The end of the financial year (EOFY) is the perfect time to start reviewing your finances and create new plans for the future. Do you have an effective tax strategy in place? Are you making the most of your tax return?
There are many things you can do now to maximise your tax refund. By taking the time to plan ahead before another financial year comes to a close, you’ll save yourself a lot of time as well as money.
Keep track of your business records
You can never be too detailed! The best way to remember everything you can claim is to keep track of your receipts. Make record keeping easier just by setting aside 10-15 minutes each week to update your logbooks or put all your receipts in a folder. Alternatively, use an online accounting software to back it up in the cloud; this will help protect you from losing valuable information through accidentally misplacing papers. If you don’t already have a system in place, start creating one now. The Australian Taxation Office (ATO) requires businesses to keep records for at least five years, although it’s recommended to hold on to them for at least seven years.
Buy big-ticket items before EOFY
If you’re thinking of making big purchases, right before EOFY is the best time to do it to see what deals are on offer. Retailers generally offer large discounts to clear out stock and balance the books from furniture, electronics and even holiday packages. Compare your options to see how much you can save.
Take advantage of tax-deductible items
For small businesses looking to take advantage of instant asset write-offs, make sure to do it before the 30th of June. The instant write-off scheme allows businesses to deduct assets instantly rather than claiming deductions over several years. What can you claim? You can claim assets related to your business, such as office equipment, vehicles, tools, and electronics.
Give to charity
Have you made any tax-deductible charity donations? You can declare anything above $2. Donating to charity can offset tax debt or help increase your refund. Make sure to keep track of your donations. You might find that while you’re supporting worthwhile causes you’ve also reduced your tax bill.
Make sure all employee obligations are up to date
If you’re registered for GST, make sure your BAS information is up to date. If you have staff, make sure to complete their PAYG tax reconciliations and ensure superannuation contributions are up to date.
Ask an accountant
If the world of income tax makes your head spin or if you feel like it’s a chore – don’t be afraid to ask an accountant for help and advice. After all, accounting fees are tax-deductible.
There are many ways you can save before EOFY comes around again. It just requires a bit of planning and making smart decisions.
For more information to help you run a successful small business, check out the following articles:
- The Best Free Online Tools for Your Small Business
- Tips for Surviving Your First Year in Business
- Working Capital: What is it and Why Does Your Small Business Need it?
- 25 Ways to Grow Your Small Business Fast
Need some extra help kick-starting your financial year goals? Whether you’re planning on renovating the office or purchasing new equipment, a small business loan may be the perfect solution! Call 1300 00 LUMI or visit our website to see how an unsecured business loan can help you.