A huge amount of work normally goes into managing a small company, and business owners are usually tasked with managing everything all at once. From marketing, sales and operation, accounting, payroll, tax compliance – and all in between – business owners have loads of obligations to meet. Above all the mentioned responsibilities, tax compliance is especially significant. However, although it may sound too complicated, it doesn’t have to be a hassle if you take the right measures.
Here are three accounting tips that you can follow to experience a more convenient tax compliance practice:
1. Keep Your Records Reliable and Accurate
Reliable documents are required to make accurate financial statements. Since tax compliance is mandated by law, accuracy is important if you’d like to avoid paying hefty fines or penalties. A detailed and accurate record-keeping not only makes the lodging process even smoother, but it can also make monitoring your overall business’ progress a lot simpler.
2. Prepare All Mandatory Reports Ahead
Every financial year, business owners are mandated to submit various reports in compliance with their legal responsibility to pay their business and income taxes. The two key documents are the Income Tax Return and the Business Activity Statement (BAS). It is important to keep in mind that preparing and lodging all mandatory returns, documents, and reports prior to the end of each financial year is a necessary step in achieving full tax compliance.
3. Seek Help From Professional Accountants
If you’re a new business owner, it’s normal to be unaware of the ins and outs of Australian tax compliance. This is why working with a reliable small business tax advisor make things much smoother. Whether you’ve recently established a business or have been managing one for quite some time, it’s always beneficial to seek help from experts, like the professionals here at Prosperity Accountants, to ensure that you understand the complexities of tax compliance. Call us on 08 9443 5199 or fill out our contact form.