This is a guest post from Laing Business Solutions. They are a Brisbane-based accountancy and business solutions company offering tailored packages and top notch support for your business.
Don’t make tax time too taxing
In Australia we pay tax and that is a good thing. With tax we buy civilisation – we are able to have essential services that make a difference to our everyday lives and to the communities that we call home.
However, in business it is essential that you work with your accountant to ensure that you pay the right amount of tax – in other words the amount of tax that you legally must pay to meet your obligations.
5 simple ways to reduce your tax bill
1. Tax Planning
It is important to plan your tax. Any successful strategy is built on taking the time to get it right, so start working with a tax professional as soon as you can, so that you have the most time available to you to get your plan right and to execute the tax minimisation strategies that will benefit you and your business.
And it is important to start now, you only have a quarter of the financial year left to get your strategies planned and executed. Take the time to plan, it can save you money.
2. Instant Asset Write Off
Are you thinking about investing in plant, infrastructure, equipment, vehicles, computers, iPads? Planning your purchases to best take advantage of incentives, write-downs, depreciation and financial situation can make a difference to your tax obligations, particularly for small businesses owners who can benefit from the Instant Asset Write Off of up to $20,000.
If you are going to purchase something, it makes financial sense to make sure that you get the most tax benefit from your expenditure.
3. Branding & Marketing
Is your business’s image looking a little bit tired and in need of a refresh? Undertaking a rebrand is not only a smart way to boost your marketing, to connect with new customers and to update your profile, it is also a cost that can be leveraged at tax time.
Stationery, business cards, banners, signage, vehicle wraps, workwear and much more can all be accounted for by a finance professional to leverage against your potential tax bill. These guys are good!
4. Paying Your Bills
When was the last time you looked at exactly what your business buys and when?
By reviewing purchases and looking at how you can move costs within your financial cycle can make a significant difference to your operation’s tax requirements. For example, can you pay annual bills, insurance, web hosting etc, up front and in this financial year rather than next?
Doing good can also help minimise your tax obligations but the organisation you are helping has to be registered as a deductible gift recipient. As business owners we’re often the backbones of our sporting clubs, local charities and community groups and as a result there are tax breaks for the work you do in your community.
A deductible gift recipient (DGR) is an entity or fund that can receive tax-deductible gifts. There are two types of DGR endorsement:
- An entity that has DGR endorsement in its own right
- An entity that is only a DGR in relation to a fund, authority or institution it operates. In this instance, only gifts to the fund, authority or institution are tax deductible
About Laing Business Solutions
Andrew Laing, the founder and director of Laing Business Solutions, has a Bachelor of Business (Accounting) from Queensland University of Technology, is a member of CPA Australia and has significant experience in corporate accounting.
After extensive experience in management accounting and business partnering in large organisations, Andrew decided to make a real difference and provide this advice to help business owners to grow and thrive through the provision of smart, practical and expert advice.