our expert tax advisors at Ashmans Accounting have compiled everything you need to consider when implementing an effective tax strategy so you can make the most of your hard-earned money!
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our expert tax advisors at Ashmans Accounting have compiled everything you need to consider when implementing an effective tax strategy so you can make the most of your hard-earned money!
Don’t let tax season sneak up on you this year! As the end of the financial year approaches in Australia, the key to minimising your taxes, avoiding liabilities, and maximising your returns as a small or medium-sized business comes down to having the right tax plan. That’s why our expert tax advisors at Ashmans Accounting have compiled everything you need to consider when implementing an effective tax strategy so you can make the most of your hard-earned money!
Firstly, you need to understand how to manage your cash flow (in other words, your payables and receivables). Rather than scrambling during tax season to get your documentation together, keeping detailed, organised, and accurate records of business transactions throughout the year is essential. Consider reviewing and automating your cash flow management system (for example, we exclusively use Xero) so you can stay on top of spend while seamlessly tracking and analysing your business’s critical financial data. In addition to this, it’s important to conduct monthly (or, at the very least, quarterly) reviews to help you keep your business’s cash flow forecast on track. And, of course, remember to set aside funds regularly to cover future tax obligations.
Did you know that several potential tax concessions are available to Australian businesses? For starters, the Australian government has introduced a tax rate reduction that’s applicable for nearly all small to medium-sized companies in an effort to reduce their tax burden while supporting their growth and competitiveness in today’s market. Beyond this, there are several additional tax incentives in Australia, such as the small business technology investment boost, the small business skills and training boost, and others, depending on your turnover and eligibility. To briefly explore these incentives, the technology investment boost allows companies to claim a 20% deduction of the technology expenditure when digitising their small business, while the skills and training boost offers a 20% bonus deduction on certain eligible training expenditures for your employees. But this is by no means an exhaustive list. For example, there’s also something called the instant asset write-off scheme that enables businesses to immediately deduct up to $20,000 of eligible assets purchased for the company. Concessions like this can be especially advantageous for businesses investing in equipment, machinery, or other assets. However, we want to restate that these various tax concessions are subject to eligibility, meaning it’s essential to research what applies to you.
Timing your expenses can be another simple yet effective tax strategy. For example, if you expect your income will be higher this year than the coming year, you may decide to prepay some of your expenses or postpone some of your invoicing (if applicable). You could also consider topping up your voluntary superannuation contributions in this case. Conversely, if you expect a higher income in the next financial year, you might decide to bring forward certain invoicing into the current year (once again, if applicable) or purchase necessary equipment or business assets that align with your business plan. Another thing involving your expenses that you should review before the end of the financial year is whether any of your customers’ debts are unrecoverable. If this happens, there are tax deductions that can be claimed for the ‘write-off’ of bad debts.
Although it’s important to understand the basics of your tax planning strategy for your Australian business, conferring with a professional tax return accountant, like one of our experts at Ashmans Accounting, is crucial. Tax laws and regulations are not only complex but subject to change, meaning it can be challenging for some business owners to navigate them on their own. However, our tax accountants are on hand to provide personalised guidance, ensure compliance with the latest tax laws, and tailor strategies to maximise your business’s financial performance.
Ultimately, your business taxes don’t have to be a headache this year. By carefully managing your cash flow, leveraging available tax concessions, and timing your purchases strategically, you can position yourself for greater financial efficiency and success this tax season. Plus, any time you need additional assistance, our friendly CA’s at Ashmans Accounting are here to provide you with the expert guidance and support you need. Happy tax preparation!
For more information about our tax accounting services or to speak with a team member, visit www.ashmans.com.au.
Before the end of the tax year in Australia (June 30th), you should do a few key things to optimise your tax planning strategy. This includes organising financial records, reviewing deductions and expenses, making superannuation contributions, checking eligibility for available concessions, and consulting with a tax professional if needed.
Several tax concessions are available, including the small business technology investment boost, the small business skills and training boost, the instant asset write-off scheme, and others, depending on your turnover and eligibility. That’s why it’s crucial to research and understand which concessions apply to your Australian business.
Unfortunately, regulations are subject to change at any time. However, at Ashmans Accounting, we understand the importance of staying up to date for our clients. If you need any updated information on tax laws, regulations, or other changes that could impact your business’s tax planning strategy, contact us today.
Common mistakes in tax planning include failing to keep accurate records, overlooking available tax concessions or incentives, neglecting to review your strategy regularly, and prioritising short-term gains over long-term financial health. By staying vigilant and seeking guidance from a tax professional, you can steer clear of these pitfalls and ensure your tax planning strategy is both effective and sustainable.
Speaking with a professional accountant can help you identify areas where you can minimise tax liabilities, safeguard financial goals, and ensure ongoing regulatory compliance. Working with our experienced tax advisors allows you to leverage their expertise to optimise financial planning, make informed decisions, and sustain long-term success while protecting your interests.
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