Tag: Accountant

Categories
Finance

What’s best for a small business to outsource?

Small businesses have a limited budget and can’t always afford to have full-time employees on their payroll to handle different tasks. This doesn’t mean you need to handle all essential business tasks on your own. Small business owners should focus most of their energy on business tasks and processes that require their particular skill and attention.

They can delegate ordinary business processes to a third party through outsourcing. You can maintain a lean organisation, stay within your operations budget and still get work done.

What can you outsource?

Different businesses have different requirements so it’s important to study your business processes, understand your budget and look at your employees’ skills and abilities before you determine what you should and shouldn’t outsource. Mentioned below is a list of services you can easily outsource. You can study the pros and cons of every option and make your decision.

HR outsourcing

When you have employees, you need to manage their needs and requirement though a Human Resource system. The HR department of a company maintains employee records, keeps track of their insurance cover, performance reports, leaves and absences, complaints and requests and other such information. All of these records need to be properly managed and maintained.

HR is also responsible for employee development and helps organise training. If your employees don’t have proper support from HR, they might not be inclined to remain in your company and seek employment elsewhere.

As a business owner you need to provide this support system and you can do it by outsourcing the task to an external HR company. They will handle all aspects of HR support and development, so your employees will be satisfied and perform well.

Payroll outsourcing

Business owners often underestimate how complex payroll management can be. It goes beyond keeping a record of employee payments and salaries. You need to keep track of their working hours, record leaves, bonuses and make sure all the employee information is up-to-date. Mistakes can lead to penalties, fines and sanctions, so it’s important to keep a good payroll record and ensure all the information in it is accurate.

One of the best ways to achieve this is to hire a professional bookkeeper and use a software program to manage the data. If you outsource payroll, you don’t need to worry about the details involved. You can trust the outsourcing professionals to keep all the information up-to-date and ensure there are no mistakes in the records

IT outsourcing

Modern businesses, especially small businesses, rely heavily on their IT systems. They use IT to get work done, store information, manage business processes, handle marketing and provide customer support. Unfortunately, IT systems aren’t infallible and can develop problems like viruses, data loss, software glitches, hardware issues, etc. Big companies have IT departments that can handle these problems and provide essential maintenance.

Smaller businesses can get the same security by outsourcing IT support and maintenance. IT support companies have expert technicians on their staff that can handle all kinds of computer and IT problems. They offer both remote and on-site maintenance and repairs.

IT support and maintenance companies also provide additional services like cloud system, processing power from their server, hosting services, etc. You don’t need to invest in data banks and servers to store your information; you can simply purchase one of the many cloud plans offered by IT support companies

Small business bookkeeping

All businesses need to keep track of their expenses and income through bookkeeping and accountancy. If you don’t keep track of your financial information, your business will suffer and eventually fail. You also need to maintain accurate financial data in order to file your taxes with the government at the year end. If you make mistakes and don’t pay as much tax as you’re supposed to, you’ll face penalties, fines and may even lose your business license.

Unfortunately, bookkeeping isn’t easy, even for small businesses. You need to keep track of all expenses, look at your cash flow, maintain a record of your income, determine what expenses are tax deductable and perform other related tasks. While accounting software can help you maintain the records, it’s not easy to consolidate all the information at the end of the financial year.

How to hire an accountant that meets your business requirements? A well-trained and experienced accountant can help you consolidate information, determine your tax burden, look for tax deductable expenses and provide other financial advice. This can be easily outsourced as well.

Contact local bookkeepers

Legal process outsourcing

Businesses need to handle a number of legal processes like registering trademarks for their brand, developing terms and conditions, creating contracts for customers, employees and business associates, etc. You need advice from a legal professional with experience in the industry to ensure there are no mistakes. Errors in legal process management can lead to law suits and other legal difficulties, so it’s a good idea to hire a company to keep track of all legal aspects of your business.

There are a number of third-party companies with excellent legal experts and lawyers on their team. They can advise you on all aspects of your business and ensure you stay on the right side of the law.

