We've jotted a down a few of our hottest tips when it comes to tax time this year for sole traders and small businesses. Check them out:
The Federal Government’s Budget for 21-22 included some positive initiatives for sole traders and small businesses. We even wrote about it.
On top of these, it's critical to know all of the deductions that you're allowed to apply for your business. You can find a comprehensive list on the Australian Government site here.
If there is an asset that will really help your business grow and thrive (we had to do it somewhere) consider whether it's time to make the purchase now. Doing so can help lower the amount of tax you’ll need to pay by effectively reducing your total taxable income.
If accounting isn't your thing, and compiling your tax return causes you stress, it may be time to consider finding an account to work with you. We know heaps of people, and can connect you individuals in the Thrive community that can help. Email us here if that sounds like you.
When Thrive is ready for launch, you will be able to store all of your receipts and information needed to submit your tax. Until then, back it up on a cloud-based storage solution. You need to keep all business related receipts for 5 years. It's a good idea to scan these somewhere as a digital version as they can get lost and fade over time.