Tax filing is simply the submission of your tax forms, or tax return, to the relevant government authorities to deduce your taxable income and tax bill. In the case of Australia, this function is performed by the ATO.<\/p>\n
A tax return needs to be lodged by businesses and individuals each tax year, which is defined as between 1 July and 30 June.<\/p>\n
Why do we care about the preparation of tax returns?<\/strong><\/h2>\nSo why do you need to file your tax returns every year? Why is this important and what function does it serve? It comes down to taxes and how much you owe the government.<\/p>\n
When you earn business income<\/a>, you need to add income tax on these earnings. This is so that when it\u2019s time to lodge your tax return, the ATO can ascertain exactly how much tax you need to pay to them for the year.<\/p>\nHow to prepare taxes for small businesses<\/strong><\/h2>\nThe preparation of your tax return will depend on what type of business you operate<\/a>. Generally, you can either do your own taxes or rely on a registered tax agent to lodge on your behalf. In this article, we\u2019ll outline different business types and how to prepare your tax return for each.<\/p>\nWhat to include in the tax return<\/strong><\/h3>\nThe information you\u2019ll need to include on your tax return will depend on your business structure, and will also become immediately clear once you undertake the process or talk to an accountant or tax advisor<\/a>. However, as a business owner, you\u2019ll most certainly need to keep records of your income and expenses.<\/p>\nOther reporting requirements (such as PAYG and GST<\/a>) will be covered by your BAS statements<\/a>, not your tax return.<\/p>\nHow to lodge your tax return<\/strong><\/h2>\nTax returns can be lodged in a few ways. How you choose to lodge is also based on your business type or structure.<\/p>\n
In terms of lodgment procedures, there are also several options. The procedure you choose will depend on your circumstances, personal preferences and business structure.<\/p>\n
![\"\"](\"https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2023\/03\/Infographic_How_to_do_a_tax_return.png\")
<\/p>\n
Sole trader tax returns<\/strong><\/h3>\nSole traders lodge the same income tax return as individuals. Sole traders, will need to fill out an additional supplement called \u2018business and professional items schedule for individuals\u2019, but only need to file one tax return<\/a>.<\/p>\nTo lodge your tax return, you can:<\/p>\n
\n- Complete it online via the ATO myTax portal<\/li>\n
- Go through a registered tax agent or tax preparer<\/li>\n<\/ul>\n
Fill out a paper tax return and mail it to the ATO<\/p>\n
Partnership tax returns<\/strong><\/h3>\nIf your business is a partnership, you\u2019ll need to lodge a partnership tax return. The partnership doesn\u2019t pay tax as an entity, instead they will lodge a \u2018partnership tax return\u2019 to deduce tax payable, and then the individuals who comprise that partnership lodge individual tax returns.<\/p>\n
To lodge your partnership tax return, you can choose from the following options:<\/p>\n
\n- By using SBR-enabled software<\/li>\n
- Through a registered tax agent or tax preparer<\/li>\n<\/ul>\n
Fill out a paper tax return and mail it to the ATO<\/p>\n
Company tax returns<\/strong><\/h3>\nIf you\u2019re registered as a company, you must submit a company tax return. This is distinct from an individual tax return, which you must also lodge to report any salary that you may have earned from the company or other sources.<\/p>\n
To lodge your company tax return, you can choose from the following options:<\/p>\n
\n- By using SBR-enabled software<\/li>\n
- Through a registered tax agent or tax preparer<\/li>\n<\/ul>\n
Fill out a paper tax return and mail it to the ATO<\/p>\n
Trust tax returns<\/strong><\/h3>\nIf you operate a trust, the trustee must submit a trust tax return. While trusts typically do not pay tax as an entity, you must still submit a tax return to detail the trust\u2019s net income, which is passed through to the trust beneficiaries. Each beneficiary of the trust will then have to prepare an individual tax return to report this income and pay tax on it.<\/p>\n
To lodge your trust tax return, you can choose from the following options:<\/p>\n
\n- By using SBR-enabled software<\/li>\n
- Through a registered tax agent<\/li>\n
- Fill out a paper tax return and mail it to the ATO<\/li>\n<\/ul>\n
<\/p>\n
When is the due date to lodge a tax return?<\/strong><\/h3>\nThis, once again, depends on your business structure.<\/p>\n
