Financial management

Key things to do NOW to make tax time less taxing for your small business

- July 1, 2022 3 MIN READ
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It’s the end of (another complicated) financial year, and Shaye Thyer, Head of Accounting at Intuit QuickBooks has some key advice to make tax time less taxing for small business owners and sole traders.

Prioritise getting good advice and support

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 – is one 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.

Small and solo businesses 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 end of financial year and tax preparation period, than those without.

Two women sitting at desk looking at business documents

Streamline processes with online tools

In order to streamline processes, get a digital system in place to 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.

Having a tax and accounting software makes all the difference at the end of the financial year.

4 ways accounting software makes tax time as simple as possible

  • 1. Claim your allowable deductions easily

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.

  • 2. 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.

  • 3. Automate your Business Activity Statement (BAS)

Using accounting software means your advisor can automatically create your BAS summary to review, then check and lodge it every time it’s due.

  • 4. 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 into most accounting software, like QuickBooks.

Business hands using ipad with data - feature

Stay compliant

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 – the new changes to payroll ensure businesses stay seamlessly up to date and 100 per cent ATO compliant.

And the best benefit? The time saved, so you can get back to doing what you love!

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Now read this:

Seven ways to get the best tax return possible for your business

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