The 30th June is fast approaching and now is the time to stop and check that you have all of your financial matters in order. There is nothing worse than hitting the 1st of July and realising that not taking care of the detail has cost you a valuable tax deduction.
The best advice I can give you is to speak to your Accountant TODAY! Check that everything is as you think it is and make a list of everything you must do prior to the 30th June 2012. It’s a small task that could save you big dollars!
Below I have highlighted a few key questions you should be asking. This is in no way a comprehensive list or advice but merely some of the more common areas that trip entrepreneurs up.
1) Are there payments you need to make?
Can you prepay any expenses e.g. insurances? Are there gifts or donations you could make? What payments do you need to (or could you) make before 30th June 2012?
2) Have you taken care of YOUR superannuation?
Have you made a contribution to your own superannuation fund? You will need to do this prior to the 30th June 2012 if you want to claim a tax deduction.
3) Can you pay your SGC commitments before 30/06/2012?
Make sure you pay June 2012 SGC payments before year end. While technically due on 28/7/2012 to meet the employer super guarantee obligations, bringing your payment forward will enable you to enjoy the deduction in the 2012 year. Can you pay your employees superannuation prior to 30th June 2012?
4) Do you need to do a stocktake?
It’s good business practice to routinely do stocktakes and it is really important to do one at the financial year-end to establish whether you have obsolete stock that needs to be written off.
5) Are there debts that you need to write-off?
Do clients owe you money that is no longer recoverable? If so, you need to consider writing off those debts prior to the financial year end.
Since it is the end of financial year, now is the perfect time to also do the following:
· Update your business budget (your profit and loss forecasts.)
· Update your cash-flow forecasts.
· Undertake salary reviews for your valued team members (including you!)
· Review your superannuation investments and strategies.
· Review your insurance coverages.
You may even want to consider taking out tax audit insurance – it’s relative inexpensive and could be a valuable investment for you.
And finally, something you may not be aware of… the ATO accepts credit card payments! That’s right, you can get frequent flyer points whilst paying the tax man. There are various charges for different credit cards - more details can be found here.
As I said at the beginning of this article, the best advice I can give you is to pick up the phone and talk to your Accountant today – they will be able to give you the right advice for your situation.
Happy Financial Year End – I hope it has been a stunning year for you!
This article was provided by Anthea Moffat MBA (adv), MIMC, founder and Managing Director of Business Fusion and The Business Masters Club.
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