It’s that time again – tax time (groan)… But tax time doesn’t need to be a stressful time of year if you use our top tax time tips to help you save money and stay on top of your business earnings.

1. Don’t leave it till the last minute

It’s so easy to just ignore it and pretend like it’s not there. Trust us, we do this too! But you’re simply making more work for yourself come tax time. If you have a system from the start and stick to it, it will help you to keep on top of things and make sorting your tax a much simpler task.

2. Keep all your receipts

If in doubt, keep it. Start a file for all your receipts and if you’re super organised, keep a spreadsheet that correlates to your receipts detailing what they’re for, the date, the amount and the deduction category. Make sure you update this once a week so it doesn’t get out of hand.

3. Back up everything

We talked about keeping all receipts, but it is also a good idea to back them up in the cloud. Not only does this safeguard them from being lost, it also means you can access them from anywhere, at work, at home, out and about. There are also many iPhone and Android apps as well as software applications including major accounting software like Xero who let you conveniently take photos of your receipts and store them directly in your accounting app or software.

4. Keep on record keeping

As we said in the last point, if you don’t keep up-to-date records and update them each week, it will become a monumental pain in the ‘assets’ come tax time. Set a specific time each week as your ‘tax time’ which you dedicate to updating all your tax records. Doing so will not only become a habit for you but it will also make your life so much easier come tax time.

5. Know your deductions

We all want to pay less tax, right? Well knowing what you can claim in deductions can help you to minimise the amount of tax you are required to pay and therefore help you keep as much money in your pocket as possible. Allowable deductions will differ depending on your industry and business setup, so make sure you take some time to read through the ATO’s Sole Trader Deductions page to determine which ones are applicable to you and your business.

6. Get expert help and advice

If you don’t already have a good accountant, it’s a good idea to engage one for tax time. Business tax can be a lot more complex than PayG tax, therefore it is advisable that you consult an expert. Sometimes they can even give you suggestions on how you can lower your taxable income or suggest deductions that you are entitled to claim. Before engaging an accountant, make you’re your accountant is a member of a professional body. Members of these bodies have an accredited tertiary qualification and must comply with professional standards. It is also important to know that only registered tax agents can prepare and lodge tax returns. Check if your accountant is registered on the Tax Practitioners Board Register. For more information on finding an accountant, visit the MoneySmart website.

7. Invest in business-related assets to reduce your tax

There are many types of business assets that you can purchase to help your business thrive. Doing so prior to tax time can help to reduce your taxable income. You can also utilise a variety of business finance options available to help you maintain your cash flow while helping to reduce your taxable income.

You can finance a wide variety of business assets such as vehicles, technology, plant and machinery and business equipment. For more information on business finance options to suit your business, speak to the friendly team at Loans For U today on 1800 538 287 for an obligation-free chat.