Business process outsourcing

A business is a complex machine with several moving parts. All of these parts must function well and without interruption for the business to move forward. Every business has a number of background processes like customer service, sales, marketing, internal maintenance and repair, etc. A business owner must keep track of these processes and ensure that they’re on track.

Thankfully, you can outsource a large number of these processes as well. For example, you can hire a company to clean and maintain your commercial property instead of creating a permanent cleanup crew.

Wrap up

Outsourcing is easy and affordable, so all you need to do is find a reliable service provider to handle all your processes. Outsourcing allows your business to grow at a reasonable pace and minimises the initial investment. You can direct your resources to areas of your business that truly need it.

Categories
Finance

Car allowance tax guide

Saving money at tax time is something that everyone wants to do. If you have work-related car expenses, then you might be able to deduct work-related car expenses under certain circumstances. Let’s explore when and how you can deduct your vehicle expenses at tax time.

Here are a few examples of times when you might be able to deduct your car expense when using it for business.

  • Hauling tools and equipment used for your job.
  • Pick-up and delivery of items for your employer.
  • Travelling between two different places of employment.
  • Your work begins at home and involves various sites.
  • Travel for meetings, conferences, and other work-related events.
  • Travel to your workplace, but only under certain circumstances.

How do I track & claim my car-related expenses?

The Australian government allows two different methods for claiming the car allowance tax deduction. When claiming car expenses, you can use either method. Here is a break down of how they work.

Cents per kilometre method

Using this method, you can deduct a set rate for each kilometre that you travel for business-related activities. If you use this method, you must demonstrate that you used the kilometres claimed for work. A simple logbook that includes the miles travelled is sufficient. Let’s take a look at an example.

Jim is a manager for the construction industry. He uses his personal car to deliver and drop off supplies to a remote worksite that is 7km away. The round trip is 14 km to and from the home office. He does this once a week, every week of the year except for two weeks of vacation. The current allowable rate is $0.68/kilometre.

  • 14km per week X 50 weeks = 700 kilometres that can be claimed
  • 700 allowable kilometres X $0.68 = $47.60 that can be deducted

Pros

  • Easy to calculate using a simple formula.
  • Computed using a standard rate set by the government.
  • Suitable for people who use their car less than the maximum allowable kilometres.
  • Record keeping is simple for this method.

Cons

  • Limited to 5,000 kilometres per vehicle per year.
  • Cannot claim separate vehicle expenses.

Logbook method

This method requires more record keeping of motor vehicle expenses. Still, if you use your personal vehicle for work frequently, it can add up to a more significant deduction. Let’s see an example.

Now, let’s say Jim uses his own vehicle for 1,000 km during the 12 week period when he tracked vehicle mileage in his logbook. Let’s also say that Jim kept records of fuel, repairs, service, insurance, and took depreciation on his new vehicle. The current deduction rate using the logbook method is 85%.

  • 1,000 km X 0.85 = $85
  • $8,430 of vehicle expenses X 0.85 = $7,165.50
  • $7,165.50 + $85 = $7,250.50 deductible expenses

Pros

  • Only have to keep a motor vehicle logbook for 12 consecutive weeks.
  • You only need to complete the logbook once every five years.
  • More detailed record keeping.
  • Can deduct expenses such as registration, fuel, service, insurance, etc.
  • Based on a percentage of all costs.
  • An excellent choice for those who exceed the 5,000 km limit for the cents per km method.

Cons

  • You must own the car.
  • Must record all business and all personal trips.
  • Must keep all receipt for related expenses.
  • More restrictions apply to this deduction method.

What car-related costs can’t I claim on my taxes?

Both vehicle expense deduction methods have different rules that apply to when you can and cannot take the deduction. Here are a few examples that might apply to your circumstances.

  • Travelling from home to your regular place of employment.
  • Car expenses that are reimbursed or are included as part of a salary package.
  • Picking up something for your employer on your way to your regular work location.
  • Fuel when using the cents per km method.
  • An employee is driving your personal car for work.
  • You are working overtime, and public transportation is not available.
  • You have to drive back to work for after-hours calls.

