Carrying a business smoothly takes into account following all sets of stringent and mandatory rules and regulations that comply with the complex and multiple taxation laws. Business taxation rules and regulations are not only complex in Australia but also across different countries across the world. Understanding the complexities of business taxation is never an easy task for any of the business owners.
Since in a business, you will have incomes from different sources and keeping track of all these is always going to be hectic. If you, as a business owner, do not have the idea of handling or saving taxes, then there is a possibility that you might end up paying a large amount as tax every financial year.
This blog highlights some of the effective tips as suggested by the HANSUNG’s proficient tax accountant in Parramatta to maximise the profit and consequently the investment. Have a look!
1. Paying All Related PROPERTY TAXES on Time
Paying all the associated property taxes on time can be a boon at times. You can be entitled to some of the deductions as a result of which you can save something from your profit.
2. Keeping Track of All the EXPENSES
To ascertain that your business is paying the right amount as tax, it is essential to maintain proper track of all the expenses. For the small size or start-ups, it is very much essential to keep track of the payments being done via cash. Skipping any of the numerals is going to make you show a higher profit and consecutively a greater tax deduction.
3. Proper Stock Valuation and Calculation of Depreciation
The stock of any business is valued at cost. In addition to it, it can also be valued on the Cost of Net Realizable Value. But the expert accountants from HANSUNG, one of the reliable accounting firms in Parramatta, believe that the business needs to be consistent throughout the financial year to avoid excessive taxation.
If you own a manufacturing enterprise, then calculating the machinery depreciation is an important aspect. Since the deduction of the machinery is maximum in the first year, therefore, it needs to be considered in the best possible way.
4. Always Ensure TDS
TDS or Tax Deduction at Source is considered as an efficient way of keeping the amount paid as tax in check. For example – if you, as a business owner or buyer, fail to deduce the tax at source while making a payment to the seller or the service provider, then the amount becomes inadmissible and comes under the ambit of the tax deduction- resulting in higher tax payment.
5. Filing the Tax on Time
Filing the business tax return on time is always going to be beneficial. It is not only going to help you get additional benefits like deductions but also saves you from all sorts of penalties that the authority imposes on the grounds of tax default.
Irrespective of the size of the business and the capital gains, the companies need to make effective strategies to save big on business tax payment. Every business transaction needs to be kept in the loop so as to ensure that at the end of the financial year, your business pays the right amount of tax.