7 Tips To Maximize Your Company Tax Return

Finance

Staying informed and being organized is key to maximizing tax return. By filing the income tax return every year, you can cut down on the mandatory tax effect. It can often get tedious with massive financial records piling up for review. Having a tax return accountant can help waive off the extra effort and time invested in accounting. Have you been looking for tips to increase your company tax return? You can stop getting worked up because this blog is here to get you just what you want.

  • 12-month rule – If you are new to this term, the 12-month rule provides for certain tax deductions. These deductions are amounts provided by the tax department to allow you to lower your income. This effectively brings down the tax liabilities as well. Thus, prepaid expenses are the way to go if you want to save up on your hard-earned money despite increasing taxes. Engage a financial expert in cases of confusion and prepay your expenses to enjoy maximum tax returns. Paying up on your rent, insurance and other necessary expenses in the current fiscal year can help you reduce the tax impact for the following year.
  • Temporary full expensing – This is a temporary measure introduced by the government for businesses. This allows for a total deduction of the cost of eligible depreciating assets. The eligibility criteria limits this offer to companies with a turnover of up to $5 billion. This depreciating measure is advantageous for companies to save up huge on tax returns. For the asset to be eligible, it has to be new or second-hand. It also has to be used or installed under your instructions for a taxable purpose. Making exclusive use of such depreciation procedures is key to a huge tax return.
  • Invoicing – You may review and postpone some of your invoicing in appropriate circumstances. Since invoices have a greater tax value, postponing for the current tax year will help to lower tax impacts.
  • Superfund contributions – Adding voluntary contributions to your super fund may help to reduce the amount of taxes you are required to pay. No matter the amount, you can grow your super and achieve maximum tax returns with regular contributions.
  • Unrecoverable income deductions – You can review debts and claim deductions for the income amount that cannot be recovered from debtors. Although, the claim can be granted depending on your accounting method. Accounting for assessable incomes is done on an accruals basis or a cash basis.
  • Start-up expenses – Claim for a start-up deduction to cut down on the tax effect. Check the ATO website for more details. Start-up concessions are eligible for a grant only if the ESS interests have been acquired after 30 June 2015. Check the ATO website for more information.
  • Seek expert guidance – It is necessary for your tax returns to be appropriate and updated. In order to achieve this, consult a financial expert prior to making any decisions. A financial consultant can help with existing issues and figure out potential risks. They have the experience and skill that can help you be completely worry-free.

If you are searching for the best tax accountant Perth, you need to follow up with a few pointers to ensure the right fit. Keep reading to know more.

  • Look for referrals from colleagues. Generally, known accountants are trusted and flexible. Talking to friends can help you figure out the best accountant that can cater to your requirements without any issues.
  • Compare accountants on the basis of experiences and certifications. These can help you evaluate and decide better.
  • Check for consumer ratings and reviews to understand service efficiency. Review websites for performance details. This can help you fix your expectations correctly and choose an ideal tax return accountant.
  • Once you narrow down to a few options, consult and discuss requirements, services and cost. This will help the accountant and you to come to a mutual conclusion. Whatever suits you best is the right fit for your company.
  • Ensure that the personal tax accountant is licensed and adequately qualified. Do not commit the mistake of compromising on efficiency due to cost-related issues. The fee may be comparatively a tad bit costlier, but his skills can save you considerable costs in the future.

It is alright if your initial judgement fails you, and you end up with the wrong choice. You can always look for another accountant and take a decision. However, it is profitable to make the first selection perfect to benefit the most. In cases otherwise, keep searching for options before you find the perfect match providing superior bookkeeping and accounting services.

The most significant reason for hiring an accountant is to maintain correct tax return records. Thus, it is vital to choose someone who is experienced and proficient. If you have been deciding to hire a partnership tax return accountant, now you know how to choose the best.

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