“If you fail to plan, you plan to fail.”
It’s a well-worn quote that’s been attributed to Benjamin Franklin, Winston Churchill, and a few others in between.
Regardless of who framed the famous words, they hold some weight when it comes to 30 June and ensuring you put yourself in the best possible position to minimise your tax and importantly hit the ground running on 1 July.
End of Financial Year Tax Planning
Here at MWM we are all about planning and helping you to plan.
While Covid-19 and the uncertain business landscape it created made planning difficult, what we can say with certainty at MWM is that in our experience those who had a plan have navigated the past two years more successfully than those who didn’t.
June provides an opportunity to clean shop, get the best possible outcome for 2022, and plan for success in 2023.
Our aim is to add value whenever and wherever possible by providing you with critical information and advice at just the right time. The MWM team is primed and ready, with the aim of preparing you and your business for the end of financial year and beyond.
Here are just a few pointers to start you on the path to year end:
- Payroll Tax – Make sure your payroll tax is paid to State Revenue
- Superannuation – Get employee contributions paid before 30 June
- Bad Debts – Write off any bad debts
- Prepayments – Look for opportunities to prepay expenses
- Inventory – Complete stock-take and deal with any write offs for damaged, obsolete or missing inventory
- Fixed Assets – Take advantage of temporary full expensing rules, and ensure assets acquired or disposed of during the year are recorded
- Income Deferral – Look for opportunities to defer any income received in advance of the provision of goods or services until the new financial year
- Trust Distributions – Review your Trust Deed and ensure as trustee that distributions of trust income to beneficiaries are documented prior to 30 June
- Business Insurance – Review your insurances to ensure you have adequate levels of cover and protection.
In addition to preparing for the end of financial year, don’t forget to cast your eyes into the distance.
Time invested in preparing a detailed budget for the year ahead will provide focus, and ensure you’re on top of cashflow management, including customer collections, payroll, and supplier payments.
As always, the team at MWM Advisory are here to help guide you through the end of financial year and bring your plans to life in the year ahead.