There are three constants in life: death, taxes, and dying slowly and painfully as you try to get your business taxes together! It’s a process no entrepreneur wants to deal with, yet one you cannot avoid. Business owners hate paying taxes because it feels like you gain very little out of it. You put in a year of hard work, then shift off a percentage of your earnings to HMRC. It feels like you’ve been robbed, particularly when you get nothing in return. Well, that’s more of a political discussion for another day and not something we’ll get into right now!
Instead, let’s think of ways you can save money on business taxes with the help of business tax accountant bondi junction. Yes, it’s possible, and yes, it’s also legal. While some companies undertake illegal means to reduce their tax bill, you’re about to see three ideas perfectly within the confines of the law:
Keep track of every transaction
Step number one; make a note of every single transaction that goes through your business accounts. This includes all your purchases and all the money that comes into the company. Why is this important? Because it will give you some concrete data that shows your income and outgoings. From here, you can easily figure out where your tax deductibles lie, adding them all up. Many businesses pay too much money because they go back through the year and try to find each transaction. Naturally, you’ll miss many, which means you miss out on various tax deductions. Tracking transactions as they happen will keep everything organised and easy to go through.
Hire some professional help
If you have a background in accounting and finance, it’s okay to handle all of this on your own. Presumably, you have the knowledge required to understand the ins and outs of a tax return. However, most business owners don’t come from this background, so it’s all new to you. In which case, accountants become your best friends! An accountant will look at all of your transactions and help you save as much money as possible. They work within the law, so there’s no worry of any illegal mishaps. It’s simply the best way to save money on a tax return!
Make purchases at the right times
Lastly, be careful when making big business purchases. Do you need some new equipment? Buy it before the tax year ends. This way, you can factor it into your next tax return. For example, buy something in March of this year, and it will be put on your tax return for 2019/20 in January 2021. However, if you bought it in May 2020, you won’t see the tax deductions until January 2022! It still counts as a business expense, but you have to wait a lot longer to reap the rewards. For small businesses with a low success rate, you can’t afford to wait that long.
Taxes are very confusing and very annoying. However, you can lower your tax bill by making a few smart decisions. The three tips listed above are legal and can help you save a mini fortune.