Seeking tax accounting services or using the Xero accounting software can help you keep up to date with your tax lodgment obligations.
Here are some important tips to keep you on track
Whether you want to cut your tax liabilities for the next financial year or your primary concern is to lodge your tax returns and business activity statements on time, identifying the best processes and practices to keep up to date is a priority for all business owners. Working your way towards organised books and properly filed tax returns and business activity statements are important keys to effective tax compliance. But as a business owner and a tax payer, your tax compliance initiatives do not end there. Here are some important tips to keep you on track:
1. Make sure the information you put in your tax returns and business activity statements are correct. If you notice errors that need to be changed, you may be allowed to lodge an amendment but you might be charged with a penalty.
2. Donating to charities is a good way to reduce your tax bill. If you have made donations to charities within the financial year that you are lodging for, you can claim the exact amount of that contribution provided that the charity is registered as a tax deductible charity with the ATO.
3. Keeping expense claim receipts at hand or getting them in order through systems such as Xero accounting software makes it more convenient to lodge these claims come tax season. As a general rule, business owners like you can claim undocumented expenses worth $300 or less. Beyond this amount, the Australian Taxation Office (ATO) will require supporting documents as proof of your claim. Be sure to keep your records. These can be kept electronically using Xero.
4. If you need help lodging your tax returns and activity statements, you may seek the help of tax agents. You can verify if your chosen agent is registered by asking them to present their Certificate of Registration as a Tax Agent.
Tax compliance is an indispensable part of running and managing your own business. By staying in the loop on the best tax compliance tips, you can be assured that your business won’t get in trouble with the ATO in the long run.
Need help in lodging your tax returns properly? Click below to download a FREE copy of our eBook on effective accounting strategies or check out the HTA Advisory website for more information.
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