It’s a very good question and, if you consult wisely, the answers are designed to reap rewards.
Finding out the best small business tax planning ideas makes sound financial sense. Knowledge is power in the sometimes-tenuous realm of SMEs — where every dollar counts.
When you add the financial constraints of the pandemic on top of daily operational costs, it pays to be informed on making the best choices for small business tax planning ideas.
Every small business is different. Inspiration – plus maximum savings – are often derived from a customised approach to tax-planning ideas.
Some of the best small business tax planning ideas include the immediate deduction of assets that are less than $20,000.
Eligible businesses can claim deductions for the cost of assets, in the year that asset was installed or initially undertaken. This is applicable for multiple assets and new or used assets. Conditions to threshold levels apply, so you are advised to consult taxation experts to maximise savings and benefits.
You could also make use of deferred income and bring forward expenses when adopting the best ideas for small business tax savings. Deferring income allows you to push forward payable tax to the next financial year.
Travel and home office deductions are other areas where business-related expenses can be offset. Ensure you keep accurate and ongoing records of all travel and home office expenses to maximise the tax benefits.
Purchasing business-related consumables such as computers, office supplies and marketing material can be deducted from their year of purchase. This means you won’t have to wait until the next financial year to gain the benefit of deductions.
Fringe benefits tax-exempt items, including mobile phones, digital cameras, electronic organisers and protective workwear, can also provide small business tax benefits.
If you are a small business owner with an investment property, you can use a Property Depreciation Report to your advantage.
By using the report to claim building write-off deductions and maximising the amount of deprecation on rental properties, you can save money and help to build your investment portfolio.
Start planning for a successful future for your small business. Rolling out a retirement plan is a step in the right direction. There are a variety of retirement plan methods that you can use in your tax-savings strategy. Consult your tax advisory expert to find out how.
You can also reduce your small business taxes by setting money aside for healthcare needs. Saving for unexpected spending on future healthcare makes perfect sense for small businesses and individuals.
Remember that being creative — but remaining within the bounds of tax-deductible small business tax planning ideas — is designed to help your small business grow.
The best way that you can utilise small business tax planning ideas is to contact the taxation experts. You’ve come to the right place at Valles Accountants. We are a boutique accounting firm with more than 35 years of collective experience.
We are also highly qualified to offer advice about the most prudent small business tax planning ideas — plus all accounting and tax-advisory matters. We support small business owners throughout Australia.
No matter where you are located, we can service your all-important financial needs — promptly, expertly and affordably. Reach out to Greg and the team at Valles Accountants to make the best-informed tax decisions for your small business.