Managing a small business is no small feat. Between dealing with a thousand and one things, tax filing doesn’t have to be another headache waiting to happen.

When done right, it’s an opportunity to save money, keep your cash flow in check, and ensure your business is set up for success. Staying on top of your tax obligations is a must. Here’s our guide on business tax filing for beginners.

What’s a Small Business, and Does Your Company Make the Cut?

Before we explore small business tax filing tips, let’s see if your business fits the bill. The ATO defines a small business as one with a total turnover (combined income from your business and any connected or affiliated entities) of less than $10 million.

Why do you need to know if your business is eligible? Other than to ensure you’re filing your taxes correctly, your business may also qualify for certain concessions and benefits designed to support small enterprises. This includes:

• Simpler depreciation rules.
• Lower company tax rates.
• Eligibility for tax offsets.
• Access to simplified Goods and Service Tax (GST) and Business Activity Statements (BAS) reporting methods.

Is your company considered a small business? Well, let’s explore tax tips for new business owners next!

Business Tax Filing for Beginners 101

1. Stay on Top of Your Numbers

Every dollar matters, especially for small businesses. Out of all the small business tax filing tips, recording your income and expenses, no matter how small, is crucial. Income ranges from sales and service revenue to interests from bank accounts or investments, whereas expenses involve money spent on operations, capital, or payroll.

Keep all your records organised to ease the filing process. Have receipts and invoices accessible digitally or physically, separate your personal from business accounts, and ensure your records match bank statements monthly. In short, to stay tax compliant, have an accurate archive of accounts payable, receivable, profits and losses, and depreciation. With this, you can easily track income, claim deductions, and provide proof to the ATO if audited.

Another number you’ll want to underline in red is the tax deadline. If you miss filing your taxes before this date, you might face late lodgement and payment penalties or lose access to concessions, which ultimately impacts your cash flow.

Want to ensure you cover all your bases? You can contact a business tax accountant, saving time, improving accuracy, and leaving the tax stress in adept hands.

2. Determine if Your Business is Eligible for GST

Registering for GST is another tax tip for new business owners. If your business has a GST turnover (gross income from all businesses minus GST) of $75,000 or more, missing out on this could mean heavy financial penalties and backdated liability.

Running a non-profit organisation? You’ll need a GST turnover of $150,000 per year or more. Plus, your business must be GST-compliant if you want to claim fuel tax credits.

3. Maximise Savings with Write-Offs and Deductions

When it comes to business tax filing for beginners, one perk is the immediate write-off, which currently has a threshold of $1,000 to $20,000.

This tax concession allows you to claim an instant deduction for the cost of eligible business assets rather than having it depreciate. This includes equipment, machinery, vehicles, and technology purchased and used in the same income year you’re claiming the deduction.

4. Keep PAYG & BAS in Check

If you’re registered for GST, you must lodge a business activity statement (BAS) to report and pay your taxes on time. You’ll also have to make quarterly PAYG instalments—prepayments of the tax on your business and investment income.

Avoid surprises during tax season with PAYG instalment plans and withholding the correct PAYG tax for your employees.

5. Consult a Tax Agent

Another small business tax filing tip is to review your finances with an expert. Operating a business alone isn’t easy—even the most capable business owner needs a little extra hand sometimes. That’s why having an expert by your side can make things easier.

With a certified tax agent, such as JCB Accounting, you’re accessing years of expertise with a professional who is updated with the latest tax regulations. This means accurate filing, minimised errors, and saved time.

Take the Stress Out of Tax Time

Filing taxes can get overwhelming, but with our tax tips for new business owners, you’re on the right track. The ATO’s toolkit for small businesses is also a great addition!

Need a helping hand? Get in touch with JCB Accounting—we’ll make the journey stress-free.