Deciding to finally take the plunge into the world of business tax compliance and start your own enterprise is exciting. As a new business owner, there is a lot to consider and it’s important that you stay organized to ensure that nothing slips through the cracks. From finding business premises to hiring a team, completing your GST registration and everything else you have to do when you’re starting a business it can be easy to become overwhelmed.
Prioritizing the tasks ahead of you is essential. Figuring out your financial tax compliance is always a smart place to start. Not only do you need to consider your day-to-day business costs, but you also need to give careful consideration to your tax obligations. Failing to meet what is required byte the Australian Taxation Office (ATO) could result in your business facing fines and other penalties. As a new business owner, it’s crucial that you take the time to ensure that your business fully tax-compliant from the outset.
Let’s take a look at four useful tips to help you make sure that you are tax compliant.
Know The Requirements
To ensure that you meet all of your tax requirements, you need to fully understand exactly what your obligations are. The two main business income reports you will need to prepare are your Business Activity Statement (BAS) and your income tax return. If you are an employer, then you will also need to report payroll and superannuation information to the ATO using the Single Touch Payroll system. Spend some time reading about your obligations on the ATO website so that you know exactly what is expected of you come tax time.
Keep Meticulous Records
Keeping accurate and complete records throughout the year will save you a lot of headaches when tax time rolls around. Make proper record-keeping a habit. Maintaining accurate financial records will not just help you to stay on top of your tax reporting obligations but it will also help you to track your business performance with more precision.
Seek Out Professional Advice
Completing all of your business tax requirements yourself can be challenging. What’s more, submitting your returns, forms, and reports incorrectly or late could result in penalties for your business. If you are unsure about any of your tax obligations, it’s always wise to seek out professional financial advice. An experienced business accountant will be able to advise you what you need to do to be tax compliant.
Be Aware Of Updated Requirements
Your reporting requirements could change from one tax year to the next so be sure to stay up-to-date with any recent changes to tax legislation. To avoid incurring penalties, you may need to make adjustments to your reporting processes to ensure compliance. The ATO will typically give business owners plenty of notice about new changes to reporting requirements, however, it’s always best to make changes as soon as possible to minimize disruption to our business.
Make Sure That Your New Business Is Tax Compliant
As a new business owner, you need to be diligent when it comes to your business financing. Meeting your tax reporting obligations will ensure that you don’t face any expensive fines or penalties in your reports. Make sure that you understand exactly what your obligations are and put processes in place from the very beginning to ensure that they are met.
With the right approach to tax compliance, you can be sure that your business always operates above board and that you are fully-prepared when tax time rolls around. Having all of your reports and financial data prepared well in advance will allow you to focus on the more critical aspects of your new business moving forward.