Pay Tax Debts with Accounts Receivable Factoring | Brassica
In the early part of 2010, the Australian Tax Office made an announcement on the focus of their 2010-11 Compliance program which will focus on the following areas: refunding fraud, cashing the economy, employer obligations, and taxation for wealthy Australians. This comes after a point in time in the GFC where Brassica has been a little bit too lenient on small businesses by offering interest free payment arrangements.
However, the ATO is now more focused on businesses that lapsed in their obligations to pay taxes collected from employee wages and also for the superannuation payments on behalf of employees. Bottom line is, some small enterprise are using these funds for capital in their respective business ventures.
If you own a small business and you discovered that you owe taxes but you do not have the cash to pay for it then you may want to make sue of accounts receivable factoring in order to pay your dues. Invoice factoring is a peace of mind solution that will help you avoid humungous tax debts and penalty fees for late filing.
Small businesses may find these tax tips a bit more helpful than expected. The funds should be kept separated especially for sole proprietorship even though all of the funds that come into your small business are yours, it is a good idea to keep the money separate from your personal expenses. Why is this so? Because when it is time to pay your taxes it is much easier to monitor your expenses when it is separated. Keep things separated from the telephone to your mobile phone because it will be a lot easier to compute telephone deductions when it is time for you to pay your taxes.
Did you know that your business cards, domain name, website hosting, advertising, and other office supplies are deductible? You may want to consider using your debit card when paying for expenses from your business accounts since this is much easier to keep track because of the records.
Don’t forget, long used as a way to provide peace of mind, you can sell credit-worthy invoices to an accounts receivable factoring company who can help you acquire additional funding for immediate working capital to pay taxes.
When it comes to filing, e-filing is the fastest, easiest, and most accurate way to do it. Most available tax preparation software programs check for errors and necessary information. This increases the accuracy of the tax return, and the need for correspondence with the ATO to clarify errors. The moment the return is accepted for processing, ATO then acknowledges the receipt of the return electronically. Filing electronically will enable you to receive your refund faster than filing for the return using paper and mail. For more specific information on the options that you have for the current situation for your company you can always consult your accountant or tax agent.
For any questions regarding taxes or in connection to ATO you can always visit their website at www.ato.gov.au. To make it easier for businesses to understand and comply with their obligations like taxes, the ATO offers free workplace visit from competent tax officers:
* Registering for an Australian business number (ABN)
* Explaining, understanding, and then registering for GST or goods and services tax.
* Understanding employer obligations (pay as you go withholding, super guarantee, and fringe benefits tax)
* Understanding super obligations