Technology is evolving and with it, the way a business is run is changing. There once was a time where the success of a business could be measured by the number of brick and mortar locations it had to its name. Now, some of the biggest businesses in the world are run remotely, with few or no physical locations to their name, with employees working remotely from their homes.
In fact, business owners who conduct the bulk of their business operations from home are growing. An analysis of Australian Bureau of Statistics data shows the number of people working from home has grown from 20% to 30% in the space of 15 years.
With that in mind, we’ve come up with some helpful tips for running your business from home in 2019.
How to make sure you get stuff done when running your business from home
One of the main criticisms found in arguments against working from home is the potential of becoming distracted by your “home life”. While this may seem like a valid argument, working from home for many can prove beneficial.
How do you stay on task when working from home?
1. Have a shower & get dressed
While it may seem like an odd tip, it’s proven quite useful to many business owners. Getting changed for work helps to switch your brain to working mode, allowing you to focus on tasks that are important to your business.
2. Set boundaries
One of the dangers of working from home concerns boundaries. Specifically, with regard to friends. As a business owner, it’s your job to protect efficiency within your business. For friends who like to drop by unannounced: make sure they know your “office hours” and if they still don’t get the message, send them a consultation fee invoice.
3. Take breaks
Working from home can go one of two ways. You either take a more relaxed approach, or you work yourself to the bone without realising it. While it’s a good idea to take all work conducted at home seriously. You absolutely must remember to take breaks. Just like a computer, your brain needs time to reset and rethink in order to continue operating efficiently.
Claiming tax when running your business from home
One of the great things about running your business from home is the ability to claim deductions on the work you carry out at home. This also includes any expenses created in using your home for business.
If you are a business owner running your business from home, you can claim:
- The cost of the utilities used in the main room your business utilises.
- Phone costs. You can claim deductions for business calls but cannot claim installation costs.
- The decline in the value of office equipment.
- The decline in value of curtains, carpets and light fittings.
Note: It is important to remember that all claims must be made in proportion to the business use of the equipment or utility. Personal use of a business space, business equipment or utilities cannot be claimed on tax. It is important to work with your accountant to get this right to avoid any potential mistakes in your taxes to minimise the chance of an audit.
Additionally, you can also claim a portion of the occupancy expenses for the room you conduct your business operations in. Such expenses you can claim include rent, mortgage interest, and rates. As mentioned above, you will need to separate personal and business use when claiming occupancy expenses.
About Fitzpatrick Group
Fitzpatrick Group provides Sydney with Business Accounting and Business Advisory services with a focus on optimising business processes and improving cash flow. We do this through a team built from ordinary people who do everyday things with extraordinary passion.
