Loads of students, migrant workers, and solo-preneurs are jumping into delivery gigs as their side hustle, mainly because of this awesome thing called 'income pooling.' When you team up with delivery companies, you get to enjoy that sweet flexibility. It means you can juggle multiple platforms without stressing over commitments.
But, hey, here's the thing: juggling all those income sources means you've got to keep tabs on taxes too. It's just one of those special obligations that come with the territory.
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We’ve got you covered when it comes to making the most out of your interaction with an expert accountant! No matter when you decide to get in touch, these ten questions will bring you additional financial insight that helps you grow your savings!
1. Can you help me identify all the tax deductions I'm eligible for as a delivery driver, including any often overlooked expenses?
Let’s be honest, you don’t feel the need to connect with an accountant unless tax comes knocking at your door. That’s okay, many sole traders do that but it costs them in terms of maximising potential savings. Your accountant will lodge a return for the expenses you have tracked so far, probably manually, whenever you find time. This means settling for less than you can claim. Make sure to ask this question, it’ll keep you a step ahead of your taxes.
2. How can I optimise my vehicle expenses, such as fuel, maintenance, and insurance, to maximise tax deductions while staying compliant with tax laws?
Understanding your tax obligations and how they are actually helpful rather than limiting will help you gain a clear view of your territory as well as future financial planning. You have to understand that with an ABN comes the additional responsibilities of a business owner. Optimising is different from spending less or budgeting.
It is basically hacking into the core of your expenses and breaking them up into taggable categories. The accountant then helps you chalk out which categories account for the most in tax deductions.
3. Are there any changes in tax regulations or laws that I should be aware of as a delivery driver, and how might they impact my tax obligations?
Although this is a general query, laws around the flexible economic industries keep changing every now and then. You can also keep updated about these from ATO’s official column for gig workers.
4. Can you provide advice on structuring my business finances to minimise tax liabilities and maximise savings?
Wider optimisation is essential if you are a full-time delivery partner with additional side hustles. You should not have to shoulder your financial liabilities all by yourself. Your accountant can give you expert advice on debt, investment, ownership and more. Make best use of that advice!
5. What strategies can I implement to manage my cash flow more effectively and ensure financial stability throughout the year?
Income and cash flow management from multiple sources or scattered over an indefinite period is a huge headache. It takes speedy calculation and forecasting to estimate accurate tax returns and lodge for them within a strict deadline. You deserve transparent communication from your accountant on these grounds.
6. Are there any tax planning opportunities or strategies I should consider to reduce my tax burden in the current financial year?
Super important, double star this one and try to get an idea of forecasting your tax burden from your accountant. It’ll give you a clear picture of how soon you should get in touch with a tax expert in the next financial year to minimise your tax burden and fully wrap up your deduction report (including GST if it applies to you).
7. Can you assist me in setting up a retirement savings plan or other investment vehicles to secure my financial future as a self-employed individual?
Not owning the vehicle you drive for delivery can be tricky. It increases your expense and over all span of debt. Taking your accountant’s advice in reducing business expenses and finding riskless investment opportunities such as superannuation funds is helpful.
It’s time to stop worrying about your future! Become a pro who is awesome at navigating through tax season and beyond.
8. How can I accurately track and record my business expenses to streamline the tax lodgment process and avoid potential audits or discrepancies?
Dependency can feel like a burden in itself. You can always begin to learn from your past expense patterns and all that you missed out on. This is easy if you have an automatic digital tracker!
9. What documentation or records do I need to maintain to support my tax deductions and ensure compliance with Australian tax laws?
We’re coming to the end of the list and we’ve saved the best for the last. Most estimated deductions don’t make the cut because there isn’t enough proof of expense. Sometimes receipts and expense tagging aren’t enough. You’ve got to be proactive and determined to avoid loopholes. Ask your accountant about the documentation that are instantly accepted and approved.
10. Are there any additional financial services or resources you recommend for delivery drivers, such as budgeting tools or financial literacy workshops, to enhance our financial management skills?
You can always go the extra mile. Financial literacy and awareness make excellent skill sets that will support you even beyond your delivery gigs. You are as much an entrepreneur as the next door business owner. Appreciate your opportunities and take the leap to secure your income!
Figuring all of this out on your own is super hectic. Unless you decide otherwise and take action now. Connect with certified tax experts who are experienced and eager to help you. You don’t have to wait for tax season to start planning your savings goal, track your tax estimates so far today!