How To Pay Less Tax – Top 5 Tips for Tradies

There are so many things to dislike about tax time. You’ve got to collect your records after months of neglect and pay back a hefty sum when the process is done. Not surprisingly, by doing the right thing for your business and organising yourself you can pay less tax. Here we offer you some strategies for keeping on top of your records and ultimately paying less tax.

Keep on top of receipts and invoices

Don’t leave your receipts and invoices on the floor of your car until tax time. You should be keeping on top of your records as they arise. This means recording your client invoices and receipts from your business expenses. One handy way of staying on top of receipts is by using an online accounting service like Just Done. This saves you the costs of hiring a bookkeeper or getting an accountant to do the job, and when tax time rolls around, you’re prepared to hand over records if need be.

Remove the element of surprise

It’s important to keep track of how much tax you owe throughout the year. This way, you don’t get a nasty shock and have to pay back an arm and a leg to the taxman. Just Done is a service that shows you exactly how much tax you owe with an easy-to-read dashboard. It also suggests just how much you need to put away regularly so you’re not stuck with a lump sum to pay back later.

Digitise your records

Bookkeeping software ensures your ‘books’ are digital, but the ATO recommends going even further with  your digital records. Instead of holding on to tired, illegible receipts, try to get all invoices and receipts emailed. If you can’t do this, take photos of receipts and organise them digitally.

Get advice from a human

Every sole trader or independent contractor needs more than just their BAS and tax returns done, they need an expert to give them advice. An accountant can provide this advice, and so can a service like Just Done which provides a holistic service for self-employed people. With personalised advice from a real person, you can get the right business tips to pay less tax.

Know what to claim

Our number one tip for paying less tax is knowing what to claim. This doesn’t mean simply looking up what you can claim when it comes to tax time, but being informed of what you can claim well before. By knowing exactly what you can and can’t claim throughout the year, you’re in a better position to take advantage of these tax benefits and of course, you’ll know which records and invoices to keep. For a quick rundown of what you can claim, head to Trade Busters Academy.

With your accounts Just Done, you can get down to business. Consider us your personal virtual accounting team. BAS, tax, statements, invoices – we do it all, so you can get on with the real work. Sign up for early access today.