Whether you’ve been having a good year or not, tax season will always be a cause for stress. Be it for whatever reason; tax considerations, deductibles, and the like. There are just too many things to think about for one person.
Of course, accounting firms and financial institutions will have an advantage. But for all those who don’t know their way around financial statements, the season is going to be a hard one.
Thankfully, accountants online have shared some tips and tricks for business owners who just don’t have the time to stick their noses in a tax manual.
Isolate and Focus on Each Problem
While it’s common for small business owners to jump from role to role, it can help if you can compartmentalize and focus on the task of working on your financial statements throughout the fiscal year. This way, you avoid creating those backlogs that are the reason for the sleepless nights during tax season.
We’re not saying you should forget about your other responsibilities; rather, make time to make sure that all the financial statements are up-to-date and you’ve got all your reports ready.
Earn Credit When Possible
With the Carbon Tax implemented way back in 2011, it is apparent that the government is keeping a closer eye on how companies do business from an ecological point of view.
Now, this one should be easier on small businesses. If your power requirements aren’t high, or if you’ve got the budget to support it, investing in a solar power kit for your office might be a good option to benefit from those tax incentives.
It doesn’t even have to be solar energy. As long as it’s a renewable form of energy, you can be sure that you’ve got some benefit to gain tax-wise. Keep in mind that the Australian government is also willing to shoulder some of the cost of installing these renewable sources of energy as per the Small-Scale Renewable Energy Scheme.
Deduct What You Can
This goes for anyone; don’t ever say no to help. This includes assistance from the government when it comes to decreasing the total tax to be paid by your company.
Now, don’t let the prospect of having to do maths scare you. The Australian Tax Office has published a mobile app that will let you compute for any possible deductions on your taxes. How’s that for a break?
Consult When You Have To
Lastly, don’t forget that there are people who do this for a living. Registered accountants have done the work; they’ve studied for it, practiced their trade, and have become experts at what they do.
Experts in this field are able to figure out where to add or subtract to make the most out of your payments. We’re not telling you to give up working on your taxes. What we’re saying is that amateurs, as hard as they work, will never really know all the ins and outs of tax filing and payment.
Conclusion
Accounting is vital to the success of any small business. We hope the advice that we’ve provided proves to be useful when it comes to helping you navigate the ins and out of your industry. With the help of these tips, you should be able to avoid or circumvent any issues that you encounter.
If you need more help with eCommerce accounting, we here at eCommerce Accountant have got your back. We can provide your business with the services that you need to maximize profits. Book a strategy session and start your partnership with us today!