Tax Planning 2021
May is our tax planning month!
Tax planning is like any expense in your business, needs monitoring and strategy!
To assist you, we ask that your accounting records be reconciled up to 31st April 2021.
We also ask you to think about what income your business may derive before the end of the financial year, as a result, this will assist in determining your tax position. Don’t forget Jobkeeper will be taxable.
Our team at Gartly Advisory proactive accountants in Melbourne will be in contact with you to book a time in the third week of May to talk about strategies that may assist you this year.
Time to think about tax planning
In doing so, we ask that you think about your circumstances as this will help us identify opportunities
- Any Circumstances that may impact your income this year
- The ability to contribute super contributions before June 2021
- If you wish to purchase any equipment before June
- Any beneficiaries of extraordinary circumstances that may impact on assisting you
We are waiting to see what the Federal Government will announce in the May Budget as this may impact our advice! As local Chartered accountants we know that as a small business a good tax plan is essential!
What can be done to help you as 30th June approaches !
Here are our tips!
- Look at what Superannuation you may wish to contribute!
- Are you intending to purchase any capital assets prior to June in anticipation of using the depreciation write offs ?
- Slow down on invoicing with the lead up to 30th June!
- Write off bad debts and obsolete stock!
- Prepay expenses where appropriate
- Staff bonuses – pay now rather than later and bring forward a tax deduction
Tax planning is recognising the peaks and troughs in business and how to take advantage of those opportunities year after year.
Write off debts that wont pay .
Why pay tax on something you may not get!
Write off those Bad Debts. We always recommend at about mid-May each year to review your debtor’s list . Any debtors that it looks like won’t pay then write off those debts by 30 June to claim the deduction this year. Write them off your debtor’s list but still pursue them
As a tax planning tip, Employers have to pay superannuation contributions within 28 days of the end of the quarter in June for SGC obligations . Bring these deductions and obligations forward.
Best wishes, Geoff and the team.
Reach out here if you need us