Last month I talked about the benefits of tax planning. Hopefully, most small business accountants would be contacting their business clients and asking them to review their tax position well before 30 June.
However, if you are running out of time, here are some basic quick tips that you should do before Thursday next week.
Figure 1: Do SOME tax planning at least before 30 June or you could be just dancing in the dark.
1. Get Your Family Trust Resolution Done Before 30 June
If you have a family trust, it is imperative that you ensure that your family trust distribution resolution for each trust is signed before 30 June. In the old days (a few years ago) it was thought that this could be done when your small business accountant was preparing your financial statements and tax returns. This is not acceptable to the ATO and if you don't do this in accordance with your trust deed, you could be up for some massive tax payable and penalty interest.
2. Pay Superannuation Before 30 June
If you want the deduction for this financial year, please ensure that any superannuation for your employees or yourself is paid before 30 June. Of course, check with your small business accountants Sydney and Dubbo the tax effect of any extra superannuation paid over and above your superannuation guarantee to ensure deductibility.
3. Shareholder Loans
If you operate a company and have a loan agreement with it, ensure that you meet any minimum loan repayments before 30 June or you may be hit with an automatic deemed dividend for the balance of the loan.
4. Perform A Stocktake & Review Fixed Assets
Whilst you may not have to perform a stocktake if your group turnover is less than $2,000,000 and you have qualified as a Small Business Entity (SBE) if you estimate that the stock has not moved by more than $5,000, as a small business accountant Sydney and Dubbo, I would strongly recommend that you still count your stock
Why? Well you want to ensure that your margins look right and that stock has not gone 'missing'. You also want to have a look and see if you can write off any obsolete stock and plant so that you can reduce your taxable income.
Figure 2: Do a stocktake and write off any old stock.
5. Write Off Bad Debts
Again this is a good idea if you want to reduce your tax. Be aware that you do have to satisfy the ATO's guidelines for what is regarded as 'bad' for tax purposes.
6. Pay Expenses Coming Up
Consider paying the following before 30 June to get a tax deduction this financial year:
- repairs and maintenance;
- printing and stationery;
- marketing materials.
While ever it's before 30 June it's never too late to do something to save tax.
Allocate some time in your diary to review and act on some of the tips above and this could save you thousands!