💡Choosing the right business structure can significantly impact your tax rate.
📅Operating on a cash or accrual basis affects the timing of when income and expenses are taxed.
💰Claiming tax deductions for legitimate business expenses can lower your tax liability.
🏦Making concessional super contributions can reduce your taxable income.
📉Utilizing asset depreciations can provide immediate deductions for eligible business assets.
How does choosing the right business structure impact my tax rate?
—Different business structures have different tax rates, so choosing the right structure can help you reduce your tax liability.
What's the difference between cash basis and accrual basis?
—Cash basis records income and expenses when they are received or paid, while accrual basis records them when they are earned or incurred.
What kind of expenses can I claim as tax deductions?
—You can claim legitimate business expenses that are incurred to run your business and prove that you are out of pocket.
How do concessional super contributions lower my taxable income?
—Concessional super contributions are taxed at a lower rate than your income tax rate, so making contributions can result in tax savings.
What are asset depreciations and how do they provide deductions?
—Asset depreciations allow you to claim immediate deductions for eligible business assets instead of spreading them over several years.
00:00Introduction: Many small business owners face stress and hefty tax bills at the end of each financial quarter.
01:59Key Insight 1: Choosing the right business structure can significantly impact your tax rate.
03:39Key Insight 2: Operating on a cash or accrual basis affects the timing of when income and expenses are taxed.
05:48Key Insight 3: Claiming tax deductions for legitimate business expenses can lower your tax liability.
06:55Key Insight 4: Making concessional super contributions can reduce your taxable income.
08:18Key Insight 5: Utilizing asset depreciations can provide immediate deductions for eligible business assets.
09:59Conclusion: Seek professional advice to ensure tax efficiency and meet all tax obligations.
