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Tax time can be stressful for business owners, and even a small mistake can lead to unnecessary expenses, penalties, or missed opportunities. Many business owners unknowingly make costly tax errors that impact their bottom line. The good news? With the right strategies, and a little help from the Attune team, these mistakes are entirely avoidable.
Below, we’ll break down the five mistakes worth avoiding to keep your business tax-efficient and compliant.
Accurate record-keeping is essential for maximising deductions and ensuring compliance. Yet, many business owners fail to track expenses properly, leading to lost deductions or even audits.
Avoid this mistake by:
• Using cloud-based accounting software like Xero or QuickBooks to track transactions.
• Keeping digital copies of receipts and invoices.
• Regularly reconciling bank statements and business expenses.
Choosing the wrong business structure—whether sole trader, partnership, company, or trust—can lead to excessive tax liabilities and legal complications.
Avoid this mistake by:
• Consulting the Attune team to ensure you’re set up with the right structure based on your revenue, risk level, and goals.
• Reviewing your business structure periodically as your company grows alongside your accountant.
• Understanding the tax implications of each entity type.
Many business owners leave money on the table by not claiming all the deductions they’re entitled to. Commonly missed deductions include home office expenses, depreciation, and work-related travel.
Avoid this mistake by:
• Keeping a detailed log of business expenses.
• Understanding industry-specific tax deductions.
• Consulting the Attune team regularly to ensure you claim everything you’re entitled to.
Unexpected tax bills can put a strain on cash flow, especially if you haven’t set aside enough funds throughout the year.
Avoid this mistake by:
• Setting up a separate tax savings account.
• Using a tax forecast to estimate quarterly obligations.
• Staying on top of BAS (Business Activity Statement) and PAYG instalments.
With the Attune team on your side, we can help guide you with forecasting and strategies that work for you and your business, so don’t hesitate to reach out to discuss putting the right plan in place for your tax-planning.
Failing to pay superannuation or payroll taxes correctly can lead to severe penalties from the ATO or worse. Late or incorrect super contributions also mean missed benefits for employees.
Avoid this mistake by:
• Ensuring super contributions are paid on time and in full.
• Using payroll software that automatically calculates tax and super obligations.
• Keeping up to date with legislative changes.
• Consider looking at a payroll audit to ensure you are setup correctly for compliance
With the recent addition of the Voluntary Small Business Wage Compliance Code, payroll should become an error-free zone for your business. To make sure you’re doing all the right things at all the right times, contact the Attune team on 1300 866 113 and let’s ensure you’re compliant across the board.
Tax mistakes can be costly, but with the right knowledge and systems in place, you can avoid unnecessary expenses and compliance risks. If you’re unsure whether your business is making these common errors, Attune Advisory is here to help.
Get in touch with Attune today on 1300 866 113 or send us an email to start the conversation – you’ll be glad you did.
