Giving back to the Community
Many cafes and restaurants are generous in giving back to the community and COVID support programs. Add sanitation and disinfection equipment, screens, and staff training under the COVID-related expenses to your application for one of the many small business grants offered by the State and Local governments.
Charitable activities or donations to sporting groups and schools are great initiatives but are usually a marketing or advertising expense since they don’t have charitable status. Support these contributions with a receipt from a registered charity.
Vehicles and Equipment
There are various ways to claim for motor vehicle deductions for a car partly used for private and part business use. Identify which method gives you the best tax savings and discuss with your accountant how you can take full advantage of the benefits.
A wise option also for new or used equipment is renting to own or renting to buy. It is a tax deduction and it helps to preserve your capital. The current COVID crisis has taught everyone about the importance of having savings and working capital.
If you are able to invest in new equipment, now is the right time. Instead of depreciating the value over several years, The $150,000 instant asset write-off for equipment allows you to claim the entire deductible business equipment if purchased before 30th of December 2020.
Food and Beverage
Incorporate online food & beverage ordering to your bookkeeping system which is your second largest expense. Most suppliers are also ready to conduct transactions with you online as it has become part of the new normal.
Also, there may be a situation to write down the value to zero for your out-of-date liquor that could no longer be used even for cooking. It’s worth checking but be prepared to justify what you’ve done.
Paperwork and Personal Development
Take online courses. There are many available regarding Business and Time Management and though this can be claimed as a personal expense if it’s not directly work-related but this is now more significant than ever.
Also, invest in online staffing and payroll systems. They cost less compared to those sloppy rosters and untracked hours. And to keep track of your expenses more easily, upgrade your bookkeeping system. There are several popular DIY systems that are easy to use like XERO and MYOB but they need to be set up professionally. Common classification mistakes are common and could mean you pay more tax.
Remember to stay amiable to your accountant. Maintain that good connection and stay connected for lots of money-saving advice!