Advivo gives you some tips on how you can prepare your business for 2022 tax time.
Tax time is a stressful time for everyone, and running a business means there are a few extra steps. And although there is still time until companies need to lodge their tax returns it’s important to start preparing for this year’s tax time.
How does tax time work for businesses?
Generally, there are three main types of tax returns a business must file:
- Goods and Services Tax (GST) & Business Activity Statement (BAS)
- Income Tax
- Employee-related taxes
If you’ve just started a new business (meaning you’ve registered for an Australian Business Number (ABN) and GST if applicable) your business must lodge a tax return even if you’ve recorded a loss or don’t meet the tax threshold.
Small to Medium Enterprise (SME) tax time is generally due by 28 February for self-preparers. If you lodge through a registered tax agent like Advivo, they will let you know when they lodge your company’s tax return. Businesses with outstanding tax returns for the prior year are given until 31 October to lodge.
Your business must also lodge a BAS, but times for lodging these vary, and the Australian Taxation Office (ATO) will send it automatically when it’s time to lodge.
Our top tips to prepare for tax time
- Reconcile all bank accounts, credit cards and loan accounts up to and including 30 June
- Review your aged receivables/debtors listing and identify any doubtful amounts
- Review your aged payables/creditor listing and identify any trade creditors that may need to be reversed
- For new financing, provide your accountant with copies of the finance documentation showing the date, loan amount, monthly repayment, terms and tax invoices for assets purchased
- Review all “stock on hand” or “work in progress” and identify obsolete work or damaged stock for potential write off
For a full list of tasks to complete before or post-EOFY, visit our checklists page for full, comprehensive checklists.
How we can help
Advivo offers Tax Advice and Structuring services for Brisbane businesses. Our services include business registration for TFN, ABN, and GST; tax registration and lodgement; income tax; tax planning; and tax structuring among other services.
Advivo also offers Monthly Services Programs (MSPs) to help Brisbane businesses grow. Along with helping with annual tax returns, the MSPs offer regular contact and review and monitoring of your financial results and strategic objectives.
As explained above, there are a lot of tasks to complete to prepare for your business’s tax returns. Completing these tasks accurately and on a timely basis is the best way to ensure your business doesn’t get penalised for an inaccurate or untimely lodgement. Please contact our expert advisors at Advivo to help you prepare for your business’s tax returns.