One of the certainties of this world is taxes. It’s that time of year when everyone is busy scrambling to get all their paperwork in order – and amongst the chaos, there may be certain important bits of information you could possibly forget. Here are the important things to think about now, so that when that season comes by, you’re ready and organised.
Superannuation and GST
During the tax season, you will need to ensure that your Business Activity Statements (BAS) and Superannuation Guarantee (SG) contributions are up to date.
The contributions you make on behalf of your employees for their superannuation will have to be reported to the ATO in accordance with your tax return. There are online calculators you can use to work out precisely what your responsibility is.
You are required by law to record and report your monthly or quarterly business activity statements. You can always check the ATO Business Portal to see if you are up to date with your tracking of your PAYG and GST.
During tax season, you are also required to report your accurate income, expenses and assets.
Businesses must provide a full record of all money coming in. All revenue made from all avenues including invoices paid, money made from investments and even shareholder dividends paid. However, if you sell an asset, it is considered Capital Gains Tax, which might mean that you make a profit from the transaction. This must be reported too.
It is essential to record the deductions you’re entitled to make as part of expenses and so on, which means a lot of businesses end up paying more than they are required. These are divided into operation and capital expenses for which you lose money, but for which you can claim returns. For example, operation expenses include things like office stationery, petrol, and wages. Capital expenses are the machinery and equipment you pay for if rented or in need of repair. Keep these receipts so that when you need to submit your taxes, you may end up winning rather than losing out.
Check your tax regularly
Mistakes and miscalculations can lead to serious issues with the tax office. Ensure you’re on top of your tax all year round, so that should an issue come up, you and your accountant are well prepared to handle it.
These can help you calculate how much tax you need to withhold from salary payments. Since these are updated by the ATO, it is important to check them often to ensure you are up to date with all requirements.
The best way to stay on top of your taxes and finances throughout the entire year is to partner with a certified practising accountant. Contact the professionals at Stones Sharp today, one of Melbourne’s leading tax experts.