Understanding your Tax Liabilities

Understanding your Tax Liabilities

  23 Nov 2018

Any new business has many aspects that require careful consideration and understanding one’s tax liabilities is a crucial element of a successful company. We have always paid taxes, nothing new there, and with so many tariffs and levies in modern commerce, it can be a challenge to remain compliant. Which is why you should consult a business tax accountant at the very outset, as he or she can make sure that your business is structured in a way that minimises your tax liabilities.

Tax Planning

An experienced firm like Watson & Watt, business tax accountants in QLD can help you to plan your taxes for the next 5 years, and with some professional guidance, you will be in firm control over the direction your company takes. All it takes to make contact with a small business taxation specialist is an online search and they will more than likely offer you a free consultation to ascertain exactly what they can do for you.

Tax Compliance

Providing your business is always tax compliant, you will not be bothered by investigators and you can focus on providing first class customer service. Your accountant will know where the lines are and will always have your best interests at heart, thus ensuring tax compliance, while taking advantage of available concessions.

Creating Financial Statements

These are essential for any growing business, and can help you to plan the future, as you have an accurate evaluation of the current status of your company. A financial statement can tell you whether or not you are turning a profit, and if so, exactly how much – if you want to raise your prices, the financial statement will tell you whether this is feasible. Your tax accountant can help you to compile accurate financial statements, which will ensure that you are always up to date, and by planning your future taxation liabilities, you will be minimising your tax bills.

GST

This is a tax levied on the consumer, so technically, your business does not have to pay the tax office, rather you collect the GST amount from your customer and pass it on to the government. Not all businesses deal with GST, but if yours does, talk to your accountant, who would be able to advise you accordingly. There are ways that this GST transfer can be delayed for up to 4 weeks, which is handy for cash flow issues, and your accountant can do the necessary to prolong the time until you must pay.

Tax Concessions

Many Australian states offer tax concessions for businesses that meet the requirements and the best way to discover whether or not you qualify is to talk to a business tax accountant. This is a complex field, yet with an expert in your corner, you can be sure of taking full advantage of all available tax concessions.

If you are not careful, your tax liabilities could be a lot higher than need be, and by talking to an established taxation specialist, you can be sure of keeping your tax payments at an acceptable level.