It’s that time of year again and many businesses across Australia are setting up meetings with their accountant to discuss the year’s tax return.

If you want to make life a little easier this year then preparation is key.

1) Find the details of last year’s tax return

This includes your tax file number, previous income, offsets, deductions and other previous claim info. It’s a good starting point.

2) Keep a printed & digital record of everything

Scan your receipts, use smartphone apps to track your spending and back up your computer files. Having up-to-date digital & printed records means items are easy to send via traditional and electronic methods and are readily available in the case of an audit. It also gives you a digital and printed back up of all of your records.

3) Take advantage of deductibles and offsets

Collect all of the relevant bank and credit card statements, Installment Activity Statements, loan agreements etc. This way your accountant can work through every possible tax deduction available for you and your business.

Tip - Don’t forget to ask your accountant what tax incentives are available to you in order to increase your tax deductions.

4) Enlist the help of a professional

It is important to consult an experienced and registered tax agent as each small business’s circumstance will vary for end of financial year.

 Click below to find an accountant in your area.

 Gladstone & Surrounds

 Hervey Bay & Surrounds

 Southern Downs & Granite Belt

 Goondiwindi

 North Lakes & Surrounds

 Caboolture – Bribie Island – Narangba - Kilcoy

 Moorabool – Bacchus Marsh

Here is a general checklist of items that small business might prepare before seeing an accountant.

Income:

• ▢ Bank statements indicating the nature of each deposit
• ▢ Reconciled cashbook including drawings taken from the business before banking
• ▢ Debtors listing
• ▢ QuickBooks/ MYOB files
• ▢ Bank statements with total interest received
• ▢ Statements of rental income received
• ▢ Statements of shares purchased, sold or held (with price, dates purchased or sold, brokerage/stamp duty)
• ▢ Dividend statements
• ▢ Details of any assessable Government Industry Payments

Disposal of plant and property:

• ▢ Dates and values of purchase and sale
• ▢ Provide asset description

Capital Gains:

• ▢ Details of any other personal or business assets acquired on or after 20/09/85 that were sold in the tax year.
• ▢ Details of additions/improvements to assets.
• ▢ Calculate annual turnover – provide details as necessary

Expenses:

• ▢ Statements for all loans owing by the business, with an end of financial year balance and interest paid.
• ▢ Copies of payment summaries and annual reconciliation for salaries and wages.
• ▢ Information relating to super contributions made for each employee and director.
• ▢ Details of all rental property expenditure incurred
• ▢ Date of purchase of rental property as per contract.
• ▢ Rent paid by business
• ▢ Expenditure on motor fuel, oil, registration, repairs etc Log books
• ▢ Vehicle odometer readings for the first and last date of the financial year.
• ▢ Total business km for financial year Engine size
• ▢ Travel diary and other documentation
• ▢ Details of Insurance policies, providers, premiums, amount covered
• ▢ List of all business assets showing date of purchase, price, description, hire purchase or lease details.
• ▢ Details of any repairs or maintenance to business assets during the tax year.
• ▢ Leased plant and motor vehicles
• ▢ Detailed list of all plant and motor vehicles leased and expenses for each including contracts.
• ▢ Name of Superannuation fund, policy number, contributions paid on behalf of each of the owners of the business.
• ▢ Petty cash expenditure summary, expense items
• ▢ Documentation of other items you think might be deductible – cheque butts, receipts.
• ▢ Value of opening stock on hand at 1 July and closing stock at 30 June.
• ▢ Creditor and debtor details
• ▢ Personal income tax/investment details
• ▢ Spouse/children income and investment details