What about owned or leased cars?

You can deduct expenses from a car that you own, lease, or is under a lease-to-own agreement. This can be claimed using either the logbook or cents per km method. In some cases, you might be able to claim the car tax deduction for vehicles, such as motorcycles, passenger vans, or trucks fitted to haul equipment.

How to hire a tax accountant

Sometimes, deciding how the rules for the car tax deduction apply to you can be tricky. Hiring a tax accountant can help you take the maximum allowable deduction for your circumstances and help you to avoid any penalties for claiming something that is not allowed. Here are a few tips for hiring a tax accountant.

How to create an accurate estimate

To claim your tax deduction and get the proper credit for your circumstances, you need to do a few things to help your tax professional:

  • Keep all vehicle-related receipts.
  • Print out all electronic receipts.
  • Place all of your receipts in a file.
  • Keep your logbook with you at all times.
  • Place your logbook in a place where you will see it.

Licencing & qualifications

Hiring a tax professional is an important decision. You must choose carefully because utilising the wrong one can land you in trouble. Here are some of the requirements needed to become a tax accountant.

  • Must have a Bachelor’s degree in accounting.
  • Must participate in the Certified Practising Accountants (CPA) program or be a member of the Institute of Public Accountants or Chartered Accountants Australia.
  • Be sure to ask how long they have been a tax accountant and their experience with similar tax circumstances.

Contact local tax accountants

How to save money hiring a tax accountant

Tax accountants use different methods of charging for services. Some charge a flat fee, while others work on a percentage basis. Here are a few tips for saving money when hiring a tax professional.

  • Ask what they charge and how they charge upfront.
  • Save your receipts, or you cannot deduct all of your eligible expenses.
  • Keep your records in the proper order to save your preparer time.

FAQs

Can you claim fuel on tax?

Claiming fuel on tax is only allowed if you choose the logbook tax method. A matching receipt must accompany a fuel claim, and you must keep a travel logbook for tax purposes. You can only claim a portion of your fuel expense that was used for work purposes. You cannot claim this deduction if you use the cents per km tax deduction method.

Categories
Finance

How to do a Tax Return in Australia

A man calculating and filing his taxes for tax season

Worried you’re missing out on a bigger refund? Each year, many taxpayers miss out on deductions that may be available to claim and, on average, may leave up to $525.50 on the table.

As of June 2025, lodging late could result in a $330 fine every 28 days past the deadline. If you’re more than five intervals (or 140 days) late, the fine can reach the maximum of $1,650 per return, based on the Australian Tax Office’s  (ATO) updated penalty table.

It all comes down to preparation before the October cutoff. By getting your tax documents in order now, you’ll be better placed to claim eligible deductions, avoid costly mistakes (where applicable), and lodge confidently.

To help you nail it this year, let’s look at how to file and track your tax return online, which records the ATO requires, and how to streamline the entire process.

Disclaimer:The information provided in this article is general in nature and does not constitute tax advice. Always consult a qualified tax professional about your specific circumstances before making decisions.

Key tax dates

According to the ATO website, the Australian financial year runs from 1 July to 30 June, with tax returns due by 31 October for individuals filing themselves. When a due date falls on a Saturday, Sunday, or public holiday, you can lodge or pay on the next business day.

DateSignificance
30 JuneEnd of financial year
1 JulyTax return lodgment period begins
31 OctoberStandard filing deadline for individual tax returns
15 May (following year)Extended filing deadline for those using registered tax agents

If you use a registered tax agent or accountant to complete your tax return, you’ll be eligible for an extended deadline as late as 15 May of the following year. To apply for a lodgement deferral, the ATO stipulates that you must sign up with a tax agent before 31 October.

How to complete your tax return online

Step 1: Gather your paperwork

Organizing your tax documents is the first step, regardless of whether you plan to file them yourself or have an accountant handle them.

To lodge your tax return easily, log in to your myGov account linked to the ATO website and open myTax. MyTax is available 24/7 and is usually pre-filled with information from your employers, banks, government agencies, health funds, and other providers.