\n- For individuals, partnerships, and trusts<\/strong>: if you do your own tax return, the lodgment due date is 31 October. However, if you use a tax agent, timings will be a lot more flexible, (so long as you\u2019ve registered with a tax agent as of 31 October).<\/li>\n
- For companies<\/strong>: your lodgment date will vary, and you should be notified directly. Most company tax returns will commonly be due by 28 February, however, you should check with the ATO<\/a> to determine your exact lodgement dates.<\/li>\n<\/ul>\n
<\/p>\n
How to use accounting software to help with your tax preparation?<\/strong><\/h2>\nGood quality accounting software<\/a> is becoming indispensable in the preparation of income tax returns for businesses.<\/p>\nAccounting software can easily help you create income statements and expense records, which are required for tax filing, while SBR-enabled software can be directly used to file tax returns. It is thus highly recommended that you use accounting software<\/a> to help prepare data<\/a> and reports for your tax lodgment.<\/p>\nAccounting software is also useful for storing records, such as receipts, that are required to be held as proof of business expenses.<\/p>\n
How to prepare taxes for small businesses<\/strong><\/h2>\nThe preparation of your tax return will depend on what type of business you operate<\/a>. Generally, you can either do your own taxes or rely on a registered tax agent to lodge on your behalf. In this article, we\u2019ll outline different business types and how to prepare your tax return for each.<\/p>\nWhat to include in the tax return<\/strong><\/h3>\nThe information you\u2019ll need to include on your tax return will depend on your business structure, and will also become immediately clear once you undertake the process or talk to an accountant or tax advisor<\/a>. However, as a business owner, you\u2019ll most certainly need to keep records of your income and expenses.<\/p>\nOther reporting requirements (such as PAYG and GST<\/a>) will be covered by your BAS statements<\/a>, not your tax return.<\/p>\nHow to lodge your tax return<\/strong><\/h2>\nTax returns can be lodged in a few ways. How you choose to lodge is also based on your business type or structure.<\/p>\n
In terms of lodgment procedures, there are also several options. The procedure you choose will depend on your circumstances, personal preferences and business structure.<\/p>\n
<\/p>\n
Sole trader tax returns<\/strong><\/h3>\nSole traders lodge the same income tax return as individuals. Sole traders, will need to fill out an additional supplement called \u2018business and professional items schedule for individuals\u2019, but only need to file one tax return<\/a>.<\/p>\nTo lodge your tax return, you can:<\/p>\n
\n- Complete it online via the ATO myTax portal<\/li>\n
- Go through a registered tax agent or tax preparer<\/li>\n<\/ul>\n
Fill out a paper tax return and mail it to the ATO<\/p>\n
Partnership tax returns<\/strong><\/h3>\nIf your business is a partnership, you\u2019ll need to lodge a partnership tax return. The partnership doesn\u2019t pay tax as an entity, instead they will lodge a \u2018partnership tax return\u2019 to deduce tax payable, and then the individuals who comprise that partnership lodge individual tax returns.<\/p>\n
To lodge your partnership tax return, you can choose from the following options:<\/p>\n
\n- By using SBR-enabled software<\/li>\n
- Through a registered tax agent or tax preparer<\/li>\n<\/ul>\n
Fill out a paper tax return and mail it to the ATO<\/p>\n
Company tax returns<\/strong><\/h3>\nIf you\u2019re registered as a company, you must submit a company tax return. This is distinct from an individual tax return, which you must also lodge to report any salary that you may have earned from the company or other sources.<\/p>\n
To lodge your company tax return, you can choose from the following options:<\/p>\n
\n- By using SBR-enabled software<\/li>\n
- Through a registered tax agent or tax preparer<\/li>\n<\/ul>\n
Fill out a paper tax return and mail it to the ATO<\/p>\n
Trust tax returns<\/strong><\/h3>\nIf you operate a trust, the trustee must submit a trust tax return. While trusts typically do not pay tax as an entity, you must still submit a tax return to detail the trust\u2019s net income, which is passed through to the trust beneficiaries. Each beneficiary of the trust will then have to prepare an individual tax return to report this income and pay tax on it.<\/p>\n
To lodge your trust tax return, you can choose from the following options:<\/p>\n
\n- By using SBR-enabled software<\/li>\n
- Through a registered tax agent<\/li>\n
