Small business owners need to maximise their resources and find ways to save money. One such way is to use their tax refunds. These come in various forms and provide your company with savings you can use to reinvest in your company.
Learn how to begin maximising tax returns in Australia with the following tips.
Manage your business expenses effectively and maximise your tax returns by paying bills early. Pay a lump sum amount for expenses so that you can get a tax deduction for the current year. This refund allows you to save money and direct resources to other needs of your business.
Use a Super Fund
For couples that have a partner that makes less than $40,000 or is unemployed, investing money in a super fund is a way to maximise tax returns. When you put money in a super fund, you can lower the taxes of the higher earning partner. The person with the higher income can put up to $3,000 to a super fund. They can then get an offset of approximately 18%.
Assess Your Health Insurance
Review your policy and determine if it covers certain illnesses and provides you with the services you want. If your needs have changed, you might want to change insurers. You can use the premium of a private health insurance to boost your tax returns.
Donate to Charities
How to maximise tax returns includes helping a cause. Donations to charities throughout the year saves you a lot of money. Even if you donate just $100 every month can slash your tax bill. Keep all the receipts for these donations when it’s tax season.
Tax deductions come in different forms such as business travel expenses, tools and equipment used for a job, Internet and mobile phone plans, and anything you use for work. Monitor these and keep detailed documents. You can save hundreds or thousands of dollars when you do this practice regularly.
Keep the Receipts
Some small business owners make the mistake of losing, misplacing or throwing away receipts. This can lead to lost savings of hundreds or thousands of dollars. You don’t want to waste time looking for a receipt a day before paying your taxes. Put all possible deductible receipts in one cabinet and label each one.
Maximising your tax returns in Australia saves you a lot of money. Try the ways mentioned above and see how much money you can save for possible reinvestments into your small business. If you need help with bookkeeping, feel free to review Robookkeeper’s services. We provide quality bookkeeping services and can connect you with experienced freelance accountants.