How to Stay Up To Date With Your Tax Obligations
Are you always chasing your tail with the tax man?
Behind on your taxation obligations? If lodging your business returns, paying the ATO and Super isn’t made a priority in your business, it’s easy to fall behind.
The problem here, put simply, is that your business needs to be compliant with the ATO to continue trading and once you’ve fallen behind, it can be so much harder to catch up on your obligations. Not to mention it creates unwanted pressure on the busy life of a small business owner.
When a business is behind on obligations, does it mean it will fail…? Not at all.
If your business is profitable and you have the right advice and strategies in place a business can turn around. In fact, we’ve worked with business owners who were behind on their obligations and in turmoil who now are up to date with requirements, proactive and run great businesses.
The key is being proactive and not reactive when it comes to your taxation obligations and we’ve got some tips to help you get started.
Proactive Tax Compliance Tips
• Know Your Dates – Ensure you know when your BAS/PAYG/Super and Year End Financials are due! Mark the dates in advance in your calendar so you know what needs to be prepared and the value of payments to assist with your cashflow.
• Get Xero / A Bookkeeper – Firstly, you need a good bookkeeping software to ensure reporting, payroll and lodging is made easy for your business. Whether this means getting accounting software like Xero that is easy for business owners to use, or outsourcing your bookkeeping to ensure it is completed on-time and accurately.
• Follow a Cash flow Forecast – A cash flow forecast is so important as it identifies potential cash shortages, allows you to identify your ‘break-even point’ and it allows you to identify the key drivers in your business. In a nutshell, it identifies how much and what type of work you need to bring in, to ensure you can meet your financial obligations.
• Save Your Tax Money – That might sound obvious, but ensuring you have 2 bank accounts set up – one main trading and one savings so that you can put away your GST and tax money upon receipt of payment for your services means you always have the money available to make your obligations.
• Tax Minimising Strategies – Or in another words… Tax Planning… Work with your accountant for ways to best minimise your tax. We love a good tax plan at Empire!
Above all talk to your accountant. Having a proactive relationship with your accountant means you have them in your corner to keep you accountable, put strategies in place to assist in growing your business and getting on top of your tax obligations.
How can Empire Accountants assist your small business?
With our small business solutions. Our packages are tailored to ensure your business remains compliant and proactive, with the option of quarterly accountability meetings designed to help you continually improve your business. Find out more here.
Or give us a call to book a complimentary meeting 07 3124 0244