Business Tax Return Brisbane
Introduction on Business Tax Returns
If you have your own business, established over many years or just starting out you need an expert to complete all your tax details for you and get the maximum return. An experienced accountant can take away the stress of your worrying if certain aspects of your tax return are not completed. Give us a call and we can do all this and more for you and leave you to concentrate on the essentials of running your business. STP Nundah is your local company the can assist you getting the most out of your Business tax return Brisbane.
Here are some tips on how to file business tax return in Brisbane. These tips apply if you are filing for the first time or you have repeatedly filed over a number of years. How do you prepare for getting those business tax returns accurately filed, in a timely manner and in a way that allows your business to achieve the maximum possible refund?
Review the Business Tax Return Completely
First thing you should do is to take a look at business tax return you are about to file and study which items you are expected to complete and the amounts you are going to enter into those spaces. Another important section is if there are questions you are being asked then you must ensure you have the detailed and accurate answers to those questions. The questions you are likely to be asked may include the nature of your business, the location of that business as well as how long your company has been in business.
You should also ensure that all the accounting for the business and the columns for income and any outgoing expenses are entered correctly. This is an area where an established business greatly benefits from the professionalism of employing professional accountants to keep all business financial records fully up to date.
Choose an Accounting Basis
One important decision a business owner has to decide on when the tax returns are prepared is which basis to use, cash or accrual. The cash basis recognizes income when collected as well as expenses when they are paid out. The accrual basis recognizes income when it is earned as it does with expenses whenever they occur. Business lenders will prefer to see an accrual basis on financial statements; tax returns can be prepared using the cash basis even when financial statements have been prepared using the basis of accrual.
Some considerations to think about are that a new business may well have a greater number of unpaid expenses than it has in uncollected income at the end of its first financial year. A solution to this is to show those additional expenses as a deduction. This is achievable on the accrual basis. However, in later years of trading when hopefully the business is showing a healthy profit, receipts should be higher than your outgoings. The business will be recording more net income and paying a higher rate of taxation through the accrual basis than it would do if it had selected the cash basis from the start of that business.
Once you begin in business you should continue with your chosen basis throughout the life of that business, you cannot change the basis when it suits. Businesses with larger revenues are expected to choose and stick to the accrual basis.
Choosing a Depreciation Method for your business tax return
Choosing which method of depreciation can be a difficult one to decide. Should you take a first year write off or elect to write the cost off of your office furniture and equipment over five, six or seven years. New businesses that are not showing a profit cannot use the first year depreciation method so must therefore opt for the route over a longer period during profitable years. Any new business is more likely to take this route towards slower depreciation than during its problematic startup phase.
Remembering Your Home Office Deductions
If you are operating a sole business venture from a home based location then you have the opportunity to include a business deduction of your residence. To be included in this deduction a portion of your home, such as an office must be used solely for business purposes. The total square area of the area used for business is then measured against the total area of the home. The percentage of the home used for business can then be calculated to become home office expenses against the monthly running costs of your home. If your business is running at a loss then a business deduction can be carried forward.
To fully account for the portion of your home being used for business purposes you should deduct the costs of mortgage interest payments, you can then include payments such as landscaping and general home repairs with the percentage taken as the business portion. Another deduction allowable is through the depreciation on your home.
When your year-end business tax returns are being compiled you should always add on any payments to independent contractors, this way you may be entitled to tax deductions such as non-employee compensation. If you have employees they pay taxes based on their income, similarly any contractors you may use during the course of a tax year could entitle you as a business owner to further deductions.
Keeping Track of Automobile Expenses
The expenses incurred through running a vehicle can become a major outgoing to any new or existing business. Business owners should record a log of where and when they travelled, who they went to see and the purpose of each trip. Keeping a log for all auto expenses through itemized deductions can lead to greater returns on your business tax deductions. You should also record the personal and commuting mileage on any vehicle you wish to claim expenses on during each tax year.
Paying Self-Employment Tax
Some sole proprietors sometimes overlook or are surprised to find they can claim against their self-employment tax and this contribution can be a major part of their tax bill.
This list prepares you for submitting your business tax return although there may be several other areas that you can claim on. Seek out a professional business tax specialist and he or she can take the time to thoroughly check your business tax details and help decide your best options of what you can claim.
Let us take on the business of your tax returns so you don’t have to. We can guarantee to complete your tax returns at an affordable and competitive fee with a personalized service that is right for you and your business. We have a range of packages to suit you, all you have to do is give us a call or send an email and we can begin completing your tax returns ahead of the time they are due.