If you are a business owner who typically only sees your accountant once a year, now is the time to make an appointment to see them.
Investing in your relationship with a trusted advisor – an accountant or bookkeeper – isone of the best ways to maximise your success in small business and help ease and manage the burden of tax time, so you can enjoy getting back to business.
With changes to tax-related legislation over the last 12 months, working closely with a professional advisor during tax time will help take away that uncertainty and stress, as well as allay any doubts about what you can claim.
SMB’s often think they’re not big enough to warrant connecting with an advisor or worry about the cost. But what we now know is that small businesses with an advisor relationship are three times more likely to feel positive about the upcoming end of financial year and tax preparation period, than those without, according to Intuit advisor research 2021.
Streamline processes with online tools
One of the first things to do is get a digital system in place, in order to streamline processes, give your business the edge and get back more time (and relief!) at tax time.
Building out digital capabilities and making use of software and digital tools will provide business owners with better oversight of their finances, increased speed in getting paid and ensuring tax deductions are maximised. It also means you’re less likely to make an error or omission.
Here are four ways QuickBooks makes tax time as simple as possible so SMB’s and sole traders can focus on what they do best – running their business.
- Claim your allowable deductions easily
Using QuickBooks Self Employed, you can easily photograph your receipts so they appear in your accounts instantly as a transaction. This makes it super simple to categorise your expenses as business or personal, so at tax time, you know exactly what you can claim as tax deductions.
- Track your goods and services tax (GST) automatically
Whether you lodge your GST monthly, quarterly or annually, Intuit QuickBooks allows you to automatically calculate your GST as you go, so when tax time comes, all you need to do is review it and approve it.
- Automate your Business Activity Statement (BAS)
Using QuickBooks means your advisor can automatically create your BAS summary to review, then check and lodge it every time it’s due.
- Simplify lodgement with compliance software LodgeiT
When your tax return is complete and it’s ready to lodge, we make it as easy as possible for your advisor with LodgeiT, which integrates seamlessly with Intuit QuickBooks.
Single Touch Payroll (STP) is a way for employers to report wages, PAYG and super. Instead of waiting until the end of the financial year, payroll info is reported every time staff get paid.
In January the ATO rolled out STP Phase 2, with Intuit QuickBooks introducing the new reporting changes across its payroll platform to ensure businesses stay seamlessly up to date and 100% ATO compliant.
Small business owners wanting to maximise tax deductions this financial year should also consider discussing with their advisor if bringing forward expenses, paying superannuation and staff bonuses before June 30, or writing off bad debts that could benefit their tax position.
Shaye Thyer is FCA and head of accounting at Intuit QuickBooks.