Many people think that 30 June is the date they need to start thinking about their tax for the past year.
Sadly, this can cost them a lot of money.
You see, once 30 June passes, it’s like the horse has bolted. You can shut the gate, but it’s too late. After 30 June there is very little you can do to minimise your tax payable for the recently completed financial year.
By taking action, before 30 June, however, there is often a lot of scope to do things that will reduce your tax payable for the current year.
And by ‘before’, we don’t mean 29 June!
To do a thorough job with tax planning, the process needs to begin now.
And that time is upon us.
Why now?
We find this is the best time because it is after the March BAS has been completed, which gives 9 months of actual trading result and profit figures to work with.
Ask yourself, do you find it difficult to manage your business and cash flow when there is an unknown tax debt looming in the not to distant future?
You are not alone. Many business owners and individuals are asking themselves questions like, “What tax will I have to pay this year?” Or,
“Have I put enough money aside for my tax?”
These are common ‘stay awake’ questions for business owners. Very stressful.
So, what can you do about this?
Take action now, not in June and certainly not in July!
It is especially important to start planning early if there is any potential tax debt.
Your first step is to ask your accountant here to review your figures for the July to March period to determine your profit. Then with an understanding of your business and its seasonal fluctuations, we prepare a projected business profit for the remaining 3 months (April, May & June). This will give us a profit estimate for the full financial year.
From here we know the likely tax position of the business (company) and/or the individuals (mum, dad and family) and with you discuss different scenarios and things you can do before the end of the financial year to help minimise your tax.
You will then have a clear picture of your tax liability and when it will be due, which means you will find it easier to manage your cash flow.
It also gives you that comforting sense of certainty.
As a business owner, the tax planning process gives you options and clear actions to implement or consider well before the 30 June deadline.
This means there are no last minute ‘knee jerk’ decisions and actions that you might later regret.
It also means you can focus on your business, not worry about your tax position.
After all, there are better reasons to ‘stay awake’, aren’t there?
Here’s what you need to do to start your tax planning process with us:
- Ensure your records are up to date to the end of March.
- Arrange for us to review the profit for the 9 months and project the income to 30 June.
- We will then arrange a time to meet with you to discuss the profit estimate and advise you on your tax planning options well before 30 June.
More restful nights’ sleep for you lay ahead.