In Australia, most sole traders usually worry about a lot of things, including tax time. As such, we have created this article to give sole traders a heads up on what to do to make tax time easier.
#1. Separate business and personal expenses
One action that usually gives sole traders headache is combining business and personal expenses in one account. This can bring a problem during tax time, as it will be very difficult to separate business expenses from personal expenses. At best, what you should do as you start your business is to separate both expenses to help your tax professionals file for appropriate claims.
#2. Know the rules around expense claims
Another important tip to keep close to your chest during tax time is to know the rules around expense claims. Whenever you spend money or items or goods that enable you to make money for your business such expenses are usually fully deductible or partially deductible. However it is important that you know the particular expense to claim so that you don’t bring issues to your tax processes.
#3. Don’t do it alone
Consider seeking the help of a tax professionals, whether you are yet to submit your tax return or you plan to do so in the coming new year. At Elite Tax Success, we provide valuable insights into your business’ health and will work with you to produce a reliable profit and loss statement that will help you claim your business expenses.