Tax time… it’s so far away and there’s plenty of time to organise my return closer to the deadline, right? How many times have you said this only to find yourself running around like a crazy person when end of financial year comes around!
Are you ready to break this bad habit?
In the months leading up to end of financial year it’s important to give your business a health check.
- Checking your systems and records are in order to avoid mistakes on your BAS.
- Reviewing your business structure. If you operate as a sole trader, partnership or company is this structure still appropriate for your current situation?
- Leave paper behind and keep records electronically.
Meeting deadlines is top priority for business.
Create a checklist to make sure you don’t miss any important deadlines. This includes payment summaries, BAS and Superannuation lodgements. If you don’t think you can make payments on time, contact the ATO to discuss a plan of action to avoid being hit with large penalties.
If you put in a little extra time and effort, you may be able to save your business some extra cash.
- Pay super early. Superannuation guarantee payments for your staff aren’t due until July, but paying these in June will give you a deduction for them in the current financial year as opposed to next financial year.
- Completing a stock take before end of financial year is the best way to write off any lost, damaged or obsolete stock.
- Stocking up on stationery and other consumables before June 30 can also help offset profits.
And one final tip – Don’t be afraid of the ATO.
Ask for help if you need it and be honest if you can’t meet deadlines.
So that’s it! Some simple steps and strategies to make your life easier at tax time. Now you just need to set aside some time to plan ahead!