Judge Accountants recently released tips to help businesses save money this year. With tax time fast approaching, these tips are sure to be greatly appreciated. Individuals need to act quickly though and speak to their accountant before 30th June to take advantage of the tips this year. —
"First and foremost, small businesses need to ensure they are taking advantage of the instant tax write-off for depreciable assets. Any asset that costs less than $20,000 may be claimed for an immediate deduction, saving small businesses a great deal of money," Barclay Judge of Judge Accountants (https://judgeaccountants.com.au) declares.
Furthermore, small business entities, or those businesses with a turnover of less than $2 million, receive special depreciation concessions. As of 1 July, 2017, businesses with a turnover of less than $10 million will also receive these concessions. Businesses should purchase their new equipment with this in mind.
A business should also look into purchasing motor vehicles and equipment for their business before the June 30 deadline. In fact, some small business owners may find selling their personal vehicle to the business is a good way to save on taxes. This may be done for vehicles with a market value of less than $20,000.
"A small business owner will find there are numerous ways to reduce their tax burden. For example, some businesses may be able to defer income to the following tax year. When payment is made in advance as part of a contract or agreement, the income is taxable in the year in which the work is actually carried out. This is true even if the work is invoiced, and a small business owner may record this income as unearned in their accounts. Another way to defer income will be to consistently apply disputed customer accounts in the taxpayer's account until the dispute is settled.," Judge continues.
Reduce taxable income by prepaying expenses. These amounts are deductible upfront when the service period is essentially less than one financial year.
To encourage small businesses in New South Wales to hire more employees and expand their business, the NSW Small Business Grant has been developed. This grant provides $2,000 to any eligible small business that hires a new full-time employee when the employee reaches their one year anniversary.
"One key to saving on taxes is to make sure the best business structure is being used. Simply by changing the structure of the business, it may find they can save tens of thousands of dollars a year. As businesses and tax laws change, what may have been appropriate in the past can currently be doing a business harm. Now is the time to evaluate the organisation and determine if restructuring is more tax effective," Judge explains.
Work related expenses are another area where many entrepreneurs fail to receive the full tax benefits. Home office and occupancy expenses must be carefully deducted, and individuals will find they can also claim other deductions, such as union fees and tools of the trade. Many business owners fail to claim all expenses they are eligible for, thus they pay more in taxes than they truly need to.
"Contact our office (judgeaccountants.com.au) today for more tax saving tips. We are here to assist you in any way we can when it comes to reducing your tax burden," Judge states.
About Judge Accountants:
Judge Accountants provides proactive strategies designed to consider all aspects of a client's financial life, opening up possibilities to help the client, his or her loved ones and business to achieve the best financial outcome. The firm focuses on providing holistic, personalised service to help each client achieve the best personal finance, business, estate planning and retirement goals. The team understands each client requires a tailored service, from individual tax returns to a complete end to end solution. Clients should know exactly what they are getting and for how much, thus the firm offers a fixed price transparent billing system. The goal is to ensure each client is 100 percent happy with what they receive.
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