Australia’s tax season is just a couple of months away, but it is going to be a little different for small businesses this year. The government recently announced that it will allow the Australian Taxation Office to share the names of businesses that owe money to credit reporting bureaus (unless they have proactively been working with the ATO to manage debts). This could mean serious reputational damage for small businesses struggling to stay on top of their finances.
Here are our tips for your business to better manage its accounting and bookkeeping in preparation for tax season.
Tip 1: Know the important dates
Staying on top of your taxes is all about knowing when your taxes are due. If you want to be as organised as possible however, there isn’t just one date you need to be wary of. Here is a list of the major dates that the ATO has deemed important guidance for your business:
- 28 April: Due date for most Business Activity Statements.
- 15 May: 2016 tax returns for entities that did not lodge earlier and are not eligible for 5 June 2017 concession
- 28 May: Pay Fringe benefits tax annual return and lodge Superannuation guarantee charge statement
- 5 June: Lodge tax return
- 25 June: Lodge 2017 Fringe benefits tax annual return if you use a tax agents’ services.
It will be more important than ever for small businesses to stay on top of their taxes this year.Tip 2: Prep for taxes well in advance
While tax season technically starts on the first of July, it’s important to prep for them all year long. Keeping your data and records in order all year round are essential to ensuring that you won’t have to scramble at the last minute to get them prepared. These days, there are bookkeeping systems like MYOB and Xero that can help keep this information in order.
In 2015 to 2016, about 28 per cent of small business tax liabilities were paid late.
Tip 3: Never avoid paying or pay late
It might seem like an obvious piece of advice, but many small businesses who find themselves struggling will avoid paying their taxes. According The Australian, in 2015 to 2016, about 28 per cent of small business tax liabilities were paid late. In total, the tax office is out $19 billion in overdue tax, $13 billion of which is owed by small businesses with a turnover of up to $2 million, reported the source. However, as we reported earlier, late taxes are going to be a big issue for small businesses soon.
Our final tip for you is simple: don’t go into tax season alone. Working with us here at Accountants Australia puts the hard work and organisation onto our desktops. Contact our team of professional accountants and bookkeepers today, and we will help your business prepare for tax season.
