There is no getting away from the fact that taxes can be a major cause of stress for a lot of small business owners. But, it does not need to be this way. Read on for some helpful tips.
Keep Business and Personal Expenses Separate
One of the biggest mistakes that small business owners make is keeping both their business and personal expenses in the same account. Instead, you need to have separate credit cards and separate bank accounts. You need to be strict with your use of them as well. Don’t think ‘oh I’ll just put this on the business card and I’ll sort it later.’ It’s easy for things to slip. Instead, avoid confusion and any problems by using the right cards and the right bank accounts for each purchase.
Use Software to Streamline Your Accounting
The likes of OnPay Solutions can help you to automate and streamline your accounting requirements so that you can reduce errors and enjoy greater efficiency too. It is time to get rid of those outdated accounting measures!
Claim for Travel
Claiming for the costs that have been incurred when making a journey is something that a lot of business owners don’t do, or don’t do correctly. This is because they are unsure regarding what is tax deductible and what isn’t. Whether you are making a trip to purchase office equipment or you are going to a training event or client meeting, if it relates to your business, you can claim. But, what can be claimed?
- Mileage using your own vehicle. You can claim mileage. There are different rates depending on the type of vehicle you use, so do keep this in mind.
- Hotels and meals – If your business trip requires you to stay away from home, you can claim for overseas stays per night and for in-state stays overnight for personal incidental expenses.
- Subsistence expenses – This could be lunch while out with a client, for example.
- Parking – This includes tolls as well as congestion charges.
- Travel fares – You can claim for taxi, bus, train, and air fares.
Cycle to Work Scheme
There are a lot of different benefit schemes to consider, and one option to consider is the cycle to work scheme. It is surprising how many businesses overlook opportunities like this one. For the past few years, this scheme has been in operation, and it means that employees can save up to 25 per cent of the cost of a new bike. For you, it means tax benefits. In fact, there are other advantages too, such as fewer parking spaces required and a healthier workforce, which often means a more productive workforce.
Follow the tips that have been mentioned above and you can really change the way you do taxes at your business. Not only will you ensure you are paying the lowest amount of taxes that is required by law, but you will find the process itself a lot easier and more straightforward.