Five steps to set your business up for tax-time success
It’s that time of year – the time for us numbers nerds to shine! While most of the planet dread tax time, us BAS agents / bookkeepers absolutely love it. It’s always easier if you’ve been keeping on top of your financials throughout the year – but personally, I also love helping to organise even the most disorganised set of accounts so that getting your end of year tax done is a piece of cake!
To help those non-nerds out there, here are a few quick tips to help you get the best tax result possible this year while ensuring you fulfil all your legal and tax obligations. Let’s do this!
1/ Get your data right. Tax time is a breeze if you’ve been maintaining accurate data over the year, supported by your BAS agent or bookkeeper. Accurate data enables your accountant to provide the right advice, and gives you the clarity and confidence to make the best decisions at the right time for your business and personal wealth.
2/ Do tax planning. Every business owner should schedule a tax planning meeting with your accountant in May / early June every year. Your accountant will review your year-to-date financials and get an idea from you about what the rest of the year will look like. They will then recommend a range of actions for you to take before 30 June that will give you the best tax outcome possible. They will also provide actions and targets for the next financial year that will set you up for success.
3/ Make extra salary sacrifice payments to super before 30 June. If you’re under the relevant contribution cap, it may be beneficial to make additional salary sacrifice payments to super (meaning you have less taxable income). It is Important to note that your super fund must physically receive and process any payments into your personal superannuation account before 30 June for them to be tax-deductible in that financial year.
4/ Ensure your payroll is up to date and fully reconciled. To ensure you meet your legal and tax obligations, and that your employees are receiving their correct entitlements, it’s important to review and finalise your payroll in time for 30 June. Again, paying attention to this throughout the year will mean less headaches prior to tax time.
5/ Get your budgets done for the next financial year. It’s powerful to be able to compare your performance each month against your targets, so you can regularly assess if you’re on track to reach your goals. Doing your budget for the year ahead will give you direction and help guide your activities throughout the year.