The End of Financial Year is Coming
With the end of Financial Year coming, we are sure you will have a few questions to put to us about what you should be doing before June 30.
Hopefully we have everything we need to get your business tax lodged over the next few weeks although we really hope this has already been done. There are also a bunch of things that you should be thinking about in preparation for the financial year ahead.
In this month’s blog we give you a few things to think about for this year & next but as always we recommend you give us a call or schedule a time to come in & talk to us about your unique situation.
Some things to think about before June 30.
As we have talked about in the past, there are some great new efficient ways to keep track of your finances. Some of the systems can identify revenue or expense codes from your bank statement automatically and they are a great help to both our clients as well as us at Hunt & McTavish.
In addition, you can download apps that capture invoices or receipts from a photo that will upload into your accounting software. Great!!
Some other helpful ideas:
· Check your Business Activity Statements are up-to-date and have been lodged with the ATO. Have at least a quick look at the data to see how things have changed this year compared to last year.
· Finalise your payroll & super obligations. With Single Touch Payroll (STP) requirements from the ATO you need to triple check that all your obligations are current. You may need to consider additional superannuation contributions for those employees that salary sacrifice.
· Don’t forget to complete a stocktake of your inventory prior to June 30. Consider any spoilage in your inventory & if you have a lot of plant & equipment than you should update your asset register.
Tax planning is important for many of our clients and this year it needs careful consideration given the changes in the economy & the impact its had on a lot of client businesses. As part of this exercise, we want to understand how your business is going & your cashflow situation.
One of the main factors affecting the amount of tax you pay is the structure you use for your business. Is the structure you set up years ago still the best one for you & your business? Should you move from a sole trader to a company?
So do get in contact with us about our views on tax saving before the end of the financial year.
Preparing for the financial year ahead.
Here are some ideas on what you should be thinking about for the financial year ahead:
· Superannuation changes. As of 1 July the Superannuation Guarantee Contribution rate is 10.5%. This means that you will need to pay-out more super to your employees from the beginning of the financial year.
· There may be an announcement on the changes in pay & wages for employees from the Fair Work Commission. So look out for that announcement.
· Take some time to update your budgets for the year. Lets hope there aren’t too many disruptions compared to the previous few years.
· As part of your review you may want to look at price changes for your products & services. Many prices of goods & services are already on the rise over the last few months so your inventory costs may require you to increase your own prices to maintain the profitability you need.
· Once again we do encourage you to look at your software & systems to help you & us keep track of your financial situation. It will save you a lot of time & we can assist you in recommending the best solution for your business.
Do you need to revisit your budgets, structures or tax before June 30? Talk to us today about what we recommend you should do before this financial year goes into the sunset...
Give us a call today on (02) 6942 4932.