Is your business prepared for EOFY?
Posted 16 May '18
Posted 16 May '18
June 30 is fast approaching and it’s time to start looking at your business finances to ensure that you are prepared for the end of the financial year aka Taxxxx tiiiiimmeeee!
By ‘being prepared’ we mean that thing we like to call Tax Planning, which essentially is reviewing your business numbers for the year and putting some strategies in place to ensure you can save money on your tax bill.
At Empire Accountants we like to sit down with our business clients each year to put tax saving strategies in place, so here are 4 simple strategies to consider below.
1. Write-Off Bad Debts
Review your debtors to ensure that any money owed is recoverable. By going through your list and identifying any accounts that are not going to be paid, you can then include those bad debts in your accounts to bring your taxable income down.
2. Purchasing
Bring forward any purchasing you need to do before 30 June 2018. This can include things like office supplies, repairs and maintenance, computer hardware, maybe that new work ute under $20, 000 you’ve been looking at (if you’re eligible for the $20k Asset Write-Off that is).
Note – Only advisable for businesses that are intending to purchase new supplies anyway. This is an opportunity to bring purchases forward a month and reduce taxable income.
3. Superannuation
Superannuation can only be claimed as a deduction when it is paid. This means we could look at paying your June quarter superannuation liability for employees and considering your personal superannuation contributions before the end of the year to ensure you are entitled to claim the deduction this year.
4. Deferring Income
Are there any invoices that you can defer to July 2018 to reduce your taxable income? You need to ensure this won’t negatively impact your cash-flow, however, if possible this can be another strategy to saving tax this EOFY!
If you need help with your tax saving this year, call Empire Accountants for a complimentary meeting to see how we can help you. 07 3124 0244
Many business owners think tax planning means meeting with their accountant in June and finding a few last-minute deductions before the end
of the financial year.The reality is that true tax planning starts much earlier in the year.
For established businesses, proactive tax planning isn’t about scrambling to reduce tax at the last minute. It’s about creating a strategy
throughout the year that supports business growth, improves cash flow, and helps owners make better financial decisions.
For many small business owners, the end of the financial year (EOFY) feels like the finish line. Once tax planning is complete, financial statements are prepared, and compliance obligations are lodged, it is tempting to return to business as usual.
Looking for the best accountant in Brisbane? Learn what to look for in an accountant, from proactive advice and communication to tailored support for growing businesses.