Saving receipts for tax will help you and your tax accountant. How proper receipts provide evidence of your expenses and income. They separate your taxable and nontaxable income. They help you and your small business accountant prepare your tax return. And you will use them to claim all your entitlements.
What All Can You Claim As a Small Business Owner?
Instant Asset Write-Off
Instant asset write-off is the best tax break for small business owners. As a small business owner, you can use instant asset write-off to reduce your taxable profits and acquire the necessary capital assets. Use the capital assets to build and grow your business. Tax breaks are now more generous.
You can get an immediate tax deduction for specific pre-paid business expenses. However, you need to have made these expenses before the financial year ends. If the payment covers an expense, which has gone into the new financial year, you will claim a tax deduction in the last financial year.
Capital Gains Tax (CGT)
Capital Gains Tax concessions apply to individuals, trusts and super funds. They do not apply to companies. So, small businesses or small business owners can use CGT concessions to reduce or eliminate capital gains as they dispose of their active assets. The reliefs are available to small businesses.
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Why Keep Records?
Keeping good records helps small business owner and their tax accountant to provide written evidence of their income and expenses. They help the small business owner and their tax accountant to prepare their tax return. And they ensure the small business owner can claim all their entitlements.
If you are a small business owner looking for a tax accountant to help you with tax and financial planning in Western Australia, then contact Perth Tax People. Let our tax accountant help you get maximum tax returns.