The Importance of Tax Planning before End of Financial Year
Taxes are one of life’s certainties, and no one likes giving up some of their hard-earned cash. With proper tax preparation, however, it’s possible to pay less in taxes or receive a larger refund at the end of the year. While paying taxes is inevitable, there are several ways to diminish your tax burden and end each year with more money.
If you want to:
- Maximise your after tax dollars by minimising the tax you pay;
- Understand your future cash flow obligations;
- Ensure you comply with tax legislation and other governing body requirements;
- Take time to reflect on the year that was and lay out plans for the year to come;
- Let’s face it, sleep at night knowing your finances are under control;
then tax planning is for you.
Standard tax-saving strategies
By forecasting your expected 2021 income and tax payable for all individuals and entities in your family group, we can then develop strategies to ‘spread’ your income across your family group in the most tax effective way – and legally reduce your tax.
There are the standard tax saving strategies you can consider implementing such as:
- Maximising super contributions
- Writing off bad debts
- Pre-paying expenses (subject to prepayment rules)
- Reviewing invoicing
- Scrapping obsolete stock and/or plant and equipment
Our tax planning review service
Every year we offer to all our clients a comprehensive tax planning service that enables them to get ahead of the curve and stay there.
Our most successful clients undertake this review every year so they are aware of what their likely profit and taxation position is for the year, what strategies are available to them to legitimately reduce their taxation exposure and how this will affect their planning for the next 12 months.
We conduct a review of your business affairs. Profit forecasts are established in order to provide you with a base scenario, which gives you an understanding of your likely profit and tax payments if you choose to accept the position as it stands. Then, options and strategies are provided to help you legitimately minimise your potential tax. In some cases, these strategies are simple and can be implemented in your business internally, in other cases they are more complex, and you may need us to help. We’re here for you either way.
The feedback we receive is that the clients that undertake these reviews find the results invaluable. They have certainty around their actions and they can effectively manage their business’ most important resource – their cash. Contact us today and book in your TaxPlan meeting with us! The sooner we get started, the sooner we can help you save tax – well before 30 June 2021 for enough time to implement tax saving strategies.