Maximise your tax return with these 5 Effective Year-End Tax Moves
Take the pain out of tax time, be disciplined and take advantage of these effective tax moves to ease your June 30 burden:
1. Small Business Entity Concessions. Talk to your accountant or bookkeeper to see if you satisfy the 12-month rule. If your cash flow allows it, consider paying periodic expenses in advance. For eligible small businesses expenses like insurances, rent, magazine subscriptions, travel costs can be claimed as an immediate deduction for your business.
2. Write off bad debts. If you have amounts owing to you by customers that you are unlikely to receive payment for and for which you have previously declared as income (and effectively paid your hard earned tax dollar on) the ATO will allow you to write these off prior to 30 June. Review your accounts receivable with your accountant or bookkeeper to determine if your bad debts qualify!
3. Be sure to get your super deductions. The Australian Tax Office (ATO) only allows you to claim superannuation when it is paid. Even though your June superannuation legally doesn't have to be paid until July 28, paying employee and personal contributions by June 30 could mean valuable deductions for your business this year. Be prepared & pay early..
4. Manage your receipts. Results from a recent OfficeWorks survey showed that one in five (21%) Australians don't start thinking about their annual tax return until after June 30, missing valuable opportunities to capitalise on work related purchases in the lead up to the end of financial year. Not only does it impact on your personal time trying to find lost receipts but failing to provide proof of purchase or other reporting documentation is ultimately an opportunity missed.
5. Hire an expert. It is much cheaper and smarter to hire an accounting professional than it is to pay someone to fix a messy set of accounts once things are out of control. One of the biggest problems with losing historical data (despite the fact you are losing money in not claiming valid tax deductions) it means you are unable to make effective decisions about your business. Engaging people you trust to offer an outside perspective can help steer you in the most profitable direction. Contact us today for a free consultation ! http://www.accountarts.com/contact/