Tax tips for Small Businesses in Melbourne

Tax handling is one of the many headaches for small businesses. Business owners in Melbourne and elsewhere have made it through tax handling by hiring accountants. There are many accounting firms and software that offer the necessary help to businesses for tax handling.

Travel Costs

For small businesses which require travel, it is important for a business owner to know that many of the expenses such as airfare, car rental, mileage, hotel fees and laundry costs are completely tax deductible. In addition conference fees are tax deductible once the conference is used directly for business needs. It is also important to keep all your receipts and bills from your travels to assist in handling taxes. If a business has employed good accountants then he/she would be able to inform their company of this advantage.visit to know more information about the benefits for having an accountant.

Put Your Money in Superannuation

A business’ income tax bill can be significantly minimized if the business puts their money into superannuation and this is a means of retirement saving. Accountant Melbourne is one of the companies which offers assistance in superannuation with great rates and deals.

Tax tips for Small Businesses in Melbourne

Scrap Obsolete Stock or Plant and Write-off Those Bad Debts

For items that your business cannot sell they can be physically written-off as bad debts before June 30 so that you can receive a tax deduction for it within the year. The item which is now a debt however must first have been shown as an income in the business and it has to have been proven that there was a genuine effort to recover the bad debt on the item. Accountants which have the right expertise and skills will be able to analyse a business’ stock and know exactly which items can be written-off.

Defer Income

Taxable income can always be deferred to the upcoming financial year. The act of deferring income taxes allows a business to hold on to their money longer and therefore invest in more opportunities so that it can work for the business instead of immediately turning the money over to the Government. Accountants will be well aware of how to make this tip work for small businesses.

Private Company Loans to Shareholders

In the case that funds have been borrowed from the business, it is important that the appropriate interest and principal repayment are made by June 30. The loan will be taxed at marginal rates because the loan will be seen as an un-franked dividend paid.

Other interesting tax tips include the fact that equipment such as printers, computers and company vehicles are deemed as tax-deductible up to a certain amount by the government as it tries to support the fact that new small businesses need up-to-date technology. Business-related software is also considered as tax-deductible and businesses can take advantage of this by investing in some of the popular accounting software used to help small businesses.Click here for free accounting software for students. It is important that a business’ taxes are filed knowledgably as this will help to reduce the cost of running and maintaining the business.

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