Business FAQs: Clear Answers for Your Business Needs
Running a business comes with a long list of tasks, and tax-related questions often top the list. Whether you’re wondering how to claim your car expenses, if superannuation is a must for your business, or what to do in the event of a tax audit, you’re not alone! These questions can be confusing, but they don’t have to be.
Here are answers to some of the most common questions we hear from business owners like you:
How do I claim cars?
You can claim a portion of the expenses for your car when used for business purposes, including fuel, maintenance, and depreciation. The method you choose will depend on how much you use the car for business (e.g., logbook method or cents per kilometre method).
How do I make sure I am claiming everything I can?
Proper record-keeping is essential. Keep track of all your receipts, invoices, and business-related expenses. Working with a tax professional ensures that you are claiming every possible deduction and complying with tax laws.
Do I have to pay myself superannuation?
If you’re operating a business and pay yourself a salary, you are required to contribute to your superannuation. However, if you’re a sole trader without a salary, you’re not obligated to make super contributions to yourself, but it’s a good practice for your long-term financial health.
What happens in a tax audit?
A tax audit is a review of your business’s financials by the Australian Taxation Office (ATO) to ensure you’ve paid the correct amount of tax. It’s essential to have thorough documentation to support your claims and deductions.
Should I use accounting software or is it ok to use spreadsheets or just bring in my shoebox of invoices?
While spreadsheets or a shoebox of invoices might seem like an easy option, accounting software like Xero or MYOB offers better accuracy, real-time tracking, and a more efficient way to manage your business finances. Plus, it integrates with your tax agent’s systems, making your tax return preparation smoother.
I am buying a car for the business. What do I need to know?
If you’re buying a car for business, you can claim a portion of the purchase price as depreciation. The amount will depend on the business use percentage and the car’s cost. It’s important to also keep track of running costs, like fuel and maintenance, which can be claimed.
I am starting a business. What do I need to do?
Starting a business involves registering for an Australian Business Number (ABN), setting up a business structure, and understanding your tax obligations. You’ll also need to manage cash flow, keep financial records, and set up systems for invoicing and expenses. We can help you get started with all the necessary steps!
I am employing staff. What do I need to do?
When you hire employees, you’ll need to set up their payroll, deduct tax, pay superannuation, and ensure you’re meeting your workplace compliance obligations. You’ll also need to lodge pay-as-you-go (PAYG) summaries and make super contributions.
I used to get paper BAS returns, but they have stopped. Why is this so?
The ATO has moved to electronic filing for most businesses, making it easier to lodge your Business Activity Statement (BAS) online through platforms like Xero or MYOB. If you need help with the transition, we’re here to guide you.
Why do I owe more tax called pay-as-you-go instalments? How do they work?
PAYG instalments are pre-payments made towards your end-of-year tax liability. If your business has made significant profits, the ATO may require you to pay these instalments throughout the year. We can help ensure you’re on top of your PAYG obligations.
How do I access my tax information electronically from the Australian Tax Office?
You can access your tax information online through MyGov or your business portal if you’re registered. By linking your account to your tax agent’s, they can also access and assist with your tax details.
How does a business authorize a new tax agent?
To authorize a new tax agent, you’ll need to provide written consent or use your MyGov account to link your business to the agent. We’ll take care of the process and ensure everything is set up correctly.
Why don’t I understand why my cash flow isn’t better?
Cash flow problems can arise from delayed invoicing, poor expense management, or inconsistent sales. A cash flow statement can provide insights into your income and outgoings, helping you spot where improvements can be made.
How can I improve my cash flow?
You can improve cash flow by speeding up invoicing, reducing overheads, negotiating better payment terms, and ensuring you have a solid system for managing debts. We can assist you with cash flow forecasting and strategies to keep your business running smoothly.
At Tax Accounting Adelaide, we understand how overwhelming it can be to navigate the complexities of business tax. That’s why we’re offering a 30-minute free consultation to help you get clarity on everything from managing your cash flow to ensuring compliance with superannuation and tax laws.
Our Services Include:
- Advice on tax audits and compliance
- Guidance on claiming business expenses
- Cash flow management and planning
- Payroll setup and staff management
- Superannuation advice and more
Our mission is to help your business thrive by providing the support you need to make informed decisions. We’re here to simplify the tax process and ensure you’re set up for success.
Ready to get started?
Book your free consultation today with Tax Accounting Adelaide, and let’s make sure your business is on the right track for success!
