Prosperity Accountants shares best tax saving strategies for small businesses in 2023
Announcement posted by appers 13 Feb 2023
Perth, WA Australia – Feb. 13, 2020 – When it comes to tax, what’s worse than giving ‘til it hurts? Giving ‘til it doesn’t hurt anymore because you’re so used to just paying without questioning anything - bigger fish to fry and all that. But maybe keeping more of your hard-earned is the big fish.
It is important to note that the tax laws in Australia are complex and are subject to change. It is advisable to seek professional advice from a tax accountant or a financial advisor to understand the tax implications of your financial decisions and to ensure that you are taking advantage of all the tax-saving opportunities available to you.
At Prosperity Accountants, they have created a comprehensive list of key tax-saving strategies for small businesses:
- Claiming work-related expenses: If you incur expenses while performing your job, you may be able to claim a deduction for those expenses.
- Investing in rental properties: Investing in rental properties can result in tax benefits, such as deductions for property expenses, depreciation, and capital gains tax discounts.
- Using tax offsets: Tax offsets, also known as rebates, can reduce the amount of tax you owe. The Small Business Tax Offset, also known as the unincorporated small business tax discount, is a tax offset available to individuals who run a small unincorporated business in Australia. The offset is designed to provide tax relief to small business owners and is calculated as a percentage of the income tax payable on the business income received by the individual.
- Take advantage of small business concessions: Small businesses with an annual turnover of less than $10 million may be eligible for various tax concessions, including simplified depreciation rules and a lower corporate tax rate.
- Keeping accurate records: Accurate record keeping is essential for claiming tax deductions and offsets. Keep receipts and other records of your expenses to support your claims.
- Consider a tax-effective structure: Consider setting up your business as a company, trust or partnership, as these structures can offer tax benefits.
- Stay up to date on tax laws and regulations: Stay informed about any changes to tax laws and regulations that may affect your business and seek professional advice when necessary.
- Plan for tax time: Plan ahead for tax time by keeping track of expenses and receipts throughout the year and seeking professional advice if necessary.
- Manage debt wisely: Consider the tax implications of borrowing and using debt to finance your business. If you're struggling to manage your debt, consider seeking the advice of a financial advisor or accountant who specializes in small business finance.
It is important to keep in mind that everyone's tax situation is different, so it is advisable to seek professional advice from a tax accountant or tax agent to determine the best tax-saving strategies for your specific circumstances.
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About Prosperity Accountants
Prosperity Accountants are committed to helping their clients achieve their financial and business growth goals through expert support in the areas of tax, tax planning, business structuring, accounting and tax compliance, and business improvement. Their team has the tools and skills to help you optimize your tax position, streamline operations, and take your business to the next level. They don’t just offer traditional accounting services – they are a partner in your success, and they are dedicated to helping you prosper.
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Prosperity Accountants
Phone number: 08 9443 5199
Email: enquiries@prosperityaccountants.com.au
Office Hours: Monday - Friday. 9am - 5pm