Once again we come to the close of yet another financial year.
You as a business owner should consider tax and accounting strategies that can be put into place before year-end to minimise or defer some of your tax burdens. This can provide you with some cashflow relief allowing you to re-invest these savings back into your business for the start of another successful year!
We have put together some strategies to help you achieve a smooth and successful end to the 2017 financial year.
• Ensure your accounting records and bookkeeping are all up to date as at 30 June 2017. Contact us to forecast your future tax bills so that you don’t get any nasty shocks when you lodge your 2017 tax return!
• Accelerate legitimate deductions (and prepayments for small businesses) and defer the receipt of income (hold off invoicing where possible until after 30 June 2017).
• If you have received any income in advance (where the good or service has not been provided yet), this may not be assessable in your 2017 tax return.
• Small business owners can write off and claim a full deduction for any depreciable assets costing less than $20,000 that are purchased and installed ready for use on or before 30 June 2017. The May 2017 Federal Budget proposed to extend this concession to 30 June 2018, however, this has not yet been legislated.
• Write off any bad debts. To claim a deduction for bad debts, the debtor must have been “written off” in your accounting ledger on or before 30 June 2017. Consider reviewing this regularly and not just at year-end!
• To claim a deduction for employee superannuation, this must be paid before 30 June 2017.
• To claim a deduction for employee bonuses, the bonuses must be committed to or communicated to the employees on or before 30 June 2017.
• Conduct a year-end stocktake and review stock on hand to determine if any stock needs to be scrapped or written off.
• Review your payroll records and perform year-end reconciliations. Be prepared to issue PAYG Payment Summaries to employees by the ATO due dates.
• Donations to Deductible Gift Recipients should be made on or before 30 June 2017 to claim a tax deduction in your 2017 tax return.
• Ensure the minimum Division 7A loan repayments are made by 30 June 2017 and place any applicable Division 7A loans under loan agreements.
• Reconcile petty cash/float balances to the accounting records.
• Ensure your motor vehicle logbook is current and up to date. If you do not have a current logbook, you will need to start a new logbook for 12 weeks. This will last you for 5 years.
If you consider the above daunting and unreachable, contact EMspire Advisory. With over 30 years of combined accounting, bookkeeping, and taxation experience, we can help you make the 30 June 2017 year-end a smooth and successful one.
Please note that this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for advice specific to you and your circumstances.