05 May TAX PLANNING 101
Argh, the dreaded “Tax Planning” blog post.
DO you know what, I actually love tax planning, Why you may ask? Because proactively planning for your tax helps you to sleep at night, ensures you are ready for your tax obligations and enables you to put in place (working with your accountant) strategies to help legally minimise your tax liability.
One other reason, if you are planning for your tax it means you have had a successful year in business, winning…
This time of year (for our Aussie business owners) is the perfect time to start planning for your tax, with the end of the financial year just around the corner.
How to plan for your tax:
* Step 1 – Ensure your current financial year accounts are up-to-date, if not, touch base with your accountant or bookkeeper and ask them to finish the April accounts for you as soon as possible;
* Step 2 – Review your Profit & Loss to the end of April and estimate your net Profit for the next two months;
* Step 3 – From the above analysis, calculate your estimated Profit for the year and calculate your estimated tax liability;
* Step 4 – Are there any strategies you could implement to help reduce your year-end Profit and legally minimise your tax liability?
Some Strategies that you can implement to help minimise your Profit & reduce your tax liability?
* Do you have any expenses that you could pay prior to the end of the Financial Year?
* Could you contribute more money into your Superannuation Fund?
* Pay your employee’s superannuation for the June Quarter prior to 25th June,
* Review your Debtors account and write-off any Bad Debts,
* Did you purchase any equipment that you can write-off under the instant asset write-off scheme?
Tax Planning is an essential business planning step and one that should be performed every year. I recommend working closely with your accountant & bookkeeper now to ensure you are ready tax time.
If you are looking for a new accountant please let me know and I can connect you with two accountants I highly recommend.
Hi, I’m Phoebe. and I love business! As a sought-after qualified accountant, I come from a place of experience, with over 15 years of running my own accountancy firm, MGA Accountants, I scaled the business to double the size before successfully selling in 2015. Now I am focusing on what I love, helping Professional and Trade service business owners step up from being the Technician to the true CEO of their business, to create more profit and time freedom to live the life of their dreams.