10 small business tax deductions.Article by Emma Warren
There’s no greater feeling than being able to make it rain with a hefty tax return. Every Australian wants to save as much tax as possible. It’s in our nature to want the extra dosh.
As a business owner, saving plenty of tax is a great way to give your business an optimal chance of success.
Thankfully, Australian businesses can claim a number of tax deductions over the financial year. Depending on the size and type of your business, you could be able to claim deductions in the following ten areas.
Okay, okay. We can admit that the last one is quite niche. However, the first nine are applicable to many industries. When you manage to identify all of the qualifiable expenses within those ten areas, you can score yourself a decent return.
It is important to recognise that each of the deductions must be recorded and reported in very specific ways. When claiming car expenses, for example, you may be required to keep a logbook or calculate cents per kilometre according to specific formulas. In the case of travel expenses, you will need to keep a travel diary. There are also particular rules relating to what aspects of travel can be claimed, and things that cannot.
In regards to claiming depreciating assets, you will only be able to make a claim on items that genuinely have a limited life expectancy. This could include machinery and equipment, motor vehicles, furniture and computers.
The Australian Tax Office (ATO) website provides further details on the rules surrounding business-related expense deductions.
A systematic bookkeeping system is vital for being able to retain as much bang for your buck at tax time. When conducting your bookkeeping, it is crucial that you: keep records of all expenses and report all income/deductions when they are due.
As a modern bookkeeping solution, Rumpel stays atop all of your bookkeeping needs and ensures you have documents that are neat and tidy. We work directly with your tax accountant, so when it comes to tax season, we can pass your books off to them and they can do the hard yards of getting you the best return possible.
Start a free trial with Rumpel today.