductions of your online business seem too high, they may compare them with those that are similar to the nature of your business, location, and industry.
3. Declare your overseas income
In case you went on a business trip outside the country or worked overseas to achieve your online business goals, you should be aware that you still need to file a tax return upon returning home. You may consider working with an experienced e-commerce accountant to help you take note of all your foreign employment income and any other income you receive overseas that you need to declare.
4. Present your receipts for tax deductions and proofs of purchase
Keep and secure copies of all receipts from purchasing work-related items. Otherwise, you can claim only up to a maximum of $300 worth of expenses for your online business. To help you handle this properly, work with an established e-commerce accounting firm to address your online business needs.
Conclusion
Owning an online business requires you to file your tax returns correctly.
You may consider navigating the process of filing business tax returns on your own. However, with all the responsibilities you need to take on, combined with other aspects that you need to oversee regarding your business, handling these tasks all at the same time can make you feel overwhelmed, stressed, and inefficient.
If you need a helping hand to file your tax returns for your online business for you, then you should consider working with experienced accountants. With their assistance, you can rest assured that the forms you submit will be error-free, and you have better chances of getting the best refund possible.
Turn to The Ecommerce Accountant for help in filing tax returns properly for your online business. Get in touch with us for more information.