End of financial year is a great chance for businesses to assess their financial standing and make valuable tax deductions when preparing their returns.
There are the usual deductions that businesses are well aware of, but there is also a raft of other options that you may not even realise.
Here are some of the top items small business owners can claim on tax, bordering on the unknown to the unusual.
For many industries, you are stuck with paying for your own laundry expenses.
The way around that is to put a logo on everything you wear to work. Slap those logos on your hi-vis, your business shirts - anything you wear in the line of work - and you can then claim laundry on tax.
You can even claim for the cost of putting the logos on.
If you mostly work outside, eye protection is essential and tax deductible.
So you can ditch the servo sunnies and get some real sunglasses before EOFY safe in the knowledge you will be able to claim it straight back.
All of your sun protection is deductible as well, including sunscreen so make sure you keep those receipts.
A dog and its expenses
It has long been known that you can claim a guard dog for your business, as well as the expenses associated with looking after the animal.
But what about your household pet?
More and more people are working from home in 2019, with 1.3 million Australian enjoying the benefits and low rent of a home office.
If you have a dog to secure your home and you have a home office, you can claim the associated expenses and the cost of the dog in proportion to the percentage your home is used as an office.
Other home office expenses
If you have a home office for your business, a dog is only the start of what you can claim.
Your IT gear, phone, electricity and water expenses, furniture, heating and cooling, software and even your rent or mortgage can be claimed as legitimate small business expenses.
More information on what you can claim and how to work out the percentages is available here.
Having a disappointing year in business
If you are facing a financial loss this EOFY, you will obviously want to lesson the impact of tax time as much as possible.
This loss can be offset against other incomes, like salary and wages. Speak to a financial expert about ways you can navigate these difficult waters.
Bad debts from clients
If you can prove that you have made a genuine attempt to recover your bad debts from customers who did not pay during the financial year, you can speak to your financial advisor about ways to write these debts off before EOFY.
Almost any item you have bought for your business for under $30,000
The Federal Government’s popular instant asset write off has seen a proposed revision of a $30,000 threshold.
Any item you have purchased during this financial year for $30,000 or less can be claimed, including large ticket items like vehicles, machinery, IT equipment and anything else you have purchased to improve your business.
Call Morris Finance on 03 5223 3453 for help and advice on all aspects of business finance.