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Small Business Tax Deductions Through Online Fax: Your Guide

While faxing may seem like an ancient piece of technology, there is still plenty of life left in faxing. In fact, online faxing is one of the most cybersecurity forms of document transmission, as documents sent via online fax are protected with Transport Layer Security (TLS) encryption.

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Naturally, many businesses use online faxing to transmit their most confidential and important tax documents to their tax agents. In this guide, we’ll show you how to use online faxing services like eFax to handle your small business tax deductions quickly and easily.

Introduction to Online Fax

Before we dive into using faxing for tax documents, let’s first cover the basics of online faxing technology. While traditional faxing services transmit faxes via ISDN and PSDN fax lines, online faxing transmits documents via the internet. Using online fax, you can fax through your smartphone, computer, tablet or email.

When you send a fax, your faxing provider will encrypt it with TLS and transmit it to your recipient. Your recipient will receive your fax through their normal faxing system.

Why Fax is Perfect for Tax: Online Fax Features & Benefits

Online faxing systems have been around for over twenty years now. During that period, service providers like eFax have added features to their systems that make online fax perfect for handling tax documents. Here are five of those features:

#1. Fax via Email

Using eFax, you can send faxes through your inbox like a regular email. This feature is perfect for businesses who work with an accountant and a tax agent, as you can simply send your faxes alongside your regular correspondence emails.

#2. Digital Signatures

eFax’s online faxing system will also allow you to sign any fax with a signature that is freshly drawn or pre-saved. As filing small business tax deductions can require dozens of signatures, signing your faxes digitally can save you time and a hand cramp.

#3. Cloud-Based Storage

The Australian Taxation Office (ATO) requires Australian businesses to keep their tax records for at least five years. As all faxes transmitted through online faxing are stored with cloud-based storage, you can use your faxing system to keep your 2021 tax deduction documents secure (as well as save some space in the office filing cabinet).

#4. PDF Converter

eFax’s online faxing service has an inbuilt PDF converter that can change your documents into PDFs. As many businesses need to send multiple documents to their tax agent, online faxing can help you convert your files quickly so you can transmit them faster.

#5. Large File Transfer

Finally, eFax’s online fax system can send faxes up to 3GB. As many small businesses need to process dozens of small business deduction documents, large file transfers can help you send them to your tax agent in one go.

How eFax Can Help you Claim Tax Deductions

While the ATO no longer accepts tax return applications through fax, online faxing providers like eFax can still help you simplify your faxes by making it easy to send tax documents to your tax agent. This section will show you how to use online faxing for small business tax deductions.

Things you can write off on taxes for small business

Australian businesses can reduce their taxable income through small business tax deductions. Generally, this includes claiming a deduction on operating expenses and capital expenses that you incur during the financial year.

Operating expenses include the general costs businesses incur from running, including:

  • Employee wages

  • Marketing

  • Bad debts

  • Insurance premiums

  • Bank fees

  • Premises expenses (electricity, water, land tax etc.)

  • Legal expenses

  • Internet or website provider fees

  • Software fees

  • Freight and transport

  • Office stationery

  • Online faxing fees

Capital expenses include depreciating assets or the expenses you incur through improving your business. This includes:

  • Machinery

  • Cars

  • Landline phones

  • Carpet, curtains and furniture

  • Mobile phones and tablets

  • Computers and accessories

To claim tax deductions on these expenses, you will need to submit documents recording the expense to your tax agent. Here’s how to do that via online faxing.

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How to Send Tax Documents To Your Tax Agent

Step 1. Open the eFax portal, desktop app, mobile app, or your email.

Step 2. Click ‘compose message’ or ‘new fax’.

Step 3. Type in your tax agent’s fax number, or select their contact from your address book. Note: Ensure you always include your tax agent’s full fax number, including their country and area code (i.e. ‘61’ for Australia and ‘3’ for Melbourne). Then, type “@efaxsend.com” after the fax number, leaving no spaces.

Step 4. Attach up to ten documents by clicking ‘attach’.

Step 5. Fill in the fax cover sheet.

Step 6. Press ‘send’.

When you send a fax with eFax, eFax will automatically save it in your ‘sent faxes’ folder.

How To Receive Faxes From Your Tax Agent

Step 1. Open the eFax portal, desktop app, mobile app or your email.

Step 2. Click ‘received faxes’.

Step 3. Locate your fax.

Once you have received a tax document, you can add a digital signature, print it, edit it or delete it through eFax by clicking ‘edit’.

How to Fax your Tax Documents For Free

If you want to fax your fax documents but don’t have online faxing, you can use eFax’s free trial. eFax’s free trial lasts for 30 days and includes:

  • Up to 400 faxes

  • Full access to eFax’s features

  • A free online fax number

Click here to start your free trial.

Why eFax?

eFax is the perfect online faxing provider for claiming small business tax deductions. With over 11 million customers in 46 countries worldwide, eFax is a leading fax provider. eFax’s faxing system is simple, straightforward and flexible – giving you the ability to handle your fax documents anywhere. It’s also full of features, including large file transfer, a PDF converter, digital signatures and cloud-based storage.

But that’s not the only reason.

As analog fax lines are being disconnected with the NBN rollout, many businesses are losing their fax connection. But not with eFax. eFax transmits faxes via the internet, meaning they are future-proof and fully NBN-compatible. eFax is even a business NBN fax provider.

If you’re looking to partner with an online fax provider you can trust, try eFax’s free 30-day free trial here or call 1800 283 361.

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