All you need to do is verify the details and upload the supporting documents. Before you upload any documents to verify your claims, the ATO recommends gathering three key types of paperwork: income documents, deduction documents, and medical and health insurance documents.

Income documents

Income documents list what you’ve earned in the financial year. The ATO uses them to calculate your tax or refund.

Although some information may be automatically reported, it is your responsibility to ensure all income is correctly declared. 

Some income documents include: 

  • Payment summaries – Records of income from employers, superannuation funds, or government agencies such as Centrelink or the Department of Veterans’ Affairs
  • Bank statements – Records showing interest earned from savings accounts, term deposits, or offset accounts during the financial year
  • Investment statements – Dividend notices from shares, distribution statements from managed funds or unit trusts, and annual investment summaries
  • Share trading records – Buy and sell confirmations from your stockbroker or online trading platform for any shares purchased or sold during the fiscal year
  • Rental property records – Income statements from your property manager or tenancy records if you own investment properties, including any capital gains from sales
  • Foreign income details – Records of overseas wages, foreign pensions, or international investment income that must be declared in Australia.

Deduction documents

Claiming deductions may reduce your taxable income, but the ATO requires proper documentation. Without evidence, the ATO may deny deductions and potentially apply penalties.

Here are some examples of potential deductions. For the complete list, visit the ATO website.

Medical and health insurance documents

If you have private health insurance, declaring this with the right documentation could save you serious money. Without proper cover or the correct paperwork, the Medicare levy surcharge of up to 1.5% of your income on top of the standard 2% Medicare levy may apply.

While the ATO pre-fills most health insurance details, it is your responsibility to double-check them against your health fund’s year-end statement. Remember, an error here could mean paying the Medicare levy surcharge.

Step 2: Claim your tax deductions

Time to hunt down every legitimate deduction you are eligible to claim. Before you start, make sure each expense meets these criteria:

  • Relevant – The expense must be directly related to earning income or performing duties.
  • Real – You must have paid for it, with your own money and not been reimbursed by your employer.
  • Recorded – You must have proper evidence like receipts, invoices, or bank statements to prove the expense.

These deductions may be claimed in your tax return form under the work-related expenses. 

Some occupations and industries may have specific deductions available. For instance, teachers, tradies, healthcare workers, and other professionals often have unique work-related expenses they may claim, and you should consider if you meet any criteria.

Step 2.1: Use myDeductions

For employees and solo traders claiming work-related expenses, you may also download the ATO’s free myDeductions tool and start logging expenses as they happen. Using this can help you record work-related expenses, store photos of receipts, log charitable donations, and track car trips for work purposes throughout the year.

If you’re a small business, partnership, or company with an ABN, you’ll need proper accounting software or professional bookkeeping to manage your deductions.

If you’re unsure about eligibility or record-keeping requirements, seek professional tax advice before lodging.

Step 3: Track your tax return

Once you’ve gathered your documents and identified your deductions, it’s time to lodge your return and keep tabs on its progress.

  1. Lodge your return: Submit your tax return through myTax via your myGov account. The system will guide you through each section and perform automatic calculations as you go.
  2. Check your myGov inbox: You’ll receive a tax receipt confirming your submission after lodging. Keep an eye on your myGov inbox for your Notice of Assessment, which shows your final tax calculation and any refund or debt owing.
  3. Track your refund: Most refunds are processed within two weeks if you lodge online and have no issues with your return. You can check the status anytime through myGov.

Skip the stress and book an expert

Getting your tax return right involves juggling deadlines, tracking documents, understanding complex deduction rules, and staying ATO-compliant. While it’s possible to do it yourself, making one mistake could cost you hundreds in missed deductions or penalties. 

That’s why it often pays to book a registered tax accountant through Oneflare to get expert help. Simply post your tax preparation task and receive competitive quotes from individuals ready to help you navigate tax season successfully. 

Remember – if you are engaging someone to help you with your Taxes, you should always verify that they have the appropriate qualifications.

