Happy EOFY! People not in the accounting trade will add the ‘S’ at the end, signifying the glorious time when prices on normally unattainable goods get slashed drastically. For accountants and business owners though, this isn’t a time to leaf through shopping catalogues. We knuckle down and start getting returns together. If you are concerned about doing yours, read through the tips below.
Learn about concessions
The Australian Tax Office has a number of concessions available to business owners, from deductions to capital gains tax.
Shop the sales
Yes, we are enabling your shopping habits. Purchasing office equipment and other items you need for your business before June 30th are eligible to claim on your return. You need to keep the receipts as best you can and record your expenses in one place, such as a spreadsheet or an app.
Know what is business and what isn’t
It’s business-related if it’s used at work. Think computers, call-outs to the office to fix the electricity, air conditioning and the fridge, and even the cleaning expenses.
Write-off vs depreciation
Little items are indeed worth some money. The rubbish bins, smoke alarms, shelving and other small items around the house are examples of what you can claim immediately. However, these items must be used in your business, like an investment property or an office.
Tax depreciation happens when you purchase something over $300. The value decreases over time. This is another example of why it’s important to keep receipts. You need the date you bought the item and the original purchase price. The online tax form will make the calculations for you.
There’s an app for that
People live on their phones so it makes sense to put it to some good use, other than scrolling through our Facebook feeds. Some apps are free, lots are paid, but they’re handy tools if you don’t like having any loose ends come tax time.
- ATO – this app gives to access to the tools and calculators found on the website, ABN lookup and expenses sections. The latter includes individual and business record-keeping.
- Squirrel Street – formerly known as Shoeboxed, this app records receipts and documents in a cloud. It can be used by both accountants and clients to keep track of incomings and outgoings. It integrates with other software like MYOB and Dropbox.
- Xero Touch – This app is part of the Xero accounting software used to run day-to-day accounting. This app is extra handy if your accountant has access, and they can check expenses from anywhere.
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