For most us, just thinking about the time and effort it takes to file a tax return can be taxing in itself.

It doesn’t have to be this way, though.  With a bit of organisation, the help of a virtual accountant and the following tips, tax time can be made much easier to cope with.

Claim your SMB Advantage

Good news for small and medium-sized businesses – until the end of June 2017, you are eligible for extra tax incentives for individual assets that cost less than $20,000, instead of spreading this lump sum over the years. Use this to expand your business or to develop new services and/or products.

Pay Next Year’s Expenses in Advance

Pre-paying expenses for up to 12 months in advance can already spell deduction for the current financial year. Some fees and expenses you can pay in advance include rental property, corporate and council rates, utilities, subscriptions and protection insurance. As a bonus, you also get to reduce small business costs if pre-paying can give you discounts.

Hold Onto Your Receipts

Aside from your SMB advantage, you can also increase your chances of claiming more tax deductions by keeping any receipts under $300 and purchased for your business. Be it computer hardware, office supplies or gas receipts, collect these and you can come up with a sizable deduction - something you can add to your cash flow.

Minimise Capital Gains Tax

You can actually reduce your capital gains tax by selling assets that incur a capital loss to offset those that have made a capital gain.

Concessions are also available, such as a 50% Capital Gains Tax discount, where assets are held for over 12 months. Contact us now to see if this is available to you.

Write Off Bad Debts

Even if it’s not the end of the financial year, writing off bad debts early can contribute to deductions – just make sure that these are included in your assessable income to be qualified. This is especially important to cash-based small businesses that can only declare income as they are paid.

Declare Self-education Expenses

Educate yourself and gain not only knowledge but also money, as this kind of expense can also be counted as a tax deduction. For any study opportunity that is related and can be used to improve skill sets and to increase income/profitability, you can claim expenses from course fees, student union fees, books and depreciation of learning materials such as computers.

Don’t wait until the end of the financial year – use the extra cash to keep your business up and running. If you lack the time or need assistance in declaring your expenses, a trusted virtual CFO can to your numbers in order.

Cutcher & Neale’s myCEO Service aims to drive all aspects of your business towards achieving its full potential through an internationally recognised systematic process. If you need accounting and tax advice, contact us to find out how we can help you.