Staying on top of taxes is crucial for any small business

If you're running a small business and you're intent on growing it into a larger one, you must have a good handle on your finances. Developing your business is only possible if you know how much money you're making today, how much you plan to grow that number by tomorrow and what risks are standing in your way.

With this in mind, it's essential that you stay on top of your company's tax situation. Especially with a smaller business, paying your payroll tax bill and handling other tax-related obligations can be a massive burden, and it's one you need to prepare for well in advance by crunching the numbers and making good, proactive decisions.

If you're not up to this challenge yourself, it might be wise to reach out for some help.

Figuring out what you owe

One of the essential steps toward true small business growth is getting a good handle on what your company owes, come tax season. This can be tricky to figure out because, according to the Small Business Development Corporation within the Government of Western Australia, your obligations vary based on the structure of your business.

For example, if your company is run simply by one sole trader, then that individual is responsible for declaring their gains or losses as part of their personal income and paying individual taxes. If it's a partnership, then each partner gets a percentage of the tax burden based on the percentage they own. There are also separate laws for corporations and trusts. Figuring out where you fall in this system is a key first step.

How you can plan effectively

Even if you're running a fairly small business, you need to devote a lot of time and energy to tax services. Making mistakes in this area can lead to sloppy financial decision-making that jeopardises your company, so diligence is necessary.

Pay attention to your expenses and document them well.

Every expense your company incurs, ranging from big ones like a new employee's salary to the smallest of small purchases, needs to be documented. You also need to carefully study the deductions available to you and seek out ways to reduce your burden if possible.

Professional help is always available

If you decide that your company needs some help with tax planning, that's not a problem. At Wilson Porter, we have a staff of chartered accountants on board who are ready to provide whatever advice or hands-on assistance you need.

Our goal is to help you develop your business by executing your strategy in a tax-effective manner. The landscape is always changing, and the regulatory picture is complex, but we can help you make sense of it. That's what we do best.