Tax before EOFY and beyond
Tax is an unavoidable business requirement but to many business owners and operators, it's a three-letter word that causes a lot of stress.
We spoke to Ryan O'Shea from Tax & Audit Solutions to get a few tips about how to ease the end of the financial year stress in your business.
Ryan's Top Tips
- Tax is not once a year, do it all year round.
- Pay super before 30 June.
- Review debtors. Determine if any of them are 'bad'. Bad debts can be written off and claimed as a tax deduction.
- Only buy assets that well actually assist and grow your business - not just because they will give you a tax deduction.
- Last minute deduction ideas - personal superannuation contributions, pre-pay other non-statutory expenses if possible, or donate to a favourite charity.
- Have you done a stock take? Do you need to do one?
- When doing the PAYG payment certificates make sure that the total of them equals the wages you paid per your BAS and IAS lodged during the year for gross wages and tax withheld.
Other important things to do in regards to your business and tax
- Do you have a business plan and has it been updated?
- Have you done a budget for the next financial year?
- Is your business structure right for you? Circumstances change over time.
- Are you in business with someone else? Do you have agreements in place for when you want to split? Consider a "buy / sell agreement" - it is like a "pre-nup" for your business.
- Review your insurances - make sure it is still relevant to your business.
- SuperStream. Get you superannuation sorted with clearing houses such as the free ATO version.
- Is your banking right for you? Are you getting the best deal with the most current banking product/service? Call your bankers in and ask them how it could be better.
Ryan's final tip is to work closely with your book keeper, tax adviser, accountant, lawyer, insurance agent and bank to make the most of the money that you have and you are in the best possible place with your finances.
Business is meant to fun, and having your tax in order keeps it that way!
Meet the Business
Ryan O'Shea is the director of Tax and Audit Solutions and is a registered tax agent, approved SMSF auditor and a registered company auditor.