Preparing your small business for tax time can be a daunting task. Although, if you have been tax preparing for the entire financial year, this process might be a little easier. It can be hard to prepare for the tax season when you have no idea what you can claim, and what will help keep more money within your business.
There are various things you can claim on behalf of your business. We are going to outline services, equipment and other aspects of your business that you will be able to claim and should be collecting throughout the year.
1. Salary, Wages and Contractor Costs
A large sum of your expenses will consist of paying all the people that help keep your business running. This is inclusive of all of your employees, sub-contractors and contracted labourers. These business expenses can also include all Christmas and work bonuses, commissions and taxable fringe benefits that are given to your employees. It is important to keep track of all these records, whether you’re paying for a system like Xero or have employed a bookkeeper to assist (good news, both of these are also expenses you can claim).
2. Office Essentials
Another important, but often overlooked tax claim that you can make is everything needed for your office to continue to run smoothly, day to day. So, what does your office need? To run, your office would need essentials like pens, paper, printer, ink etc. These are ‘small’ items but over the year you’d be surprised just how this can stack up. This can also include cleaning supplies and postage expenses. To put it simply, every item that you have or use in your office throughout the year can be considered a deductible business expense.
3. Equipment
Every type of business needs certain equipment to help the business run. This includes all of your technology. Whether this be computers, laptops or even your phone, all of this technology is another key tax deduction that you can make. Industry exclusive equipment is also a deduction that should be made. This can include vehicles, machinery and tools. Don’t forget that any repairs that need to be performed on any and all your equipment should be kept in the financial records.
4. Outsourced Services and Utilities
Do you use a specific company to work on all your accounting, legal requirements, HR needs and marketing ventures? These can be fully deducted during your tax return. If your business is currently paying rent on certain equipment, buildings or all of the above, you will be able claim these items during the financial year.
5. Home Offices
Due to the unprecedented time that we are currently living in, there have been many businesses that have changed their business structure to cater to the working from home lifestyle. With this, there are new expenses that you are now able to claim from your home office and should consider during the new financial year. Items like desks, computers and supplies are some of the many items that you’re able to claim.
Make the most of your tax return now and in future. By keeping these key tax deductible items top of mind, your business’ financial records will never be disorganised again. Should you need further assistance or would like to speak with a professional regarding all the tax deductions a business owner can make, contact the W M Wright & Co team today on (02) 4721 7444.