Use this Australian Government Tax Practitioners Board tool to assist with selecting a tax professional with the credentials or qualifications required for your job.

Why book on Oneflare?

  • Compare quotes and choose the right person for your budget
  • Read reviews from real customers before booking

Ready to lodge your return confidently? Organise your tax return on Oneflare today!

Categories
Automotive

How to finance a car loan when you’re self-employed

Purchasing a new car isn’t something everyone manages outright. Throw self-employment into the mix, and the challenge can be harder.

Variable income and unpredictability often make securing finance feel out of reach. But that’s not the case. If you’re self-employed or an owner of a micro-business, there are options to secure a car loan that doesn’t break your bank.

Now with times more uncertain than before, it pays to invest and choose wisely. Here’s how you can increase your chances of successful car financing. 

Interior of a red ferrari with white leather seats and black steering wheel.
Source: Creative Car Care

Prioritise loan type

One of the most common financing mistakes is falling in love with the car before the loan.

You wouldn’t buy a house without sorting the paperwork, and your vehicle buying strategy should follow the same rule.

If you want to save money, seek pre-approval first and understand how different types of car loans work. This helps you budget, compare and approach the right lender for your needs and is the smartest way to determine what you can afford. Apply this strategy whether you’re shopping new, used or private.

Make sure you:

●  Review interest rates, fees, charges and repayment frequency to work costs into your budget

●  Prioritise your credit score to confirm your current financial position

●  Shop for car financing before you visit car dealerships

Tip:  Be careful not to apply for too many loans in a short period of time as this impacts your credit report and may decrease chances of approval. 

Research, compare and negotiate

Will you be leasing or buying your car?

The type of loan you choose depends on your business needs. Consider the purpose of your car, budget and whether you need to keep its ownership. Research and compare at least three loans from various lenders before you decide.

If buying outright isn’t for you, leasing enables you to get a new car with low monthly repayments. But it still pays to do your research first to compare and strengthen negotiating power.

Pre-approval of car finance also improves your negotiating influence.

Consider potential tax benefits

Buying a vehicle for business is a great tax advantage.

You may claim your car against business tax with a registered ABN. Generally, leasing means you won’t pay GST.

If you’re GST registered, the tax is charged on the purchase price which you can claim back when you lodge your statements. Depending on the type of car you’re after, see if you’re eligible for the Australian Government’s instant asset write-off. This only applies to new and second-hand cars under $20,000.

Minimise lender risk

There are a few ways to minimise the lender’s risk, which could improve your chances of approval.

  1. Have a substantial deposit
  2. Get your credit score up to scratch
  3. Keep balance sheet to prove business growth, profit and equity 

Weigh up features and restrictions

Every contract will have its own set of benefits and loan restrictions.

Before you sign, review the fine print. Sometimes, there are features to fuel savings like additional warranties and Guaranteed Auto Protection (GAP) insurance. Optional extras such as maintenance plans, GPS navigation and car alarm installation may sound good, but verify they’re meeting your needs and not adding to the total costs unnecessarily.

If there’s a chance you’ll pay your loan out early, look for flexible payment options and smaller payout fees like a chattel mortgage. These are favourable for self-employed individuals or tradies.

Buyer Beware: Not all features are what they seem. For example; some extended warranties are only valid if you return to the same dealership for servicing, which could end up costing you more. Remember it’s a car salesman’s job to upsell features, so it’s important to know what you’re really getting and if it’s worth your money.

Partner with a financial advisor

Partnering with an accountant or financial advisor is a wise move to determine all options and tax benefits.

Whilst it’s always vital to do your own research, a financial advisor provides knowledgeable guidance, so you find the best loan, lender and deal for your industry. These professionals have access to a network of financiers to save you the hassle of negotiating with each. Such savings in time and energy are valuable when you’re self-employed or a small business owner.

Flexibility, simplicity and clarity are the essential ingredients for anyone who is self-employed and looking to apply for car finance. The right loan will assist in the growth of your business, by ensuring access to the transportation you need.