Using small business accountants has many benefits. They work on your bookkeeping and save you time, money and effort. However, small business accountants will also inform you of any tax benefits you may be eligible to.
Small business tax planning
As a small business, you need to know the tax rates currently available to you. Tax rates and tax exemptions vary. Even tax filing procedures change. You need to manage several taxes, not just one. Small businesses need to manage income tax, employee tax, sales tax, among others. These vary depending on the business structure (sole trader, partnership, company or trust) and the line of business.
It’s important to find your way around tax regulations as taxes may be differ for different kinds of businesses. For example, if your business is a sole proprietorship, you will just be taxed for your personal income. If your business is a partnership, the partners will pay a pro-rata income tax on their share of the income at individual tax rates. You would need to consider any tax-free threshold as well. If your business is a registered company, it will not pay income tax. Company tax rates may apply with no tax-free threshold in general.
Tax legislation is ever changing. The Government is offering various tax incentives and subsidies to small businesses especially during this pandemic. Each small business needs to determine which ones it is eligible to, apply and lodge before the due date.
There is the temporary full expensing and backing business investments incentive for depreciating assets. This accelerates the ability to claim depreciation deductions to encourage businesses to invest in new assets. The work from home set up has also increased expenses, which may also be claimed as tax deductions. This supports businesses and employees with changed working arrangements because of Covid. The threshold for lower resident tax rates has been raised to reduce the tax burden for more people during the pandemic. Company tax rates have also changed, as did personal income tax rates. There’s also the JobKeeper Payment Program that supports businesses retain their employees.
As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.
You can click here to speak to a business, accounting and bookkeeping firm. We also offer hospitality business consultation and mortgage services. We will give you a call to know more about your needs. We will explain to you how we can improve your business.
We would love to help you formulate investment strategies and streamline your processes to take your business to the next level. Our goal is to help you grow your business, find ways to invest more and increase your productivity.
Sky Accountants Ballarat
Phone: 1300 328 855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Sky Accountants Gisborne & Macedon Ranges
Phone: 03 97444522
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437