How Do Tax Returns Work?

Tax season is just around the corner – and we know it’s not everyone’s favorite time of year. Filing tax returns is a confusing and time-consuming process. That’s why the team here at The Bookkeeping Studio wants to teach you how to tackle tax season one step at a time – and avoid rookie mistakes – so that you can take advantage of money-saving opportunities for your small business.

So what are the different ways to lodge tax returns in Australia? We have five suggestions: filing at the taxation office, partnering with a tax agent, doing paper tax returns, applying for a tax help program, and getting bookkeeping services. Whether you’re a first-time taxpayer, someone figuring out small business banking, or a seasoned veteran of the tax season, it’s important to refresh your memory on which tax options are best for you.

5 Ways to Lodge Tax Returns

A tax return essentially includes all your financial information – from income streams and expenses to investments and tax deductions. If you’ve overpaid your taxes, you may be entitled to a refund, which will be issued once your tax return has been processed. This process helps the government detect any tax evasion or fraud.

Keep in mind that the deadline for lodging tax returns in Australia is usually October 31, although this can be extended depending on the method you choose to lodge tax returns.

1. Australian Taxation Office (ATO) Website

This is every small business owner’s go-to resource on taxation. The ATO website provides comprehensive guides and handy tools to help you calculate your taxes and file returns. It also has an online portal where you can conveniently lodge your tax returns.

2. Registered Tax Agent

There are tax agents authorised by the ATO that can help you do the following:

Maximise deductions
Ensure tax return is accurate and compliant
Negotiate with the ATO regarding outstanding tax debts

3. Paper Tax Return

This is a free service offered by the ATO for individuals with low incomes or simple tax affairs. The volunteers who help provide this program are trained to help you claim any eligible tax deductions and ensure that your tax return is accurate.

Pro tip

Double check your calculations and deadlines. This helps you avoid penalties and interest charges.

4. Tax Help Program

You can opt to go the solo route by applying a hands-on approach to your taxes. This means that you would need to fill up a physical form and submit it by mail to the ATO. While this may seem inconvenient and inefficient, it’s actually useful for those who prefer tangible documents and don’t have access to the internet or electronic filing options.

5. Bookkeeping Services Australia

Hiring a bookkeeper can take tax and accounting stress off your plate for good. If you’re struggling to keep track of your finances, consider hiring a bookkeeping service, like The Bookkeeping Studio in Bowral, Australia. These services can help you manage your cash flow, reconcile your accounts, as well as make sure that you’re making the most out of your potential tax deductions.

Documents You Need to Prepare for Tax Returns

These are some of the essential documents you would need when filing tax returns with the ATO:

Business basics (tax file number (TFN), income statement, bank details, last year’s Income Tax Assessment)
Documents that show your earnings
Tax deductions

How Long Does the Tax Return Process Take?

The processing time for tax returns in Australia can vary depending on various factors, including the complexity of the return, the lodgement method used, high lodgement volumes, technical issues, and the time of year. If you lodge your taxes through an online platform, the processing time is usually 2 to 3 weeks from the date of lodgement. However, if you go the manual route (by mail), it may take up to 10 weeks to process. Expect delays.

The Bookkeeping Studio: We Make Taxes Simple

Don’t wait until the very last minute to start preparing your financial statements for tax filing. You have to be proactive. If not, you might end up paying more than your initial billing – and maybe a bit of your time and sanity.

Tax filing is different with The Bookkeeping Studio. With bookkeeping experts in your corner, you’ll never have to worry about missing a deadline again. We’ll make sure that you’ll get every tax deduction you deserve (we mean this in a good way, of course). Get your taxes filed on time, every time starting today.