How working with an accountant could save your business thousands

The most common questions that small business owners ask at tax time are typically focused on the deductions they can claim. The rules around what you can and can’t claim are complex so very few business owners fully understand what they can claim.

In particular, many small business owners are eager for information about the small business instant asset write-off, particularly if they have made capital purchases during the year and don’t fully understand how the write-off rules apply to them.

Engaging a tax professional takes the stress out of tax for small business owners. You’ll know that all your basic compliance obligations will be dealt with but more than that, if you use a tax adviser properly, you’ll get the sort of advice that can save you money by understanding the tax breaks you’re entitled to, how to reward yourself tax efficiently, how to structure your business for growth and so on.

 

Your accountant can advise on everything from how to structure your business for growth and how to reward yourself and your family tax effectively through to helping you to plan for succession if you’re looking to exit the business or even how to plan to pass on your wealth to the next generation. In addition, your accountant can also provide day to day help and advice on which registrations your business needs, how to finance capital expenditure tax effectively and what deductions you can claim.

 

There is no set time to speak to your accountant. Many businesses leave it until tax time but to get the best out of your adviser, it pays to meet regularly, both to plan for the future and to help with meeting current obligations like tax returns and BAS’s. Try to meet with your accountant quarterly or at the least, every six months to assess how your business is performing and get tips on how to improve the financial side of things.

This advice is of a general nature. Please speak to your tax professional for advice tailored to your individual circumstances.

Mark Chapman

Mark Chapman is Director of Tax Communications for H&R Block Australia. He has been a tax adviser specialising in advice for individuals and small businesses for over 20 years, in both the UK and Australia. Mark is a Chartered Accountant, CPA and Chartered Tax Adviser and holds a Masters of Tax Law from University of New South Wales. To find out more about how H&R Block can assist your small business, visit www.hr.block.com.au

 

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