We know 2020 has been a year like no other offering an unprecedented disruption to the way in which we do business, and as another end of financial year looms, it may be the last thing on your mind. IM Business Solutions has collated some – what we believe to be – helpful information for small businesses. We want to do our bit to make life as a business owner a little easier this end financial year.
IM Business Solution’s first tip – get familiar with ATO website! The ATO knows small businesses are the backbone to Australia’s economy;
Assistant Commissioner Mathew Umina says that “Small businesses in Australia contribute more than $380 billion to the economy each year and are an essential driver of economic growth. That is why the ATO is committed to supporting small businesses and making it as easy as possible for them to understand and meet their tax obligations at tax time”.
The ATO website offers an abundance of information and helpful tools to support small businesses with all things tax. Additionally, the ATO Facebook page is another engaging platform to stay informed and updated 24/7 – it could also be a more effective way of chatting with the ATO and hopefully avoiding the waiting game for replies.
Next up, and one that us bookkeepers are all over – compile those documents and records. Not only having a clear record of all business-related expenses, but also ensuring your payments and debts are in order, is essential when it comes to having a stress-free tax time.
As a small business owner, it’s important to know what tax concessions apply at tax time.
“There are also concessions that allow new small businesses to claim an immediate deduction for start-up costs like professional, legal and accounting advice,” Mr Umina said.
Check out the ATO’s business concession table to see what you may be eligible for based on your businesses annual turnover.
Our final tip, most relevant for 2020 as we experience a higher demand for working from home – know what home office expenses you can claim. From electricity and gas bills, to home office furniture and stationery, you could be in a position to claim more than you did previous financial years. Again, the ATO has an informative page offering advice for running your business from home.
As specialists in bookkeeping, our top advice for small businesses would be to make sure your ducks are in a row all year long. Don’t wait until the last minute when the end of financial year hits you and you become busier than ever. Get in touch with IM Business Solutions so we can organize your ducks and keep them in line, all year long.