Preparing for Tax Time: Expert Tips from Acumon Director, Christian Tapp
As the end of the financial year approaches, small business owners across the Hunter Valley are turning their attention to tax time. We sat down with Christian Tapp, Director and Senior Client Manager at Acumon, to discuss how small businesses can best prepare and maximise their tax-time outcomes.
Q: Christian, thanks for joining us. When should small businesses start preparing for tax time?
Ideally, tax planning should be a year-round activity, but realistically, we recommend starting to get organised at least a few months before 30 June. By May, you should be reviewing your financials, reconciling accounts, and speaking with your accountant about any strategies you can implement before the year closes.
Q: What are some of the most common mistakes small business owners make at tax time?
A big one is leaving everything to the last minute. That often leads to missed deductions and poor record-keeping. Another mistake is not separating personal and business finances—this can complicate everything from GST reporting to identifying legitimate business expenses. And finally, failing to keep good records—receipts, invoices, logbooks—can result in reduced deductions or ATO scrutiny.
Q: What records should business owners have ready when they meet with their accountant?
Great question. At a minimum, they should have:
- Bank and credit card statements
- BAS and PAYG summaries
- Payroll reports and superannuation contributions
- A list of accounts receivable and payable
- Details of asset purchases or sales
- Vehicle logbooks, if claiming motor vehicle expenses
- Any loan statements for business debts
- Stocktake records, if applicable
Good bookkeeping software like Xero helps a lot, but you still need to ensure the data is accurate and reconciled.
Q: Are there any tax-saving strategies small businesses should consider before 30 June?
Absolutely. There are several options depending on your business structure and profitability. Some key ones include:
Instant Asset Write-Off: Depending on eligibility, you may be able to immediately deduct the cost of business assets.
Prepaying Expenses: You can prepay certain expenses, such as rent, insurance, or subscriptions, to bring forward deductions.
Super Contributions: Paying employee superannuation before 30 June can give you a tax deduction in the current financial year.
Bad Debts: Review your accounts receivable and write off any bad debts that are unlikely to be recovered.
It’s best to get personalised advice because the right strategy varies by business.
Q: How can small businesses avoid ATO audits or penalties?
The ATO has increased data matching and uses analytics to flag irregularities. To stay off their radar, make sure your lodgements are on time, your records are thorough, and your claims are reasonable. Always declare all income, and be honest about deductions. If something looks questionable, the ATO will likely follow up.
Q: What’s a kew piece of advice for businesses that had a tough year financially?
If your business experienced losses or cash flow issues, don’t panic. There may still be options, such as carrying forward tax losses to offset future profits. Also, the ATO offers payment plans if you can’t pay your tax bill in full. The key is to be proactive—don’t ignore it. Speak with your accountant early so you can plan accordingly.
Q: How can Acumon help small business owners during tax time?
At Acumon, we work closely with our clients to ensure they’re not just compliant, but also making informed financial decisions. We provide tailored tax planning, accurate financial reporting, and proactive business advice. We also have a financial planning arm for personal wealth generation. Whether it’s helping you understand your numbers, maximising deductions, or planning for the years ahead, we’re here to support you—not just at tax time, but all year round.
Q: Finally, what’s one thing every small business owner in the Hunter Valley should do today to get ready for tax time?
Book a chat with your accountant. Even a 30-minute conversation can uncover opportunities, avoid pitfalls, and save you stress later on. At Acumon, we’re proud to support the local Hunter Region business community and help them thrive—especially when tax time rolls around.
Need help getting tax-ready?
Contact the friendly team at Acumon today on (02) 4931 1100 at Greenhills or (02) 4955 9195 at Lambton—or visit www.acumon.com.au to book a consultation.