With 30 June fast approaching, we are hearing from many accountants and tax professionals about the need to undertake tax planning to minimise the amount of tax that you will pay for this current financial year.
Now is the time to be reviewing your business profits and considering what actions, if any, you need to take prior to 30 June.
Tax planning should be a year long process. There shouldn’t be a mad panic in the last few weeks of June to spend spend spend. Your accountant should be speaking to you throughout the year to review your business results and discuss the decision making processes you choose to implement in your business, considering the most tax effective options at the time.
Did you have plans to buy that new car? Do you really need that new laptop?
Spending up in June to get that tax saving of 27.5% for the sake of it, is like going to the boxing day sales and showing off the bargains you got when you had no intention of buying the items in the first place.
Sure, if you intend to buy that new office furniture then purchasing it in June instead of July makes sense. If you can hold off invoicing your customers without hindering your cash flow then this will help reduce your tax. Making your superannuation contributions prior to 30 June to get the tax deduction this year is also a sensible business decision.
A Switched-On business owner is reviewing their business profits and business results on a monthly basis.
A Switched-On business owner is making informed decisions considering the impact on staff morale, customer satisfaction, supplier relations and of course, cash flow.
A Switched-On business owner is making decisions which will help them achieve their overall business objectives.
A Switched-On business owner is making tax planning decisions all year long.
Want to become that Switched-On Business Owner, or already are but feel that you aren’t getting the support and guidance from your accountant? Reach out for an obligation free chat.