Feel like fist pumping at tax time because your financial situation is ship-shape? If this sounds like you, here’s a big high five! You’re a step ahead than most of us.
For trade business owners struggling to cope with the end of the financial year shenanigans, Lifestyle Tradie has complied these quick tax tips to help you through. There’s even a tax deduction for tradies you may not know about.
1. Good versus a great accountant
While it may be a little too late to cover off for this financial year, you absolutely need a great accountant moving forward. But what does this actually mean?
You want your accountant to have your back. A great accountant does more than the standard job of keeping your financial records accurate throughout the year.
Our business coaching for tradies model highlights four principles designed to give trade business owners confidence when working with an accountant.
Time and frequency
At Lifestyle Tradie, we recommend you meet with your accountant at least three times a year, each with a specific purpose.
Industry knowledge and experience
Does your accountant specialise in trade business? This benefits you because they’ll be familiar with your company structure and daily operations.
Tasks
What can your accountant actually do for you? Poke your accountant to do his/her best work for you by knowing the right questions to ask them.
Technology
Is your trade business paperless? If not, why? Cloud accounting applications provide better security, flexibility and will streamline financial processes.
Keen to get started with a great accountant? Before you commit, understand exactly what your accountant should be reviewing, how often, and how deep.
2. Reporting
The day-to-day running of any trade business is bloody relentless.
The thing is, your tax obligations won’t magically go away, because it’s in the too-hard basket. That’s why it’s important to focus on knowing what you need to do, when you need to do it, and getting a great accountant in your corner.
Staying up-to-date with your business activity statements (BAS), GST annual return, fringe benefits tax return (among others) will be a big relief.
Importantly, be certain about what you can claim as a trade business.
What you may not know is, tradies can claim a 100% tax deduction for work-related self-education expenses. For example, Lifestyle Tradie is a recognised education provider. Why not consider our business coaching membership program?
3. Cashflow forecasts
Cashflow can be confusing.
You may have made money on paper, but where’s the cold, hard cash? Before you go ahead and spend big on instant tax write-offs, get clear on your financial capabilities now – and in the future.
There are simple ways to improve your cashflow, and ultimately, profits.
4. Goals for 2020
Finally, these tax tips wouldn’t be complete without factoring in your goals for the next financial year. What’s the point in all your hard work? Good financial planning is often the difference between nailing your goals, and not achieving them.
If business growth is a goal in 2020, we’d love to work with you. Meet the Lifestyle Tradie team, including co-founders Andy and Angela Smith, at one of our Next Level Tradie live events near you.
What’s next?
- Join our Kick-Ass Tradies Facebook Group, for access to trade business specific conversations, tips and resources, plus a like-minded community of tradies.
- Book a 15-minute Game Plan Call with Andy, owner of Dr. DRiP plumbing and co-founder of Lifestyle Tradie, to clarify your priorities and get clear action steps.
