With FY23 around the corner, it is only fitting to talk about tax obligations. As a business, you are required to meet obligations to the Australian Taxation Office (ATO).
Meeting your obligations to the ATO is essential – if you don’t meet them on time, you could be facing some hefty penalties.
Here are my top tips on how to manage them effectively:
Liability planning
Whenever you receive a payment that has not yet been taxed, you’re going to need to meet this obligation at some point. I always recommend setting up a separate bank account for your liabilities so that when it comes to the end of a quarter or reporting period you’re not surprised by the amount owing.
Make prepayments
Did you know that you don’t need to wait for a bill from the ATO to make a payment? A great way to manage your tax is to make prepayments; you can make them at any time as often as you like.
Manage cash flow
If you’re struggling to meet your tax obligations on time, it could mean you’re managing your cash flow poorly. Keeping on top of your cash flow will not only help with tax, but other financial activities such as PAYG and super if you have employees.
Keep business records
The secret to all things business is maintaining good business records. Now that doesn’t mean you should spend hours making them look pretty, ensure they are accurate and most importantly up to date. Not only will you be aware of your upcoming tax obligations, but business records will help to make those key business decisions.
Seek expert advice
You can’t do it all by yourself! If you’re struggling with tax obligations, reach out to a tax professional such as a bookkeeper or accountant. BONUS TIP: make sure your tax agent is registered with the Tax Practitioners Board (TPB).
And if tax time isn’t your thing, our team are here to help! Contact IM Business Solutions should you need any advice or support for your business.
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