6 Tax Deductions for Small Consulting Businesses 

Juggling client projects, business development, ops and accounting pulls consultants in 100 directions. But don’t let potential tax savings fall off the priority list that could retain hard-earned income.

As the fiscal year wraps up, here are six areas primed for deductions consultancies often overlook.

1. Instant Asset Write-Offs

Purchasing laptops, servers, projectors or other eligible tech by June 30, 2023 may qualify for temporary full expensing.

Just confirm items hit ATO criteria first. And remember, maximising claims now reduces future offset availability when replacing aging assets.

2. Depreciation of Existing Assets

Your current IT fleet, software platforms, office equipment and furnishings incrementally qualify for annual wear and tear deductions.

Catalog and calculate eligible values to right-size annual claims. Every percentage counts when managing consultancy tax obligations.

3. Prepay Expenses

Paying future professional memberships/subscriptions, SaaS contracts, advertising slots or insurances early pulls forward potential deductions.

Just weigh cash flow tradeoffs in FY2024 if less expenses remain to offset consultancy income without ample lead time.

4. Deductible Finance Costs

Tally interest and fees from biz cards, credit lines, practice loans and other financing to chip away at margins.

5. Continuing Education

The conferences, accreditations and training keeping teams exceptional may trim taxes too.

But keep ironclad records of costs, qualifications obtained and curriculum for bulletproof claims.

6. Tracking Home Office Space Usage

Convert portions of household costs like utilities, cleaning and occupancy fees into deductions by substantiating workspace use. Calculate hourly usage rates meticulously.

And Much More...

Automotive, legal and accounting fees, motive power, telecoms, depreciation schedules - business costs add up. Continually capture proof across operations to inform annual tax prep.

For personalised guidance tailored to your consultancy’s situation, book a Parpera small biz tax consultation today!

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Published on the
January 3, 2024

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