One of the most practical and substantial ways to tackle the end of the financial year (EOFY) is by planning and preparing for it. Therefore, we provide some essential tips in this article that will help one stay at the top of their EOFY game. We can assure you that considering and following the EOFY tips suggested by us will help you earn maximum tax returns.
Keep your documents up to date for making the EOFY process seamless, an individual needs to have their essential paperwork organized and nearby. Since people usually have till the end of the month of October to do their taxes, one should have their documents and records of income, expenses, deduction, and assets ready at hand for when the time comes. Even if all your paperwork is spread over the place, people need to have their records organized by July. This will save them from a lot of stress and waste of time.
Some examples of records that an individual might need to keep are:
- Papers concerning the activity statements, tax returns, and employee super contribution
- Receipts for purchases and sales.
- Records of Business Activity Statements (BAS) and GST returns.
Utilize online tools to simplify accounting
If one separates their business banking from their personal banking, it will make both the processes of BAS (Business Activity Statement) and EOFY simpler in comparison. In addition, if an individual is registered for online banking, they can access and use the tools to assist them with daily bookkeeping and gather information for their tax returns.
By doing this, one will be able to capture all their business expenses in a single place and avoid the risk of claiming for a purchase accidentally, which is not connected with their business. Other than this, having a separate business bank account also helps individuals manage their cash flow.
Ensure the correct deduction for expenses
Managing deductions is vital to find out what one can and should claim during EOFY. For example, many people are unaware that they can claim their solar panel system on their tax. To be eligible for availing of this deduction facility, one has to have an ABN (Australian Business Number) and for that be registered as a sole trader or a small business owner with a turnover of fewer than ten million dollars per year.
And this feature can help people like freelancers, entrepreneurs, digital nomads, etc., to write off any business-related purchases with a value of over twenty thousand dollars or less. One such example of significant business-related spending is investing in a solar panel system, which will reduce your electricity bill and provide your immense tax returns.
Solar Secure is a reputed and CEC-approved solar retailer for offering people the best quality and best service providing solar panel and solar power systems. The objective of our endeavor is to provide our clients with a highly satisfactory experience and green energy solar solutions, which will help a company grow and expand over the country in the time to come.
Check the Australian Tax Office (ATO)
The nation’s tax rules are frequently updated by the Australian Tax Office (ATO), and one should often check and keep track of it. A new tax year can have new rules and regulations, i.e., what was acceptable as a deduction the previous year might not be considered the next.
And such cases can be incredibly true for small business owners. Hence they should find the best tax plan which will help them minimize taxes lawfully. Therefore, to stay updated about such rules, it is best for business owners to contact the tax office and confirm the current policies.