Tips for small business owners
We see common behaviours among small businesses that get their tax right. These tips will help you to pay the right tax.
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Seek advice and support
A tax professional can help keep you on track and avoid costly mistakes.
Make sure you:
- choose a tax agent or BAS agent who is registered with the Tax Practitioners BoardExternal Link or a reputable bookkeeper
- keep your tax professional in the loop – regular contact will help them understand your business and give you the right advice
- talk to your tax professional or come to us if you’re unsure of something or considering making changes to your business.
Check your business structure
Unnecessarily complex business structures can overcomplicate tax
obligations. Talk to your tax agent to ensure your business structure suits
the needs of your business.
Keep good records
Keeping good records is essential and will make it easier to report to us:
- Talk to your software provider or tax professional to check that your record keeping processes meet current requirements.
- Make sure you conduct regular reconciliation processes by cross-checking figures with your bank statements and source documents (for example, till tapes, tax invoices and receipts).
- Use suitable digital systems to run your business, such as point of sale software, accounting systems and mobile apps. These products can save you time and help you report accurately.
Get your income and expenses right
Ensure what you report is accurate:
- Report all your business income, even if it has been paid in cash, or into a private account. We use data matching and benchmarking to help us identify hidden activities.
- The figures you report need to be exact – so keep up to date records from the start and don't try and ‘guestimate’ after the event.
- Make sure your deductions relate to your business, and that you have the required evidence to support your claims.
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