Do you know your tax position for the 2021 financial year?

 In Accounting, TAX

We have entered the time of year that we work with many clients to get a handle on their tax position for the 2021 financial year.

Commonly referred to as tax planning, these strategy sessions allow us to estimate your tax position to help you make decisions, that could minimise your tax outcome before June 30.

Why are tax planning sessions important?

Tax planning is all about looking at your taxable income for the current financial year, getting an estimate of your tax payable and then implementing strategies to decrease the tax payable before 30 June.

It gives peace of mind to know what to expect with your 2021 tax return, and presents opportunities to minimise your tax that you might not have considered yet.

This strategy session is not just beneficial for businesses that have made profit and are looking to purchase equipment, put extra money into super or pay down debtors. If your business did not perform as hoped in the 20-21 financial year, or was impacted by COVID, it is a chance to:

• Understand the impact of the difference this year, compared to previous years.
• Know any additional tax you may be liable for due to JobKeeper.
• Discuss your business viability for the 21-22 year.
• Provide an opportunity to look at further ways to improve your business with a budget, or other assistance.

What is involved?

For these strategy sessions to provide the most value, we require your Xero file to be up to date so we can pull accurate data and develop some reports for you. If you require assistance bringing your file up to date but don’t have the time, our bookkeeping hero’s at Empire Bookkeeping can easily help.

Once we have collated the data required, we will book you in with your accountant who will come prepared with everything you need to know about your current business position, including potential strategies for tax minimisation and business improvement.

It is also a chance for you to discuss any business worries or opportunities with your accountant, who will be more than happy to provide advice and guidance accordingly.

What will this information do for you?

Well, you know what they say… Knowledge is power! The more you understand your business numbers, the better your decision making, risk taking and ability to identify where you want your business to go.

Overall, tax planning or positioning, what ever you call it, is how you back your decisions. If you know that you have made a loss this year, then you can plan and prioritise your next moves to improve your position. If you have got a tax bill coming, we can then look at strategies to minimise your tax.

Where to from here?

If your accounting engagement with us includes tax planning, we will be in contact to book you in April/May/June as usual – if you’re not sure or are interested in us looking after this for you this year, please submit the form below or phone 07 3124 0244. We’d love to discuss how this could benefit your particular business requirements!

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