10 top tax tips for business owners to prepare for your 2022 tax return

10 top tax tips for business owners to prepare for your 2022 tax return

The end of the financial year is approaching and perhaps you are keen to get your tax lodged with the ATO as soon as possible. Perhaps you have a refund, and you are keen to receive it soon for your next project. Or you may have to pay some tax, but you would like to know how much you owe the ATO sooner rather than later. Here are 10 tips to be ready


1. Get your accounting file in order

If you are using accounting software (like Xero), make sure you are up to date with the reconciliation so that your accountant is not waiting for that to finalise your tax returns. If you have employees, make sure that you have completed the STP finalisation by the due date on the 14th July.


2. COVID related payment

Have you received any payments this year? These are unique payments from the ATO received during the financial year. Make sure you know how much of these you have been paid and compile it for your accountant.


3. Gather your trading bank statements for 30 June

If you have not been downloading your bank statements throughout the year, this is a good time to do so in preparation for your accountant. The bank statements are needed to confirm the balance as of 30 June so that your accountant can present the financial statements accurately.


4. Make a list of all the assets in your business

Did you purchase any equipment or vehicles throughout the year? Make a list of all the assets purchased and attach it with the associated invoices so that your accountant can apply the appropriate depreciation rules to them. If you are using Xero, the asset register function is a good tool to use to record these assets.


5. Have the business and vehicle loan documents ready

If you have used finance to purchase these assets, make sure you have the loan documents ready for the end of the year. Your accountant will need to calculate the interest paid on these loans and claim it in your tax return.


6. Don’t forget your personal tax return information

While completing your business tax return is important, clients often forget that they need to complete their personal tax returns too, even if your trading structure is not a sole trader. Have you been married or divorced? Do you have children? Do you have private hospital cover on your private health policies? This is important information you need to tell your accountant in order to complete your tax returns.


7. Do you have investment properties or shares?

If you own investment properties and they are managed by property managers, you will need a copy of the financial year statement for your accountant. Loan statements for the property are often forgotten too. If you have sold shares in the financial year, it is then important to find out the purchase cost and date of those shares so that the accountant can calculate any capital gains tax.


8. Did you invest/trade in Cryptocurrencies?

Cryptocurrencies are capital gains tax assets. Depending on trading volume any profit/loss will have specific tax implications. Connect your digital wallet to Koinly or Crypto TaxCalculator and prepare your annual tax statement.


9. Foreign Investments

If you are an Australian resident with overseas assets, you need to include any capital gains or losses you make on those assets in your tax return. You may also need to include income you receive from overseas interests in your tax return.

If you paid foreign tax on that income, you may be entitled to an Australian foreign income tax offset. The ATO currently has agreements with many foreign jurisdictions and therefore is likely to receive data on your overseas income and investments.


10. Personal Super Contributions

If you made any personal superannuation contributions, don’t forget to submit the notice of intent to claim form to your super fund as soon as possible.

The personal super contributions that you claim as a deduction will count towards your concessional contributions cap. When deciding whether to claim a deduction for super contributions, you should consider the super impacts that may arise from this.


Even if you have a tax bill to pay, it is always ideal to have your accountants prepare it earlier and delay lodgement until May next year. At least this way you know where you stand.

Contact us to get a checklist to prepare your 2022 tax returns.