WITH LESS than a month until the end of the financial year it’s the time for small business owners to maximise their tax benefits for this year and the year ahead. Take the time to check out the deductions and incentives available to you and see if they’re worth pursuing. Also a quick look at some basics, could put you in a good starting position for the next financial year, and make life a little less stressful come June 30.
1. Get your paperwork in order and have a good understanding of your company’s financial situation.
I don’t know one person who can confidently say that their paperwork is in good order or can remember where they’ve stashed every receipt and bank statement. Of course, the intentions are always to file it a bit later or at the end of the working week. If this sounds like you then start your paper hunt now! Mini-checklist:
•Bank statements
•Receipts
•Paid compulsory super contributions
•Pre-pay interest
•Reconciled payroll, accounts receivable and accounts payable
2. Meet with your accountant.
I personally like to make a meeting with my accountant first and then work towards that date and have all my paperwork in order. There’s nothing like a deadline to get you organised! And, it’s much better to be working to that deadline than up to midnight on D-day.
3. Go shopping.
Buy items now that your business will genuinely need in the near future to maximise deductions for this year. Some things to consider are office supplies or new equipment. It goes without saying to only do this if cash flow permits.
4. Pay your bills early.
Pay any outstanding bills now to maximise your deduction this year and lower your tax bill some more.
5. Put your income on hold.
By deferring any income your business is entitled to receive until the next financial year, you will cut your tax bill, so it may pay to delay invoicing clients so that they pay their accounts at the start of the next financial year.
6. Check to see if you’re entitled to any small business tax concessions.
Some small businesses can take advantage of certain special tax rules. Make sure you review these rules to ensure you’re claiming all the deductions your business is legally entitled to. Visit the Australian Taxation Office website www.ato.gov.au for further information.
7. Plan for the coming year.
Review the financial performance of your business and have a solid and accurate understanding of your business’ position. And, if you find yourself struggling to find all your bits of paper this financial year then make a new financial year resolution to improve your filing skills.
I know I will be!
It’s a smart idea to have your tax return filed as soon as possible. Not only does this mean you’ll get the job done quickly and not have it hanging over you, but more importantly you’ll get back any tax you’re owed quicker and can put it to work for you.
This article is for general information purposes only and is not intended as financial or professional advice. It has not been prepared with reference to the financial circumstances of any particular person or business and should not be relied on as such. You should seek your own independent financial, legal and taxation advice before making any decision about any action in relation to the material in this article.
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