The end of a financial year is difficult for many small businesses when the taxman is at their doorstep. Business owners stress because of the complex world of taxes they have to navigate, primarily indirect taxes. However, some tax tips and tricks may help make the most of tax returns without overpaying.
Timely Setting Up of Record-keeping Systems
Small businesses may be overwhelmed when starting the enterprise and ultimately postpone setting up record-keeping systems. However, this is a recipe for disaster because tax information will be disorganized. An efficient tracking system makes it easy to retrieve income and expenses when filing indirect taxes.
Separating Personal and Business Bank Accounts
Small business owners should consider separating personal and business accounts. It simplifies record-keeping and increases accountability on the managers’ end. Having different accounts also makes it easier for an accountant in Canberra to document expenses and identify those eligible for indirect tax deductions, lowering taxable income.
Reviewing helps business owners accurately report their business income and returns. This helps with avoiding penalties and additional taxes owed due to underreported income. In addition, this helps accountants in Canberra identify errors that may lead to overpaying taxes.
Pay Estimated Quarterly Taxes
Sometimes a small business may not fully pay the yearly indirect tax bill; hence it is necessary to consider paying estimated taxes. Spreading these payments minimizes interests and penalties on the business. It also helps in managing cash flow and fulfilling budgetary requirements.
Small businesses that need help with indirect taxes should consult accounting tax professionals for guidance. These professionals have the right tools to assist with bookkeeping and provide real-time insights on expenses and investments.