- Fill out a paper tax return and mail it to the ATO<\/li>\n<\/ul>\n
<\/p>\n
When is the due date to lodge a tax return?<\/strong><\/h3>\nThis, once again, depends on your business structure.<\/p>\n
\n- For individuals, partnerships, and trusts<\/strong>: if you do your own tax return, the lodgment due date is 31 October. However, if you use a tax agent, timings will be a lot more flexible, (so long as you\u2019ve registered with a tax agent as of 31 October).<\/li>\n
- For companies<\/strong>: your lodgment date will vary, and you should be notified directly. Most company tax returns will commonly be due by 28 February, however, you should check with the ATO<\/a> to determine your exact lodgement dates.<\/li>\n<\/ul>\n
<\/p>\n
How to use accounting software to help with your tax preparation?<\/strong><\/h2>\nGood quality accounting software<\/a> is becoming indispensable in the preparation of income tax returns for businesses.<\/p>\nAccounting software can easily help you create income statements and expense records, which are required for tax filing, while SBR-enabled software can be directly used to file tax returns. It is thus highly recommended that you use accounting software<\/a> to help prepare data<\/a> and reports for your tax lodgment.<\/p>\nAccounting software is also useful for storing records, such as receipts, that are required to be held as proof of business expenses.<\/p>\n
What to include in the tax return<\/strong><\/h3>\nThe information you\u2019ll need to include on your tax return will depend on your business structure, and will also become immediately clear once you undertake the process or talk to an accountant or tax advisor<\/a>. However, as a business owner, you\u2019ll most certainly need to keep records of your income and expenses.<\/p>\nOther reporting requirements (such as PAYG and GST<\/a>) will be covered by your BAS statements<\/a>, not your tax return.<\/p>\nHow to lodge your tax return<\/strong><\/h2>\nTax returns can be lodged in a few ways. How you choose to lodge is also based on your business type or structure.<\/p>\n
In terms of lodgment procedures, there are also several options. The procedure you choose will depend on your circumstances, personal preferences and business structure.<\/p>\n
<\/p>\n
Sole trader tax returns<\/strong><\/h3>\nSole traders lodge the same income tax return as individuals. Sole traders, will need to fill out an additional supplement called \u2018business and professional items schedule for individuals\u2019, but only need to file one tax return<\/a>.<\/p>\nTo lodge your tax return, you can:<\/p>\n
\n- Complete it online via the ATO myTax portal<\/li>\n
- Go through a registered tax agent or tax preparer<\/li>\n<\/ul>\n
Fill out a paper tax return and mail it to the ATO<\/p>\n
Partnership tax returns<\/strong><\/h3>\nIf your business is a partnership, you\u2019ll need to lodge a partnership tax return. The partnership doesn\u2019t pay tax as an entity, instead they will lodge a \u2018partnership tax return\u2019 to deduce tax payable, and then the individuals who comprise that partnership lodge individual tax returns.<\/p>\n
To lodge your partnership tax return, you can choose from the following options:<\/p>\n
\n- By using SBR-enabled software<\/li>\n
- Through a registered tax agent or tax preparer<\/li>\n<\/ul>\n
Fill out a paper tax return and mail it to the ATO<\/p>\n
Company tax returns<\/strong><\/h3>\nIf you\u2019re registered as a company, you must submit a company tax return. This is distinct from an individual tax return, which you must also lodge to report any salary that you may have earned from the company or other sources.<\/p>\n
To lodge your company tax return, you can choose from the following options:<\/p>\n
\n- By using SBR-enabled software<\/li>\n
- Through a registered tax agent or tax preparer<\/li>\n<\/ul>\n
Fill out a paper tax return and mail it to the ATO<\/p>\n
Trust tax returns<\/strong><\/h3>\nIf you operate a trust, the trustee must submit a trust tax return. While trusts typically do not pay tax as an entity, you must still submit a tax return to detail the trust\u2019s net income, which is passed through to the trust beneficiaries. Each beneficiary of the trust will then have to prepare an individual tax return to report this income and pay tax on it.<\/p>\n
To lodge your trust tax return, you can choose from the following options:<\/p>\n
\n- By using SBR-enabled software<\/li>\n
- Through a registered tax agent<\/li>\n
- Fill out a paper tax return and mail it to the ATO<\/li>\n<\/ul>\n
<\/p>\n
When is the due date to lodge a tax return?<\/strong><\/h3>\nThis, once again, depends on your business structure.<\/p>\n
