Hey, it’s a fresh week and a new month!

You’re probably getting ready to plan out your budget for this new month, or maybe you’re like me and checking out what you spent last month.

Today, let’s talk about something that may not sound very exciting but impacts every business: expenses.

Inevitably, expenses come with tax implications, hence it’s crucial to determine the exact amount spent and, more significantly, the corresponding tax remittance to the government.

As a business owner, taxes are something you can’t avoid, but they don’t have to be a headache either. Understanding and tracking your tax liabilities can help you save money and make smarter financial decisions for your business.

Did you know that there are many allowable expenses / tax deductions available for business owners?

These deductions can help you save money on capital expenses such as office space, and equipment. Even if you work from home, you are able to claim a portion of your rent and telephone/broadband as expenses.

It’s important to keep track of all your business expenses so that you can take advantage of these deductions come tax time.

How you’ve registered your business will also affect your tax liability

If you’re a sole trader, you may be able to deduct more expenses, but you’ll also be personally liable for any debts or legal issues.

On the other hand, if you form a limited company (LTD), you’ll have more protection from personal liability, but you may have to pay more in taxes.

Recently, a friend advised me to put my children on payroll as soon as they are old enough to work for me, and pay them a salary rather than pay them pocket money.

This allows me to pay them out of pre-tax income.

So, dear sis, here are some strategies on how to manage your expenses to aid your tax filing processes.

1. Keep accurate records

It’s essential to keep track of all your expenses throughout the year to ensure that you have all the information you need to file your accounts accurately.

Keep a record of all receipts, invoices, and other relevant documents that pertain to your business expenses.

2. Categorise your expenses

Categorising your expenses can help you identify which expenses are tax-deductible and which are not.

Create categories such as travel expenses, office expenses, and entertainment expenses to make it easier to organise your expenses when it’s time to file.

3. Use accounting software

Using accounting software can help you track your expenses more efficiently.

Many accounting software programs allow you to connect your bank accounts and credit cards, making it easier to reconcile your expenses and track your spending throughout the year.

I recommend using Emma, an app which allows you to collate expenses from multiple bank accounts.

4. Plan your expenses strategically

Consider timing your expenses to maximise your tax deductions. For example, if you’re planning to purchase new equipment, consider buying it towards the end of the tax year to get the most tax benefits.

5. Consult with a tax professional

A tax professional can help you understand the tax laws and regulations that apply to your business and provide advice on how to maximise your tax deductions.

In conclusion, managing expenses is a crucial aspect of running a successful business (and keeping more of your money!).

With the right knowledge, preparation and tracking, taxes shouldn’t be a headache for you. Implementing simple strategies can streamline the process and ultimately save you money.

Have a wonderful holiday! It’s Workers Day today!

Get some rest, you’ve more than earned it!