End of Financial Year 2018 (EOFY) is just around the corner and if you are not prepared, it could cost your business thousands of dollars in penalties.
Whether you like it or not, everyone has to deal with tax time once a year and it can be a huge burden. EOFY is on 30 June 2018 and you will have until 31 October to lodge your return.
But there is an easier way to do things. If you engage a registered tax agent to act on your behalf, you will qualify for an extension.
There are a number of areas you should look to address to ensure you’re prepared as we approach financial year end:
Be prepared for EOFY
Do you know what your lodgement dates are? If you align yourself with a tax agent, do you know you get an extension on your lodgement dates? In some cases, this can mean you have an additional 7 months to lodge your return.
Be organised before EOFY
A tax agent can help you take the stress out of tax time, but you still need to be organised. You will need to have all relevant documentation in order for your returns to be prepared and lodged. Better still, align yourself with a tax agent that offers year-round support through cloud-based accounting solutions. Dexterous Group uses the award-winning accounting software Xero. Goodbye filing cabinets, hello super organised book and record keeping!
Small Business Tax concessions
A tax agent can help you identify what concessions are available to your business and assess their appropriateness. Cash flow permitting; now is a great time to review your IT infrastructure or purchase that for a new motor vehicle for your business. The most popular concession available to small businesses is the instant asset write off. As a small business, you can spend up to $20k on a new asset and claim an immediate tax deduction. This was extended to 30 June 2019 in the last budget.
Bad debts tax deduction at EOFY
When did you last review your debtors ledger? Do you have any debtors that are unresponsive and not worth chasing? In order to claim an income tax deduction for any bad debts, these must be physically written off in the year you wish to claim on them, so it’s important to do this before 30 June. It’s well worth getting advice on this from your tax agent.
Feeling charitable and been putting off making that donation? A donation made to a Deductible Gift Recipient prior to 30 June will be deductible against your income and therefore reduce the amount of tax you pay.
Sole traders may want to consider making a personal superannuation contribution. There are certain conditions that must be met and these are found here. This deduction will offset the income you’ve earned during the financial year.
Getting the right advice at EOFY
Don’t make tax time a chore. No one enjoys getting a large tax bill (despite it meaning you’re making money) and by addressing the above you are ensuring you’re in the best position as we approach EOFY.
Contact the Dexterous team TODAY to find out what concessions you may be entitled to and let us take the stress out of tax time so you can concentrate on growing your business. Call us on 1300 996 928 or send us an email on firstname.lastname@example.org and let us do the hard work for you.
You can read the latest tax information on the ATO website.