Small business tax planning tips: The do's and don'ts - William Buck

Small business tax planning can be daunting, especially when it’s another task on an already packed To Do list. Here are some quick do’s and don’ts to ease the EOFY stress:

Do:

• Keep records up to date year-round. It can make all the difference at tax time. 
• Invest in software training to improve efficiencies.
• Write off unrecoverable debts, obsolete inventory, and assets no longer generating revenue.
• Plan ahead by forecasting profits and setting aside cash for tax bills.

Don’t:

• Miss key tax dates. ATO penalties can add up quickly.
• Cut costs by skipping expert advice. It could cost you more in the long run.

Overdraw funds. It may result in a deemed dividend.