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Maximising Your Tax Savings: Tips From Top Accountants in Perth

Did you know you can reduce your business tax by the end of the financial year? All Australian businesses must pay taxes at the end of each financial year, but what if you could reduce yours? This is possible with the help of some tax-saving strategies and tips. These strategies can save you much, depending on your tax situation. To understand how this is possible, here are some tips from the best Perth accountants you can try.

Hire A Professional Accountant

Seems obvious, right? Well, not all businesses believe they need the help of an accountant when dealing with their taxes. Accountants are financial professionals with a vast understanding of tax laws and financial planning. Their advice can help you develop a scalable strategy and identify your inefficiencies to save on tax. Therefore, don’t try going at it alone; get the help of a professional accountant in Perth and let them oversee your books. You can channel that free time into streamlining your business goals and profits.

Maximise The Business Expenses

Try using the business expenses as much as possible. Some include allowable expenses like;

  • Communication expenses,
  • Travel expenses,
  • Household expenses,
  • Insurance policies

If you aren’t sure about your business expenses, you can always talk to your accountant. They will explain what you can and can’t claim to ensure you maximise these expenses without breaking the rules.

Manage Your Accounts Receivable

When working with accountants in Perth, they will help you review your debtor’s accounts, also known as accounts receivables. If there is any money you haven’t received owed to the company, you should write it off as bad debt. This might help you get tax deductions.

Watch Out For The Buy-Sell Agreement Tax Pitfalls

Buy-sell agreements are crucial as they control the next steps forward for a business in case of the owner’s death or disability. These agreements are funded by life insurance, but the proceeds aren’t included in the beneficiary’s taxable income. In case of the owner’s death, their business ownership interest is included in their estate for the estate tax. However, if they had a buy-sell agreement, it might provide for purchasing the business interest from the state. This can help reduce the estate value, thus reducing the estate tax.

Invest In Pension

Pension schemes are crucial for helping maximise your tax savings. It’s a great way to save for your future while avoiding additional taxes. Pension deductions are usually made before you pay the income tax. This gives more returns for your income even if you can’t access your money immediately. However, you can still enjoy your money tax-free even after retirement; you can withdraw up to 25% of your savings tax-free.

Take Advantage Of The Employee Benefits

While employee benefits are designed for employees, they also offer tax relief for employers. Working with an accounting firm in Australia will help you understand how these expenses work and that deducting them before tax means you get additional tax-free perks. This also helps reduce your total tax. Some of these expenses include;

  • Cheap canteen meals, office parking,
  • Life insurance,
  • Childcare arrangements,
  • Work phones, and 
  • Pension advice.

Working with an accounting firm in Australia is a great idea when trying to maximise your tax saving. These professionals comprehend all things tax and financial planning. They will offer expert advice and help you take advantage of tax relief strategies ensuring you get the most out of your money while staying compliant and complying with tax legislation.

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