When it comes to tax time, different accountants may employ different tax strategies in a bid to reduce your taxable income as much as they can. There are a lot of options when it comes to getting your taxable income down, so it is important to consider your options if you have had a good year and are facing a solid tax bill. Some of the most common tax minimisation strategies include:
Think about tax time all year:
The best thing that you can do is make sure that you are thinking about your tax obligations throughout the year, rather than just at the end. This is especially true if you are a small business owner, as you might get stuck with a bigger than expected tax bill if your records aren’t up to scratch.
If you have had trouble in the past, then you should think about using a decent accountant to keep your tax affairs in order for the entire year. They should be able to advise you on logical financial decisions for your business, should pick up on problems before they become major, and should be able to help you keep your taxable income down at an acceptable level.
If you have decided to start your own business there will be many decisions to make, but perhaps the first one will be what kind of business you should start. Obviously many professions require qualifications, just like trades such as an electrical contractor where you are required to be a qualified electrician such as Electrician Perth, but there are many business types to choose from without such certifications, but the best one for you will be something that you love doing. There are several other criteria to consider in choosing a business.
Do you love working with people? If chatting with and caring about people comes naturally to you, any business where this is a necessity to do the job will suit you. Think in terms of a hairdresser, who usually talks and listens to each of her customers while doing their hair. Now compare that with being a mechanic who has her head under the bonnet of a car for most of the day with little customer interaction.
If you have plans to start up a business, it is wise to consult with commercial lawyers first, because there are many things to consider and decide on. You can’t just go into business without first making sure it is done legally. One of the first things to decide is what type of business structure you will have for your business. Here are some of the main types: –
Sole Trader. This is perhaps the easiest type of business to set up and as the name suggests, and may be suitable for a small carpet cleaning operation like Brilliance Carpet Cleaning Perth or something similar with only one person involved. You won’t have a partner or a company structure as such, however you will need an Australian Business Number (ABN). You may also need a business name and a trademark, both registered. A sole trader has full control over every aspect of the business, owning all the profits and all the debts.
No matter what kind of business you have lawyers & solicitors are some of the main professionals to get advice from. They can not only offer advice, but help you a great deal in making sure all parts of your business are worked out correctly. Drawing up the lease is a good example; if this is not done properly it can end up being quite unsuitable for you, or cost you more money than it should.
If you don’t know what should be in a lease, don’t leave it up to the landlord to tell you. There are many clauses that can be added to protect you from things such as the rent being increased by too much in the future through to what happens if you need to sell your business before the lease is up. Don’t leave these things to chance. It is up to you as a businessperson to seek good legal advice on this and other matters.