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2022 Tax Return Tips for Small Businesses

Tax time is just around the corner and to get the most out of your return, it’s time to get your financial records in order. For small businesses, this can be a difficult process and one that’s hard to navigate if you’re not a small business tax professional. To help you get the most out of tax time, our team at M.A.S Partners has a few tips from our professional small business accountants to maximise your tax return potential.

Instant Asset Write-Off
Purchased assets for small businesses which cost under $150,000 are eligible for an instant asset write-off, meaning assets like vehicles or equipment can be deducted from taxable income to increase your claims. Several assets can be deducted if they are under the threshold, depending on when the asset was first installed or used as assets must be used before the tax deadline. Depreciation is another factor excluding fast depreciating assets like plants so to make sure your assets are eligible, contact a small business accountant to assess your assets.

Other Deductions and Expenses
While tax deductions for business expenses like travel, utilities and insurance are commonly included for lodgement, you can maximise your returns for other lesser-known expenses. These can include costs for advertising, charitable donations and work from home expenses. If you’re studying to further benefit your business, this can also be deducted with fees, books and computer equipment adding to your tax return. However, it’s important to keep records of all your purchases for proof and not to overestimate your expenses for a larger return which can result in penalties. For the best small business tax advice, a professional business accountant can highlight the ways to increase your tax deductions without penalties from the ATO.

Digitalise your Records
If you haven’t moved to digital invoicing or receipts, it’s time to streamline your documents. Accurate financial reporting is an essential part of maximising your tax return and avoiding harsh penalties. Having a digital record of invoices and receipts makes it easier to reconcile payments and cross-check your records when it comes to tax time. It's also a great way to save money by reducing the costs of paper and printing. Invoicing software like Xero also saves time by allowing you to track invoices owed and incoming cashflow on an easy-to-use dashboard but can become confusing when your business starts to grow. A small business accountant can help assess your financial records to eliminate errors and streamline payments.

Talk to a Tax Professional
M.A.S Partners is Australia's original accounting firm in Sydney with more than 55 years of experience in helping small businesses achieve their business goals. We’re experts in tax return lodgement and can provide accurate information to make tax time easier to allow you to focus on your business. To find out more about our tax lodgement process, contact our professional team here or call us today on (02) 9211 5000.

 
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