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5 Tax-Saving Strategies for Small and Medium-Sized Businesses

Updated: Friday July 21, 2023 taxes

As the owner of a small or medium-sized business, you should be no stranger to the complexities of the Australian tax system. 

Although they say taxes are one of the absolute certainties of life, they shouldn’t weigh your business down. At Finance & Tax Consultants, our specialised team of expert accountants, tax agents and advisors is here to help you navigate the process of managing your taxes. In this article, we share five effective tax-saving strategies tailored specifically for your business.

1. Maximise Your Deductions

Understanding the tax deductions available to your business is key and make sure you are claiming all relevant deductions, such as:

– Business Expenses: Operating costs like rent, utilities, office supplies, and advertising can be claimed as deductions.

– Capital Expenses: These include equipment, machinery, and other assets needed for your business operations.

– Depreciation: The decline in the value of your assets, such as vehicles and technology equipment, can be claimed as deductions over the years.

It’s best to consult with our expert tax advisors to ensure you take full advantage of the deductions available to your business and say goodbye to unnecessary expenses!

2. Utilise Small Business Tax Concessions

The Australian Government offers various tax concessions to eligible small businesses. Some of these include:

– The Instant Asset Write-Off: This allows eligible businesses to claim an immediate deduction for new or secondhand assets costing less than a set threshold.

– Simplified Depreciation: This involves pooling assets into a general small business pool, which can simplify the claiming of depreciation deductions.

– The Small Business Income Tax Offset: This can reduce the tax amount payable by an eligible small business by up to $20k per year.

Don’t worry too much about this—our experienced tax consultants can help you identify and utilise any tax concessions your business may qualify for.

3. Plan Your Capital Gains Tax (CGT)

Capital Gains Tax (CGT) is the tax you pay on any capital gain from selling an asset, such as property or shares. Here are some helpful ways to get you started:

– Wait at least 12 months before selling an asset to potentially benefit from the 50% CGT discount for individuals and small businesses.

– Claim eligible CGT concessions for small businesses, such as the small business 15-year exemption or the small business active asset reduction.

Consulting with our tax experts can help you take advantage of CGT planning strategies that best suit your business.

4. Utilise Effective Tax Structures

Choosing the right business structure (sole trader, partnership, trust or company) can significantly impact your tax obligations. Each structure has different tax implications, and choosing the one that most appropriately suits your business needs can help you save up on money. It doesn’t have to be too stress-inducing—our experienced tax advisors at Finance & Tax Consultants (FTC) can guide you through this decision-making process, helping you choose the optimal structure to minimise your tax liabilities.

5. Keep Accurate and Timely Records

Although mistakes happen, they can be devastating for businesses, especially tax-wise. Maintaining thorough, accurate and up-to-date financial records is crucial for managing your business’s tax obligations. Proper record-keeping helps you track your income, expenses, and other relevant financial information, making it easier to complete your tax returns accurately and claim all eligible deductions.

Partner with Finance & Tax Consultants (FTC) for Expert Support

For small and medium-sized businesses seeking to minimise tax liabilities and maximise profits, it’s crucial to take the right steps! The specialised Finance & Tax Consultants (FTC) team is dedicated to supporting your business through this complex process, offering expert advice and tailored solutions.

Disclaimer: This article is information and does not constitute financial, legal or tax advice.

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Individual tax returns start from $250, our fees are based on individualised circumstances. Factors such as complexity, requirements and timelines help us determine the fee structure. We are dedicated to transparency on our fees therefore our tax agents will always share costs with you upfront before proceeding.

Business, Trust and Self Managed Super Fund (SMSF) tax returns are quoted case by case.

Our client base is diverse and includes professionals & investors who typically earn $125k+ per year. We also prepare tax returns for companies, family trust and self-managed super funds.

Yes, our professionals are licensed with the Government Body, The Australian Tax Practitioners Board (TPB) as well as Professional Accounting Bodies such as the Institute of Chartered Accountant Australia (ICAA) and Certified Public Accountant (CPA) which have their owns requirements for registrations. We stay up to date on the latest tax laws and regulations to ensure we are providing the most accurate and current advice possible.

Finance & Tax Consultants have multiple offices around New South Wales however we service Australia wide. We also offer virtual meetings for all our clients over google/zoom networks.  Please check out our ‘contact us’ page for details on all our offices.

The tax laws & regulations are changing constantly, and we actively stay up to date with these changes through a range of means such as professional development & continuing education courses, tax and accounting publications, professional organisations as well as direct contact with the Australian Taxation Office (ATO). Our team works closely together to share knowledge and skills, and we’re proud of how committed we are to learning new things so that we can give our clients the best service possible.

Please note that our practice is not a financial advisory firm. Whilst we provide specialized tax and planning services for investors, we do not provide financial or investment advice.

There are several financial strategies you can use to accelerate your wealth as a investor, including leveraging equity, utilising tax benefits, and developing a long-term investment strategy. Our services are tailored to investors so we can help you understand & maximise your returns.

Owning and managing a real estate portfolio has a range of tax implications, including income tax on rental income, capital gains tax on the sale of properties, and stamp duty on property purchases. Our services can help you understand and manage these tax implications.

There are a range of tax benefits available for property investors in Australia, including deductions for interest payments, property management fees, repairs and maintenance, and depreciation. These deductions can help reduce your taxable income and minimise your tax liability.

We utilise cloud based systems to assist our client and unfortunately do not cater to paper receipts & invoices. If you are looking to transition to a cloud-based solution, please reach out to us.

Yes we do, we can help you integrate or transition to a cloud based accounting system. These systems are sometime tedious to setup but will save you many unnecessary admin hours in the future.

We can help optimize your business by providing a range of services including financial analysis, cash flow management, tax planning, business structuring, and advisory services. By understanding your business operations and financial goals, we can provide tailor solutions to improve profitability, reduce costs, and enhance overall performance.

Yes, we can help you setup a company. But before that, we will explain the pros & cons of a company structure among other legal structures available to see which one is the right fit for you.

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