The financial year end can sneak up on you very quickly and if you’re not prepared, it can cost you and your business thousands.
Whether you like it or not, everyone has to deal with tax at least once a year and it can become a burden for many. However, if you’re prepared for tax time it can change the way you see the next few months. If you’re a small business and eligible for the small business tax concessions then it can be seen as an opportunity to invest back into the business to take advantage of the concessions available.
There are a few key areas you should look to address to ensure you’re better prepared as we approach financial year end;
1. Prepare yourself – do you know what your lodgment dates are? If you align yourself with a tax agent do you know you get an extension on your lodgment dates? In some cases, this can mean you have an additional 7 months to pay any tax.
2. Tax concessions – know what concessions are available to your business and assess the appropriateness of these. Cash flow-permitting, now is a great time to review your IT infrastructure or the need for a new motor vehicle for your business.
3. Bad debts – when did you last review your debtors ledger? Do you have aged debtors that are non-responsive and not worth chasing? In order to claim an income tax deduction for any bad debts, these should be physically written off in the year you wish to claim so it’s an important consideration between now and 30 June.
Don’t make tax time a chore and depending on the size of your business you can very quickly assess these key areas raised. No one enjoys getting a large tax bill (despite it meaning you’re making money) however by addressing the above you are ensuring you’re in the best position as we approach year-end. These areas just scrap the surface but they highlight the sorts of questions you need to be asking yourself and your Accountant.
If you’re looking for an adviser and someone to provide you with confidence that you’ve done all you can then please contact Dexterous Group Team and we’d be happy to help. And, who knows, you might look at tax time differently next year!