Our tax time tips may help you start the new financial year organised and motivated – and may even help you maximise your tax benefits.
- Clear your expenses
Try and pay any known business expenses before the end of financial year. You may then be able to claim a deduction in this year’s tax return, rather than waiting another 12 months. If your business has an annual turn over of less than $2 million remember you are eligible for an immediate depreciation write off for assets under $20,000.
- Take stock
If your business sells products consider a stocktake before the end of financial year. This will allow you write off old stock and help provide real-time clarity about how you’re positioned to start the new financial year. You should also take the time review depreciable assets.
- Top up your employees’ super
If you have employees you will know that the superannuation guarantee is due by the 28th day following a quarter (i.e. July 28). If you pay your employees’ super before June 30, rather than in July you can bring this deductible expense forward.
- Clear debtors
Unfortunately, no matter what measures you put into place for an efficient invoicing system some customers or suppliers will fall behind with payment. Use June 30 as a prompt to collect their payment – or look at the consequences of writing off bad debt.
- Consider your interest
Examine the timing of interest earned to see if it will count for this year’s return. Particularly if you receive interest dividends, they may not be assessable if they are only declared and not paid. Work with your accountant to take into account all interest incoming and owing for an accurate tax return.
Talk to our team about how to get organised for tax time. Contact us on (08) 9881 5585 to book your tax appointment.