Kickstart your financial year with these 7 tax tips

If you’re a sole trader you don’t necessarily need a separate business bank account (though we do recommend that you have one!). However, if you’re operating your business through other structures (such as a company, trust, or partnership), these are separate legal entities so will need to each have a bank account of their own.​

For example, if you’re changing your business structure from a sole trader to a company in the new financial year - or if you’re starting a business via company, partnership, or trust structure - you need to open a business bank account. To learn more, check out our article on opening a business bank account.​

Your tax obligations are one of the most important things to stay aware of as a business owner. These can differ depending on your situation.​

If you operate your business through a company structure, you’re responsible for:​

If you operate your business as a sole trader, you’re responsible for:​

If you’re not sure which business structure to choose, we have an article talking about common business structures in Australia. The start of the financial year is a good time to review your position and ask your accountant whether you should switch to another business structure. ​

The business structure you set yourself up with will have a huge impact on how your business runs, and will likely be one of the first steps you take when starting out. Keep in mind you may benefit from other structure types as you scale up your business. The 3 main things to consider when setting up your business are:​

Your business structure can change along with your needs as a business owner. You can always discuss with your accountant if your business structure is optimal for your current situation.​

You must register for GST if your turnover is (or is expected to be) over $75,000 within 12 months. You must register for GST as soon as you think you’ll earn more than $75,000 in twelve months. Review your GST position in the new financial year to see if you need to register for GST. If you earn less than $75,000 you can voluntarily register for GST.​

Read more: How and when to register for GST​

A key component of planning ahead is knowing what you can claim for tax. As a rule of thumb, you can claim only on an expense which is directly tied to generating income for your business. These may include:​

To avoid problems with your cash flow you need to set money aside for taxes (such as GST and income tax). As there are so many variables to consider, it’s very difficult to provide a set percentage of the money you should save. It’s best to assess the situation with your accountant based on your marginal tax rates.​

Be sure to mark the following dates in your calendar:​

Our key tax deadline calendar will help you stay on top of these dates (and avoid any late filing penalties or interest!).​

One of the most important (and often overlooked) tax tips we can give is to keep your records. The ATO requires you to retain your accounting records (such as invoices, receipts and bank statements) for at least 5 years in the event of an audit.​

You can either store your records in a physical location or in a cloud-based software such as Google Drive or Xero. Make sure they are easily accessible and understandable in the event of audits or tax inspections.​

Maintaining good record-keeping practices can help you avoid costly mistakes or fines.  You’ll also have a clearer understanding of your business's financial performance, helping you plan ahead.​

Accounting software can be a game-changer for small businesses. It allows you to automate time-consuming and complex financial tasks, such as managing invoices to generating financial statements and tax reports. Cloud-based software allows you to work on your finances from anywhere, and collaborate with others in real time.​

Investing in software helps to save money (and time) in the long run, as efficient management of your financial data means you’ll improve the accuracy of your information and have more insight into how you’re tracking. ​

Our pick of the bunch is Xero - learn more about how Xero enriches your business here.​

Let’s face it - lodging tax returns probably isn’t the reason you became a business owner. Hiring a finance professional can save you a lot of time and stress, freeing up your schedule to focus on your business or charge billable hours.​

However, a good accountant can help with far more than helping you manage your taxes. At Beany, we’re not just there for you at the end of the tax year. Your dedicated accountant will work alongside you throughout the financial year providing you with all the services and support you need.​

If you have happened to miss the deadline for lodging your tax return, your accountant will be in touch to remind you to do so. They will be able to help with setting up a plan to get things sorted.​

Start your financial year in confidence with Beany. We have a dedicated team of certified accountants and a support team to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down barriers and get things done. Looking out for you is what we are all about - talk to one of our team members or get started for free today!​