With tax time just around the corner for Australian businesses, the local e-commerce industry is about to enter one of the most important periods of the year as added requirements and opportunities must be fulfilled. This is especially when it comes to getting a big tax return. Now, while the concept of applying for a tax return and getting one may prove to be quite simple when all the basics are considered, getting a bigger value as opposed to last year’s own is a different story. If you’re determined to avoid getting a low tax refund and save yourself quite a big amount to spend on important matters, here are four tips you should follow:
1. Know your deductions thoroughly and individually
Generally, the best way to ensure that your returns are declared in the most optimal way is to ensure that you know exactly what applies based on the set standards and what you’ve spent on.
Knowing what particular expenses apply to your deductible costs once you file your documents with the ATO can greatly help in preventing the possibility of missing out on legitimate deductions. By understanding which receipts you’ve accumulated throughout the accounting year can be claimed as an expense, you can maximise your tax returns one slip at a time.
2. Always be organised in the manner of how you keep your records
Speaking of records and receipts, an important factor to consider when bumping up your refunds from your tax returns is to have relevant proof when you back up your claims. The best way to do this is to have organised records.
Being organised when you keep your records and making sure they are as accurate and presentable as possible is one of the most important practices because good records are paramount for successful claims. Although records that you’re supposed to use will depend on your circumstances, it’s always a good idea to keep many slips and receipts than not having enough to file.
3. Keep note of the smaller details and transactions
One of the most common errors that e-commerce business owners make when filing their tax returns is that they overlook the potential returns that lie beneath small-value transactions.
Although they may seem quite nominal at first as opposed to qualified major investments, receipts from smaller transactions can yield more value when accumulated over a year. As troublesome as it may seem at first, taking note of the smaller details and promptly recording their receipts will come in handy when bumping up your refunds.
4. Outsource and accountant as soon as you can
Thanks to the advent of specialisation in industries, e-commerce businesses now have the opportunity to enlist the help of accountants that are well-versed in handling their needs.
Seeing that e-commerce businesses have a slightly unique case when it comes to SOPs for tax returns and maximising refunds, it is best to leave your accounting tasks to a competent expert. Instead of troubling yourself with handling all the different bits and pieces of your tax process, an outsourced professional can minimise the risk of missing out on opportunities for greater amounts of returns.
Although it may seem like a daunting and challenging task at first, handling your e-commerce tax returns and maximising the refunds you can get can be easily done by considering all the right tips. By following the simple, yet effective tips mentioned above, you’ll be able to see tremendous improvements with your tax returns in no time! Looking to give your e-commerce business the competitive advantage it needs when handling its accounting? Get in touch with our e-commerce accountants today to see how we can help you!