8 Tax tips for trades businesses
Essential Tips for Trades Businesses
We have many clients that are in the trades such as electricians, plumbers, renderers, carpenters, builders, painters, steel fixers, plasterers and more
Our top tax tips for trade businesses are:
Running a trade business comes with unique challenges, and managing taxes efficiently is one of them. Here are eight essential tax tips to help you stay on top of your financial game:
1. Know Your Scoreboard
Keep accurate and up-to-date financial records. Understanding your financial performance helps you make informed decisions and stay on track.
2. Choose the Right Accounting Entity
Select the best accounting structure for your business, whether a sole trader, partnership, trust, or company. Each has different tax implications and benefits.
3. Simplify Your Accounting
Use accounting software like Xero to streamline your bookkeeping. Automated processes save time and reduce the risk of errors.
4. Maximise Your Claims
Ensure you’re claiming all eligible deductions. Every claim adds up from tools and equipment to uniforms and protective gear.
5. Home Office and Vehicle Deductions
Understand what you can claim for your home office and business vehicles. Accurate records and a clear understanding of these deductions can save you money.
6. Exploit Superannuation
Use superannuation contributions to your advantage. Super can be a tax-effective way to save for retirement and reduce taxable income.
7. Tax-Effective Investments
Consider investments that offer tax benefits. These can help you grow your wealth while reducing your tax liability.
8. Reduce Bad Debts
Implement systems to manage and reduce bad debts. Regular follow-ups and effective credit control can improve your cash flow and financial health.
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