As a business owner, you are likely to incur expenses that are paid for privately, such as office supplies or equipment, travel expenses, or even meals and entertainment. It is important to claim these expenses and bring them into your business, as it can provide a number of benefits:
Claiming these expenses can reduce your taxable income, which can ultimately lower your tax bill. This is because business expenses are generally tax deductible, meaning they can be subtracted from your revenue to calculate your taxable income. By claiming these expenses, you are reducing the amount of income that is subject to tax.
Claiming expenses that have been paid for privately can help to improve your financial record keeping. This is especially important for small businesses, as it can be easy for expenses to get lost or forgotten when they are not recorded properly. By bringing all your expenses into your business accounts, you can ensure that your financial records are accurate and up-to-date.
Claiming expenses can also help to improve your cash flow management. This is because you may be able to claim back GST on certain expenses, which can help to reduce your overall expenses and improve your cash flow. Additionally, by keeping track of all your expenses, you can identify areas where you may be overspending and make adjustments to improve your cash flow.
At Accountech, we understand the importance of effective expense management and record keeping for small businesses. Our team of experienced accountants can provide advice and guidance on how to claim expenses and improve your financial record keeping. We also offer a template cashbook file that is available on request, which can help you to keep track of all your business transactions.