Seek tax accounting services to assist you with tax compliance. This is vital for your business planning strategies.
According to a tax compliance study conducted by the Revenue Law Journal, most taxpayers have little or no knowledge at all when it comes to tax penalties. This result was established regardless of the level of education of the taxpayer.
As a taxpayer and a business owner, this study is a reflection of how important it is to comply with your tax liabilities so as not to face tax penalties.
At this point, focusing on keeping your tax bills down is one of the vital keys to tax compliance. The question now is, how can you reduce your tax bills while remaining compliant with tax laws?
Here’s a list of tips and techniques to give you a good headstart:
1. Claim all the necessary deductions
There are quite a number of tax deductions that your business is eligible for. The size of your company, number of employees and your chosen business structure are just some of the factors that affect your taxes. Try to figure these out to avail all the deductions you are qualified for.
2. Keep all your invoices and receipts
As your business grows, your set of books also becomes more complex. Do not make this an excuse to lose track of all your invoices and receipts. Remember, these documents are important in proving your claims once disputes or conflicts come up.
3. Donate to charity
Did you know that you can reduce your taxes by donating to charity? Before the financial year ends, choose a charitable foundation you want to donate to. This way, you get to help other people while keeping your tax bills down.
4. Pay your taxes on time
Paying your taxes is a very important matter. By paying your taxes on time, you can rest easy come tax season knowing you have already fulfilled your tax obligations.
5. Seek help from tax experts
Alongside the four tips mentioned here, seeking the help of a tax accountant is also recommended. A tax accountant can assist you with the more complicated tax planning strategies such as choosing tax effective investments, maximising retirement contributions and planning your estate.
It takes a lot of focus, expertise and experience to plan your taxes well and to make sure that you are complying with all your tax obligations. Can you handle all of these on your own? If in doubt, it might be better to consult with a business and tax advisory firm to help you with your taxes. For more questions about tax planning, you may get in touch with our qualified advisers at https://www.htaadvisory.com.au/.
