An overview of Small Business Tax Issues

Author: Lester Ong

Tax season is a stressful time for everyone, especially for small business owners who often have more complicated financials to work with than individuals. There are around 4 million small businesses in Australia which account for about 99% of businesses in Australia.

A report released by ATO shows that small business debt formed two-thirds of the total collectable debt. Many small organisations trouble to manage their financial commitments and end up in debt. Whether you are a newbie or have been into the business for years, some of the most common mistakes can have a potentially devastating effect on your business’s bottom line. It is advisable to seek advice from Tax Lawyer Perth to avoid costly tax issues

So, what are the chief concerns of small business owners during the tax period? Take a look at these biggest small business tax problems so that you can address them proactively.

Timing

Among all other tax problems for a small organisation, timing is the most significant issue. While you are struggling between long-term management issues and daily operations, adding a heap of tax considerations at the beginning of the year, make it even more challenging to manage your time.

Tax deadlines are essential to ensure that you aren’t missing anything crucial for the ATO. There are specific deadlines that need to be met for payments, filing, and more. Don’t run the risk of facing an ATO audit in the future! Hire taxation lawyer Perth to avoid unnecessary debts.

Record keeping

There are a lot of things to keep track of in a small business, including revenue and expenses. Every business should have a receipt for all the purchases so that you can access them easily. But, for small businesses when things get busy, paperwork and bookkeeping are often the things that fall to the backburner. Keep in mind procrastination can lead to serious issues in the future.

Deductions

Small businesses can also be confused by the nature of deductions – what counts as a business expense is not always clear. The best solution is to work with the professional to help you figure out the exact requirements.

Here are three simple actions you can take to make your life much less stressful

  • Plan ahead – Planning ahead will help manage your time and file before the deadline.
  • Work with a professional – Even though if you are experienced in filing taxes, it is a good idea to work with a tax litigation attorney in Perth as they know things you don’t and can do the work efficiently.
  • Keep things organised – Keep your records organised throughout the year so that you can save time during the tax season.

The author is a skilled Tax Lawyer in Perth who specialises in tax matters. Along with a team of lawyers, he provides expert legal advice and representation to help his clients manage their tax affairs and achieve great results. Visit https://www.munrodoig.com.au/ for more details.