Ensuring your business meets tax obligations is essential to avoiding penalties and being taxed correctly. Tax compliance can be overwhelming, especially when managing it as a business, so here are our top tips for those new to business…
Management records
Starting with good bookkeeping and records management will help minimise stress and reduce the risk of a backlog of forms, mandatory returns and reports.
Regular review of your records
Don’t wait until tax time or the end of the quarter to review your records. A monthly review will at a minimum mean you can remember what expenses were for, and if you have lost a receipt, you can more likely request a copy from the supplier if you do it sooner rather than later.
Back to basics
Your tax obligations will vary depending on your business and structure but are important to understand what you are up for. If you are starting your own business start with ATO’s business guides to get your head around the basics.
Employ professionals
Seeking professional assistance through an accountant and trusted financial source will not only help to manage your tax obligations but also reduce stress.
Whilst there are many moving parts to tax compliance, there are some key areas you should focus on to begin with:
- Different types of tax that could apply to your business
- Tax registrations
- Tax payments and deadlines
- Tools and apps for keeping business records
Being tax compliant does not need to be a burden. If you keep clean and clear records, manage and review regularly and ensure you have a basic understanding of your requirements then EOFY and tax periods will cease to be a looming cloud over your head.
If you are looking for support speak with our tax and business advisors at Nexis today.
