While 2018 has been a whirlwind year for taxation, 2019 still seems to be one of the biggest years for small businesses in terms of taxes. Here are some things to consider to get ahead of your EOFY 2019.
- Small and micro businesses may have to step up their game this year if the extension of the STP system to employers with less than 20 employees will be implemented. If the STP extension becomes a law, all Australian businesses will be required to comply with the STP reporting system starting 1 July 2019. If you will be affected by this, now may be a good time to look for the most suitable small business accounting software for your needs. Note that the ATO will soon introduce several low-cost cloud accounting solutions for STP compliance so consider that too when making a decision.
- Now may also be the best time to think about your tax position this year. Doing this early will give your ample time to make adjustments when necessary. You still have several months to plan and to avoid any surprises in July, so start getting your 2018 taxes completed as soon as possible.
- Businesses can access the government’s instant asset write-off this year so take full advantage of this. You may be able to save a good amount of money if you do it correctly.
- Business owners may also need to re-examine their business to make sure they are paying their employees correctly. Some made costly mistakes last year by not complying with the employment law. Others experienced financial problems for not having planned their staffing requirements properly. Make sure you prepare early on to avoid these problems.
There are several important things to consider now that tax time is drawing near. The ATO will again be focusing on expenses declared and deductions claimed this year. The ATO’s data sharing capabilities are becoming more powerful by the year and it’s safe to assume that they will be able to obtain more accurate information from plenty of locations this year.
As you look for different ways to grow and improve your business, seeking professional advice from a business consultant could prove to be an important and helpful decision.
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