The end of the financial year is looming. It can be a stressful time for small business owners, but it can be made easier with the right planning and preparation.
We have prepared some tips to support you in making the end of the financial year a little easier. Implementing these recommendations and strategies will make the end of the financial year smoother, but could also save you thousands of dollars in tax.
Preparation is key
Before June 30 2022, you will need to prepare your small business for the end of the financial year. This involves Collating your paperwork and checking that all accounts are reconciled. We have created a full checklist to ensure you have everything in order in the lead up to the end of financial year.
Create a tax planning strategy
No one likes paying tax but there are strategies that you can implement to ensure that you’re not paying any more than you need to.
Tax planning involves strategies to legally structure your finances in a way that reduces the amount of tax you pay at the end of the financial year. This usually involves reducing taxable income or increasing your business expenses.
We recommend speaking with your Accountant about strategies that could work for your business.
Consider high-value purchases
Your tax planning strategy may involve purchasing high-value items to reduce your profit. This could include computers, equipment or a vehicle.
If your business has a turnover of less than $5 billion, you may be eligible to claim a full write off for any vehicle purchases before 30th June 2022, under the temporary full expensing rules. Please contact the team at APS Tax & Accounting for asset eligibility and exclusion rules.
If you are ready to purchase a business vehicle, you may also be eligible for an APS Car Loan.
Reset your business goals
The end of the financial year is the perfect time to reset your business goals. Now that you have a clear picture of your financials for 21/22, you can plan forward for what you want to achieve in the next 12 months.
Review what worked well and what didn’t, what you enjoyed doing most in your business and how you can reset your goals. Input your new goals into your accounting software to keep track of your progress during the year.
Need support this end of financial year?
Need help in getting everything in order for the end of the financial year? The team at APS Tax and Accounting has helped to establish, run and grow many businesses over the years through tax planning strategies, business structuring, SMSFs and more.
Written by Chief Financial Officer & Head of Tax, Richard Ferraro
Richard is a graduate of the Australian Institute of Company Directors (GAICD) and Fellow Certified Practising Accountant (FCPA) with 28 years of experience in Financial Accounting, Tax Compliance and Advisory. Prior to working for APS, Richard has been a Partner in a tax practice, and a Taxation Manager for large corporations such as Nissan Australia, Bendigo and Adelaide Bank, NEC Australia and Australia Post.
Richard supports his clients across a wide range of services including tax compliance and advisory services to clients who are Companies, Trusts, Partnerships, Self Managed Super Funds, When Richard isn’t working he enjoys spending time with family and friends. watching his beloved Magpies, and anything to do with cars from F1 to supercars and collectables.