If you are running a small business, it is essential to keep a close eye on you tax expenses. In general, tax bills can be high and overwhelming for your operation, especially if you have other significant costs such as loans and wages to handle. If you want to avoid compromising your profit margins, you must ensure that your taxes are prepared correctly. Moreover, you must find every possible opportunity to cut your total bills.
Statistics compiled by the Australian Bureau of Statistics suggest that over 60% of small businesses in the country stop trading within the first 3 years of operation. If you are a small business owner who is trying to grow their customer base and market share, it is likely these numbers will give you some cause for concern. One of the major reasons that small businesses fail in the first few years is financial mismanagement.
Superannuation refers to arrangements put in place to help employees accumulate sufficient funds for their retirement. In Australia, this arrangement is partly compulsory and the government has further thrown its weight behind it through tax benefits. There are minimum standards set by the government for employees and the authorities tasked with the management of these funds. Employers on the other hand have an obligation to make contributions to this fund on behalf of the employees over and above the wages and salaries they pay them.
When running a small business, it can be easy to misplace documents and leave your self-assessment tax return to the very last second. Typically, this wouldn't cause many problems. However, the Australian tax authorities occasionally carry out audits on a random selection of tax returns. If you receive notification that your accounts are going to be audited by a tax inspection, it is likely that you worry about what they might find.
Whether you're a freelancer or the owner of a small company, you have to keep track of a lot of numbers. At the beginning, it may work to track financial details in a spreadsheet or even just on a sheet of paper, but eventually, you may need to upgrade to accounting software. Wondering what features it needs? Ideally, the accounting software you select should have the following abilities. 1. Scalability