Site icon Fictionistic

The Complete Guide For Small Business Tax Return 2022

Business Tax Return

As a small business owner, going through the tax season might be scary for you. Taxation laws in Australia are very strict, and failing to abide by the same can attract fines and penalties. So, you need to ensure you know all about taxation like the back of your hand to avoid any issues in the tax season.

If you cannot handle the responsibilities of maintaining your company’s tax all by yourself, it is recommended you hire a tax accountant in Perth to help you with the tax return of your business in Perth or its surrounding regions.

The United States also has a complicated tax system. Expats need to know about US tax returns in Singapore and have to pay taxes on their worldwide income and assets, even when they are living abroad.

Now let’s understand in depth all about small business tax returns.

All About Tax Deductions

Tax deductions are an effective way to save valuable funds and reinvest them to grow your business. So, it becomes important you understand tax deductions properly to save every possible dollar. You claim the deductions in the annual tax return so that you get back the funds your business is eligible for. Let’s understand how tax deductions work for small businesses.

Rent And Utilities

When you rent physical space for setting up your office, the rent expenses and other utility expenses for the office come under deductible business expenses. The utilities can be electricity, water, internet costs, telephone, etc. If you are running your business from your home, you can still claim some of the expenses as you are using the space for business use.

Equipment

You surely require a lot of tools and equipment to run your business. Fortunately, you can deduct their costs as well. These tools can be things like laptops, printers, fax machines, desks, pens, paper, vehicles, and even software subscriptions and training courses. For an expensive piece of equipment, you can either choose to deduct the entire value the same year you purchase it or distribute the cost over multiple years.

Payments And Salaries

While filing your small business tax return, you can claim the deductions for payments to your contractors and vendors and also for the salaries and other benefits you provide to your employees.

Marketing Expenses

Marketing is essential to any business. With the benefit of deducting the marketing and advertising expenses, you do not need to worry. You can deduct the costs of your advertisements on social media paid ads, website domain costs, business cards costs, etc. So, remember to include all the marketing expenditures you do around the year to maximize your tax return.

Prepare For The Year-End

Year-end for a business owner means closing their books and taking stock of their business. A lot of things need to be considered apart from resolving the books, preparing the tax documents, and planning for the upcoming year. Let’s see the key factors to ensure a hassle-free year-end.

Things To Do Before You See Your Accountant

If your books are not properly organised, your accountant will have a hard time managing them. So before you visit your accountant, remember to:

Reconciling The Accounts

Go through all the entries in your bank account, and credit card statements are correctly included in your accounts book and vice versa. It is critical because you need to ensure you are working with accurate information and not missing out on anything.

Documents And Records You Need

Once your books are all okay, you need to focus on the documents, reports, and records you need to bring to your accountant. It is better if you bring your previous year’s tax return, which contains vital information like your expenses, income, and the deductions you claimed. Along with it, you also need to carry financial reports like balance sheets, income statements, business expense records, and detailed tax documents.

Ask These Questions To Your Accountant

You should not just hand over the documents to your accountant and think your part of the job is done. To get a proper insight into your company, you need to ask your accountant the following questions:

Filing Your Taxes

It is always better to start filing your tax as soon as the year ends so that you can focus on more important sides of your business. For filing your business tax return, it is best if you hire a tax accountant who would strategically go through your books and accounts and file your return precisely. They would also prevent you from attracting any tax penalty and maximize your deductions and tax refund.

You need to furnish your accountant with all the necessary income and expense details, tax forms and documents so that he or she can prepare your return accurately without any error.

Must Read

Exit mobile version