A few tips that small businesses should consider when preparing their tax returns are:
1. Check if you are applying the correct company tax rate;
2. Check if you are entitled to the small business income tax offset;
3. Check if you are entitled to a small business CGT concession;
4. Ensure that deductions are only claimed for business (not personal) expenses; and
5. Keeping the right records to support your claims.
Keeping records
It is vital that proper tax records are kept by small businesses. Small businesses need to keep records in relation to establishing, running or selling the business.
Legally, records must:
- explain all transactions;
- be in writing (electronic or paper);
- be in English or in a form that can be easily converted; and
- be kept for five years (some records may need to be kept longer).
Tip! You’ll find tax time much easier if all your records are in order and readily accessible.
This link will take you to some information of keeping records for small business – https://www.ato.gov.au/
