5 Smart Tax Tips

In the world of small business, mastering the art of financial controls can be quite a challenge and that is where Hills Accountants in Hobart can help. Small business owners have enough to do focusing on their business and often maintaining financial records gets pushed to the back-burner. Taxes, in particular, come with their own maze of complexities, leading to the possibility of overdue tax returns.

As business owners maneuver through this labyrinth, some missteps are more common than others. By being aware of these pitfalls, entrepreneurs can better safeguard themselves from unnecessary financial stress and potential legal complications.

Not Keeping Accurate Records

Every receipt, every invoice, and every transaction plays a part in the financial business story. Failing to keep comprehensive records can often mean inaccurate tax filings that take time to lodge and delay refunds. This also makes it more difficult to track the financial health of the company.

Investing in reliable accounting software or employing an accountant can ensure that records remain impeccable and accessible. At Hills Accounting we recommend XERO and MYOB accounting software.

Mixing Personal and Business Finances

Combining personal and business finances can lead to ambiguous financial statements. It might seem convenient, but this blending often results in headaches during tax season, as distinguishing personal expenses from business costs becomes a tedious task. To simplify things, maintain distinct accounts for your business and personal expenses.

Missing Deadlines

Procrastination has no place in the realm of taxes. Delayed submissions can lead to heavy fines and even potential audits. To circumvent this, it's prudent to mark tax deadlines on calendars. That said. delegating the responsibility for this to a tax professional will really help...and that is where Hills Accounting Comes in.

Not Understanding Deductibles

Tax deductions can be a boon for small businesses, reducing their taxable income significantly. However, being unaware of what can be claimed is a missed opportunity. Regular consultations with your accountant can enlighten business owners about potential deductibles, ensuring you don't pay more than you owe and that you get all the refunds to which you are entitled..

Handling Taxes Alone

While some entrepreneurs might feel capable of managing their taxes, the intricate nature of tax laws suggests it's often beneficial to seek professional guidance. Tax consultants not only ensure that filings are compliant but also offer advice on optimizing returns.

By not tripping on these tax steps, small businesses can enjoy smoother financial sailing and focus their energies on what they do best: innovating, serving their clients, and growing their enterprise.

At Hills Accounting, Hobart we can provide you with the right financial strategies, so you can solidify your financial base and make your business venture more successful.

For more helpful information, email us today at admin@hillsaccounting.com.au or Phone 03 62737800