Is your business ready for tax season? For small businesses, making sure everything is in order can be overwhelming – but, the earlier you begin organising and preparing your financials, the better. Not only will this make lodging your tax easier, but it can also give you an idea of how the small business tax rate and what you owe will impact your cash flow.
To help you get on track for a stress-free tax season, use these small business tax tips.
- Streamline your accounting with the right software. If you aren’t using small business accounting software yet, now’s the time to start. Set up your business accounting software and invest in training to understand how to use it properly. This upfront investment will save you a lot of time and hassle down the road.
- Create a separate business bank account for GST and income tax. Instead of keeping all your business funds in one account, create a different account for your tax obligations. This makes it much easier to ensure you have everything ready for when you need to pay your taxes.
- Stay up-to-date with new changes. The small business tax rate has been the same for the past three years: 27.5 per cent for normal income tax. However, in 2020, small business tax in Australia will be a little different for some. If you’re a small to medium-sized enterprise that was affected by the bushfires over the summer, you may be entitled to a deferral or other assistance.
- Talk to a qualified tax professional for advice. As a business owner, you’ll want to make sure you’re lodging your taxes correctly and that you’re claiming all of the deductions you’re eligible for.
Stay on Top of Your Tax Situation to Manage Your Cash Flow
Paying taxes can present some serious cash flow issues for small businesses. At Cigno Business Solutions, we’re here to help Australian small businesses thrive. Contact us if you need help managing your cash flow this tax season.