3 Top Tax Tips
Tax is a necessary part of life, but one which you can manage, control, plan for and minimise. Many businesses have been struggling to pay their taxes on time, and manage the cashflow implications of tax. It was all made harder when GST came in and businesses became unpaid tax collectors for the government. This further increased the paperwork and tax management burden for small businesses.
To assist businesses, we have compiled Kenna's Top 3 Tax Improvement Tips.
1. Set up the right business structure to minimise tax. This suit your circumstances now and in the future, and be
understandable. Unfortunately we see many new clients who have spent money on unnecessary or incorrect structures,
and who don't understand what their prior accountant set up for them (This can cause many avoidable adverse tax
2. Make sure you claim all the tax deductions you are entitled to. The keys here are to understand what you can claim
personally and for your business. Make sure you work with the accountant on a regular basis to let them know what
you are up to financially and business wise. For example, an interstate or overseas trip if structured right may allow you to
claim tax deductions for your airfares, meals provided to employees could become tax deductible in the right circumstances.
or car tax deductions can be a lot higher if you fully utilise the business use rules.
3. Know and plan for your future tax payments. Every business owner from startup to experienced should know their expected
or estimated tax payments for the next 18 months. Cashflow can then be planned to ensure funds are available to meet tax
payments, or action can be taken early if cashflow doesn't allow this. Often we have clients putting money aside for future tax
commitments to make it easier to manage their business operational cashflow.
While the above 3 tips may seem like common sense, the tax laws are not easy to follow and understand. A large number of the new clients we help often have never had their accountant work with them on these 3 key areas. If you feel tax is controlling you and there must be a better way, call Kennas and we can help you regain control.