Are you paying too much tax?
March 9, 2020
Paying tax is an inevitable part of doing business.
The more your income grows, the more tax you’re liable to pay. One reward for your success is a bigger tax bill.
While we don’t want our clients to avoid paying tax or evade the tax department, we do want our clients to pay the minimum amount of tax they’re legally liable for.
Many business owners don’t understand the tax deductions and other benefits available to them.
We want to help you arrange your financial affairs to minimise your tax and pay only what you should. Tax legislation is constantly changing. Our team is up to date with any changes and understands how changes can affect our clients.
Changes to your personal circumstances can also affect how much tax you need to pay. There could be a better way to structure your affairs, so you pay less tax.
Some examples of areas where you could save tax include:
- Vehicle ownership
- Home office expenses
- Employee benefits
- Loan refinancing
- Family income allocation
We can assess your tax situation.
We can review your financial reports and identifying potential tax saving opportunities in your business to determine the most appropriate tax structure for your circumstances. We can also advise on the financial implications of your current and planned arrangements.
We won’t just make recommendations; we’ll ensure you understand your tax obligations and give you peace of mind that you’re compliant with all tax legislation.
Knowing exactly how much tax you’ll have to pay means you can set aside the right amount of money on a regular basis, so you’re prepared for the bill and won’t incur penalties or interest.
Before filing your GST Return
If you file GST on Payments basis you will be filing GST based on when you have paid or received money, so it’s important that you:
- make sure that all transactions going through your bank account have been allocated to the correct expense or income account in your accounting software
- reconcile all bank accounts and credit cards to verify that the actual bank account balance matches the balance in your accounting software. This ensures that you haven’t missed or duplicated any transactions.
If you file GST on Invoice basis you will be filing GST based on the date of your customer invoices and supplier bills, so you need to:
- make sure that all customer invoicing has been done in your accounting software for the GST period
- enter all supplier invoices that are dated in the GST period into your accounting software as bills to pay
- record any cash purchases and income
- reconcile all your bank accounts (as above) to make sure that you have captured all income and expenditure
- Enter any expense claims to account for any business expenses paid with personal funds
Contact us today for your no-obligation consultation.