When the question comes up “What do you mean by tax return?”, the answer is not as simple as you might think.
Firstly, a tax return is often thought to be a way to get your tax returned to you. This is an easy mistake to make.
In fact, a tax return is a document that notifies the tax office of how much income you received and any tax that you have paid on that income. This becomes a more complicated matter when there are different streams of income and identifying what is the primary source of income.
Having your tax return deliver the best result
There is often the misconception that completing your own tax return will save you valuable time and money.
The first thing to ask yourself is – “Is doing your own tax the best use of your time?”. There is a monetary factor to consider when it comes to how you use your time, especially if you are the business owner.
This question becomes more complex when you consider that you need to be across all your finances and the latest taxation regulations if you want to make the most of your situation.
An important thing to remember is that there are a variety of things that can impact on what you may or may not owe and what you can legitimately do to minimise the tax you pay.
Having the expertise to work out all the different approaches to your financial and tax obligations can prove to be one of your most valuable assets. That’s where the professionals can help make all the difference to your bottom line.
The variables of tax
There are a number of key factors that can affect your taxable income and these include everything from:
- Tax rates
- All applicable deductions
- Tax thresholds
- Reporting and statements
There is a special strategy regarding when it is best to lodge your tax return. Legally delaying any payment can save you money in the long run. It can also be advantageous to lodge your tax return as early as possible to access any refund amount and reinvest those funds or pay off a debt.
Professional help with taxation
The intricacies of how best to juggle the complexities of tax and your finances is best left to the professionals.
There are constant changes to taxation legislation that can have both minor and major impacts on your accounts and your compliance.
With a range of business incentives and programs available, often running concurrently, there is a real chance to miss something that can benefit your business. Assessing asset acquisitions to identifying the best structure for your company takes an in-depth knowledge.
That’s where a full understanding of tax structures and quality accounting services can be extremely beneficial.
Financials as part of a business plan
Having your tax and financial standing laid out clearly means you can take a more strategic approach to your business planning.
Something as simple as a tax return can have complicated aspects to it. This becomes more complex with the issues of a business and how to handle managing risks, assets write-off, on-going deductions and depreciation along with when to make payment of expenses.
Without knowing where your business finances are both currently and beyond can be a dangerous business practice. Rather than tackle financial issues alone, it makes sense to have experts looking after you and your business accounts.
How to make the most of your financial situation
Knowing exactly where you stand with your finances can help you today and for tomorrow.
With a clear understanding of what you owe or will receive in regard to your taxation means you are better placed to take advantage of whatever business opportunities arise.
With your tax, accounts and finances being looked after by the financial experts at Ruth Watson and Associates, you have a better chance to make a better future.
Getting the experienced team at Ruth Watson and Associates on your side can be one of the best business decisions you ever make.
To learn more about how you can make more of your financial position, get in contact today – just Click Here.