\n- For individuals, partnerships, and trusts<\/strong>: if you do your own tax return, the lodgment due date is 31 October. However, if you use a tax agent, timings will be a lot more flexible, (so long as you\u2019ve registered with a tax agent as of 31 October).<\/li>\n
- For companies<\/strong>: your lodgment date will vary, and you should be notified directly. Most company tax returns will commonly be due by 28 February, however, you should check with the ATO<\/a> to determine your exact lodgement dates.<\/li>\n<\/ul>\n
<\/p>\n
How to use accounting software to help with your tax preparation?<\/strong><\/h2>\nGood quality accounting software<\/a> is becoming indispensable in the preparation of income tax returns for businesses.<\/p>\nAccounting software can easily help you create income statements and expense records, which are required for tax filing, while SBR-enabled software can be directly used to file tax returns. It is thus highly recommended that you use accounting software<\/a> to help prepare data<\/a> and reports for your tax lodgment.<\/p>\nAccounting software is also useful for storing records, such as receipts, that are required to be held as proof of business expenses.<\/p>\n
Other reporting requirements (such as PAYG and GST<\/a>) will be covered by your BAS statements<\/a>, not your tax return.<\/p>\n Tax returns can be lodged in a few ways. How you choose to lodge is also based on your business type or structure.<\/p>\n In terms of lodgment procedures, there are also several options. The procedure you choose will depend on your circumstances, personal preferences and business structure.<\/p>\n Sole traders lodge the same income tax return as individuals. Sole traders, will need to fill out an additional supplement called \u2018business and professional items schedule for individuals\u2019, but only need to file one tax return<\/a>.<\/p>\n To lodge your tax return, you can:<\/p>\n Fill out a paper tax return and mail it to the ATO<\/p>\n If your business is a partnership, you\u2019ll need to lodge a partnership tax return. The partnership doesn\u2019t pay tax as an entity, instead they will lodge a \u2018partnership tax return\u2019 to deduce tax payable, and then the individuals who comprise that partnership lodge individual tax returns.<\/p>\n To lodge your partnership tax return, you can choose from the following options:<\/p>\n Fill out a paper tax return and mail it to the ATO<\/p>\n If you\u2019re registered as a company, you must submit a company tax return. This is distinct from an individual tax return, which you must also lodge to report any salary that you may have earned from the company or other sources.<\/p>\n To lodge your company tax return, you can choose from the following options:<\/p>\n Fill out a paper tax return and mail it to the ATO<\/p>\n If you operate a trust, the trustee must submit a trust tax return. While trusts typically do not pay tax as an entity, you must still submit a tax return to detail the trust\u2019s net income, which is passed through to the trust beneficiaries. Each beneficiary of the trust will then have to prepare an individual tax return to report this income and pay tax on it.<\/p>\n To lodge your trust tax return, you can choose from the following options:<\/p>\n <\/p>\n This, once again, depends on your business structure.<\/p>\n <\/p>\n Good quality accounting software<\/a> is becoming indispensable in the preparation of income tax returns for businesses.<\/p>\n Accounting software can easily help you create income statements and expense records, which are required for tax filing, while SBR-enabled software can be directly used to file tax returns. It is thus highly recommended that you use accounting software<\/a> to help prepare data<\/a> and reports for your tax lodgment.<\/p>\n Accounting software is also useful for storing records, such as receipts, that are required to be held as proof of business expenses.<\/p>\nHow to lodge your tax return<\/strong><\/h2>\n
<\/p>\nSole trader tax returns<\/strong><\/h3>\n
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Partnership tax returns<\/strong><\/h3>\n
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Company tax returns<\/strong><\/h3>\n
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Trust tax returns<\/strong><\/h3>\n
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When is the due date to lodge a tax return?<\/strong><\/h3>\n
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How to use accounting software to help with your tax preparation?<\/strong><\/h2>\n