TAX PLANNING: HOW PREPARED ARE YOU?
Yes, it’s that time of year again, and with three months to go, it’s time to get organised and start preparing for your year-end tax.
Most businesses we work with are using cloud-based software to record business transactions. This allows us to review their financial files and plan for tax time. Having all information on hand provides an understanding of where you are and where you are going and helps our team make informed decisions and, ultimately, plan more effectively.
Tax planning before tax time offers numerous benefits, and more importantly, it enables us to provide you with an estimate of profit for the year and how much tax is required to be paid (or to pay). Effective planning permits us to offer more options to help minimise tax by informing and acting before the financial year ends.
Tax planning involves forecasting the tax position and then reviewing the various options available, including:
- deferring income
- prepaying expenses
- ensuring lower tax thresholds are utilised
- temporary full expensing of new assets
- farm management deposits
- maximising deductible super contributions
It’s important to point out that not all scenarios will result in tax savings, and in some cases, it simply allows for greater flexibility and improved decision making. For longer-term clients with whom we have been working closely for years, tax forecasting and planning is all about understanding their financial position and instilling confidence that we are consistently reviewing their business to ensure profitability.
We would love the opportunity to offer your business the same advantage, so please get in touch to talk about how we can help you succeed.