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Tax tips for small businesses
It’s that time of year again where many of us turn our attention to tax. Here’s our top tax tips for your small business.
Tip 1 Maximise your instant asset write-off deductions
This year, you’re allowed to write-off business assets you’ve bought up to the value of $150,000 under the Instant Asset Write-Off Scheme. Previously, you were only allowed to write off assets up to the value of $30,000.
Tip 2 JobKeeper payments
Any JobKeeper payments your business has received are classified by the Australian Taxation Office (ATO) as assessable income. However, you can claim any JobKeeper payments that you’ve subsequently passed on to your employees as deductions from your income.
Tip 3 Make sure you have records to back up all your business expense claims
The ATO requires you to keep records of your business expenses for up to five years.
Tip 4 Write off bad debts
If you have any debts that’re unlikely to recover, writing them off as a tax deduction will ensure that you at least get something for them in terms of paying less tax.
Tip 5 Account for your personal business drawings
Make sure you account for any personal drawings you make from your business. You should keep your private expenses separate from your business expenses.
Tip 6 Get your business bookkeeping up to date
Doing your business tax obligations is much easier if your books are up to date. It’s never too late to start doing that and you can hire professionals like us to do it for you if you need to.
How we can help
At Scorpion Bookkeeping, we can help you to get your finances in order so you can claim all of your eligible tax deductions. We currently provide bookkeeping support services to a diverse range of clients in South Australia, Victoria and New South Wales.
We can also help you to implement Xero bookkeeping software to help you. We are a Xero-certified partner.
Contact us today to find out how we can help your business!