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It is important to lodge a tax return every year. However, not everyone is an expert in preparing and filing tax returns properly. Many people make mistakes when they file tax returns because they don't have enough knowledge about tax matters. For this reason, small business accountants in Melbourne are being hired by many companies. When small businesses make mistakes during tax season, they don’t know how to tackle those mistakes. Keep reading this blog to learn about tax return amendments and common mistakes that can be removed during tax season.
What are Tax Return Amendments?
A tax return amendment acts as a correction to tax returns that you previously filed. It is a chance for taxpayers to resolve mistakes in their tax returns to reflect correct changes in the tax returns. Another advantage of tax return amendments is that they may correct deductions and income. The ATO accepts tax return amendments within the specified time limits to allow taxpayers to adhere to tax laws. If you don’t know how to lodge or amend your tax return, you can seek help from tax accountants for small business in Melbourne.
Mistakes Small Business Owners Make When Filing Tax Returns
When you notice that you made a mistake while filing your tax return, you don’t need to panic. First of all, it is recommended to seek help from expert tax accountants because they know how to lodge tax returns without making any mistakes. Furthermore, if you tried to file a tax return on your own and made a mistake, you should ask for expert advice. Take a look at the following points to know what mistakes you should avoid when preparing and filing tax returns:
Claiming Tax Deductions You are not eligible for
According to the ATO, tax deductions can be claimed by Australian citizens. No doubt that they go after taxpayers who don’t show their profit overseas to avoid paying taxes. You should also know that they also consider checking your accounts and financial transactions. Now, the ATO looks after every item that you claim for deductions. You will be targeted by the ATO if the deductions seem to be too high with no receipts for the same. A small business accountant can help you claim the rightful deductions.
Not Paying Taxes on Time
You can manage your cash flow and reduce the stress of paying annual taxes by making prepayments. If you want to make prepayments, then you can do this at any time when you want. However, even if you are not paying tax returns on the specified date, then you have to pay a penalty along with your taxes. To avoid this, hire a tax accountant who will be responsible for paying taxes on time on your behalf.
Not Keeping Financial Records
Even a small business has a fair amount to keep everything organised ahead of tax season. If you keep your documents organised throughout the year, then they can make the tax season smooth for you. An accountant can help you keep track of all financial activity throughout the year and simplify your yearly tax returns. To manage your business books, you can hire a Melbourne bookkeeper for your company. The following are important documents that you need to maintain:
Credit card statements
Sales receipts
Expense invoices
Bank statements
Records of superannuation, wages, contracts of employees, and tax declarations
A list of your debtors and creditors
Not Seeking Help from a Tax Accountant
An expert tax agent knows alternative solutions for all types of tax problems. They know how to prepare and file tax returns on your behalf. They also know about possible tax deductions that your business can claim. If you want to hire an accountant near your area, you can also search for a small business accountant near me.
Tax time doesn’t need to be stressful. Your tax season can be smooth and stress-free if you have organised and accurate records that need to be used when filing tax returns. If you don’t know how to prepare and file tax returns, you should get help from an expert tax accountant. For more accounting solutions for your company, you can reach Reliable Melbourne Accountants.
