If you’re running a start-up there might be too many things on your plate. However, you need to keep tax compliance as your top priority. Here are some useful tax tips for small businesses that you should consider to make sure your business is compliant.
- E-Filing Of Returns
Depending on the state where your business is located, you might be mandated to do e-filing or not. The difference might come down to your tax liability or whether the state has enough infrastructure to handle e-filing. Therefore, you need to know beforehand your exact requirements to ensure tax compliance.
- Pre-payment Of Your Tax Liability
You need to know the requirements regarding the pre-payment of your tax liability in your particular jurisdiction. For instance, if you have a large tax liability, you might be forced to do a pre-payment. On the other hand, there are a few cases where you might have a different filing schedule compared to the regular options. If that’s the case with your new business, make sure you keep the dates accordingly to avoid penalties.
- Keep Tab On Your Checks
It might seem like a burden but if you don’t see the notice from the revenue department, you will have an outstanding balance. Therefore, keep tab on your checks and any other relevant documents to make sure you’re compliant with all the tax requirements in your jurisdictions.
- Beware Of The Tax Exemptions
You need to know in what areas you are exempted and make sure you have the necessary and updated certificates that show your exemption statues. Note that, if you change your company name or have opened a new company, you might be forced to apply for new exemption certificates to show your current status.
- Beware Of Deductible Expenses
Recently, new tax laws were introduced allowing and removing some expenses from the deductibles list. Therefore, take your time to read through the new tax laws to make sure you are compliant with regard to the deductible expenses. If possible, you can consult a tax expert to give you proper advice on the way forward.
- Keep Proper Books
If you are not keen on your bookkeeping you might end up paying a lot more in taxes because you’re missing out on the tax deductions or any benefits you should receive. If possible, hire a bookkeeper to help you keep your records in order.
Visit nhbt.com.au for more information on the best business tax practices.