Tax tips that could save your small business money

It usually only gets the limelight in June, but giving tax a little attention year-round could have big benefits for your business.

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I'm not going to sugar coat it, tax isn't the most exciting topic in the world. But while it might not spark joy in most of us, it can help save you money - and that's why we're here.

We've partnered with American Express Business Cards to bring you some straight-forward tips on managing tax and making it work for you.

Partner with an expert

First things first, where would we be without accountants and tax specialists? They take on the tasks we really don't want and they do a damn good job of it too.

So, if you're only seeing your accountant come tax time, you're missing out. Tax specialists and accountants can help you leverage tax breaks throughout the year and help you create a plan that could not only save you money, but help your business grow too.

You should be looking at accountants and tax experts as strategic partners that sit alongside your business. Not the person you just check in with once a year to put your receipts in order.

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Collect points on your ATO bill

If you have to pay a whopper of a tax bill, you might as well be rewarded for it, right? Well, if you settle your tax bill on an American Express Business Card, you can do just that.

For example, you can earn one Membership Rewards point for every $1 paid to the ATO² via your American Express® Platinum Business Card. Those points can then be redeemed for gift cards¹ to a huge variety of retailers or can be converted into credit².

American Express Cards do come with an annual fee, but it may be tax deductible if you only use it for business purposes. Just make sure to double check with your tax advisor.

🔥 Hot tip: Rewards go beyond ATO spend. American Express® Platinum Business Card Members can also earn 2.25 Membership Rewards Points for every $1 spent excluding government spend.²

Keep track all year

If you diligently track your expenses, you'll have a much easier job come tax time and you'll be less likely to miss something. Plus, you'll waste less time getting all of your evidence together, so you'll be free to get on with what you're good at. Wins all round.

Accounting software is the easiest way to do this and comes with a whole heap of other benefits too. Some platforms can even be integrated with your banking and credit accounts.

For example, all American Express Business Cards come with MYOB integration as an embedded feature. MYOB is a popular accounting feature which lets customers set up an automatic data feed of transactions and keep a close eye on everything.

Importantly, it also lets you track and prepare BAS and GST reports. You can even generate automatic tax reports and have them sent straight to the ATO. If that isn't streamlined, I don't know what is.

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Look into loss carry-back

When the budget was released, the government confirmed the extension of its loss carry-back scheme for another 12 months. While the program isn't suited to all businesses, it's worth looking into.

Basically, it just means incorporated businesses will be able to use recent tax losses to offset previously taxed profits. Unfortunately, it doesn't apply to sole traders, partnerships or trusts.

If you are among the eligible companies, when you lodge your 2022-23 tax return, you'll be able to offset previously taxed profits from as far back as the 2018-19 income year, and potentially receive a tax rebate. As always, get advice from a tax professional to check how you could benefit.

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Look into full expensing

The government has also extended its full expensing scheme to 2023, which means the vast majority of businesses can now immediately deduct the full cost of capital items.

That's things like fixtures and fittings, technology and security equipment, tools and machinery, motor vehicles, solar systems and even office furniture.

Again, claiming an immediate deduction isn't always in the best interest of every business. For example, if your business is running at loss, or the deduction for capital assets will cause a loss, you might struggle to make use of that loss.

But, if you think you could benefit from the scheme, it's worth chatting to an accountant or tax specialist. Again, they'll be able to guide you on how to best use tax incentives.

Earn rewards on everyday business spend with American Express

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• American Express T&Cs

  ¹Gift Cards: Gift Card or voucher rewards are not redeemable or exchangeable for cash or credit. Normal retailer gift card or voucher conditions apply, refer to the gift card or retailer website for details. Minimum redemption amount applies.

  ²For each successful transaction with Select + Pay with points, points will be debited from your Membership Rewards Account and a credit placed on your Card in line with the points chosen to be used for the Eligible Charge. Minimum redemption amounts apply. Any credit to your Card Account cannot exceed the amount of the relevant Eligible Charges. A credit will appear on your statement identified as "Rewards Credit". Points will be debited immediately and the credit will take up to 3 business days to appear online. Credits processed after the Card Account's statement closing date will appear in the following statement. You are still responsible for payment of the amount due on your Card Account by the due date. Select + Pay with points is not available for redemption by Corporate Card Accounts and is not redeemable for cash via Credit balance refund.