Let’s talk Tax Planning, yep, I know it makes you yawn!!!
But it is nearly that time of year again when the end of the financial year is looming.
Do you know how your year has gone and what extra tax on top of your instalments you may have to pay when your tax returns are completed?
If the answer is yes, then that’s awesome. Enjoy the slide to the end of the financial year.
If the answer is no, then now is the time to make an appointment with your Accountant and give them the go ahead to do a year to date review once your March BAS has been lodged.
Why is tax planning important?
It helps you to manage your tax liability and avoid any unexpected tax bills at the end of the year. By regularly reviewing your tax position before the end of the year, you, as the business owner can make informed decisions about your finances and adjust your operations accordingly. For example: do you delay deriving assessable income or bring forward deductible expenses?
Effective year to date tax planning allows you to identify any potential tax deductions and credits that you may be eligible for, whether it is a good idea to buy or finance an asset needed for the business, for private companies looking at your Div 7A Loans and other tax effective strategies that your Accountant can help you with.
By taking advantage of these opportunities, business owners can reduce their tax liability and keep more money in their pocket. We can all do with the extra money in our pocket, right?
So, are you going to make informed decisions about your finances and minimize your tax liability, while avoiding any unpleasant surprises that come tax time?
To put it another way are you going to get to your destination with a blindfold on and hope you take the right paths or going to take the blindfold off and enjoy the scenic view on the way?
PS. I am an avid tax planner come May/June and can be often seen in my office at home on nights/weekends tapping away at the keyboard planning our ins and outs, so I know our tax situation for our 2 businesses. My Accountant loves the fact that I know what tax bill is coming. And no, I can’t do this for you as it is a Tax Agent Service and I love/respect the Accountants I get to work with for our clients.