How to Stop Losing Money on Your Tax Return
Deductions, expenses, rebates – tax returns can be complicated and time consuming to prepare. Taking time to work on your tax return and to speak to accountants in Sydney or your local city is well worth the effort. Whether you’re a full time employee, run your own business, or have investments, getting organised and getting advice is the proven way to reduce your tax bill.
Getting Professional Advice
Your accountant is your best partner in not just reducing your tax bill, but in building wealth for the long term. An accountant is trained to understand cash flow, financial statements, tax law, and reporting obligations. As tax and accounting law are complicated matters and change so frequently, it’s not a question of getting advice or not, but a question of whether you’re getting advice on a regular basis.
Advice on Record Keeping
You can develop a relationship with your accountant to simplify recording and reporting procedures. Working with an accountant to set up a good recording system for your finances can help save significant amounts of time.
At the same time, you can also obtain advice on an overall strategy for structuring your income and investments, and to better understand your financial statements. An accountant empowers you with the knowledge to make better wealth building decisions.
Know Your Income
Income is often not as straightforward as many believe, especially for businesses. It’s not always clear what can be counted as income and what should not. Ensuring that you know the difference – and getting advice to get a clear picture of your financial situation – is another key to reducing your tax liability and avoid the prospect of fines and penalties.
Know Your Deductions
Rules regarding deductions for businesses and individuals can be very confusing and can change from time to time. Seeking advice where possible helps you make the most of allowable deductions. As identifying deductions usually goes far beyond applying a simple criterion, many businesses and individuals erroneously apply deductions, which can lead to unwanted legal issues with the ATO. Work related expenses and allowances can be confused with allowable deductions and individuals can have trouble separating elements of their work and personal tax.
Restructure for the Future
It’s never too late to set up a tax effective structure. Structuring investment vehicles and businesses for tax minimisation can lead to massive tax reductions as well as enhancing profitability for the future. Whether you’re a private individual or business, there are lots of reasons to consider alternative structures and many options n Australia for doing so.
Set up an Accounting System
Setting up a streamlined recording and reporting system helps save the amount of time required to generate reports. It encourages accuracy and potentially eliminates the need for manual adjustments. Working with a professional accountant is a good way set up an effective book keeping system for the future.
Recovering Overpaid Taxes
For those who have prepared their own returns for some time, there’s a good chance of having overpaid taxes in the past. Whether it’s advice on tax return for Sydney or other businesses, a certified accountant can help you identify ways to have these overpaid amounts returned.