You can never be too prepared. Tax planning is important as a business owner and the end of the financial year is a good time for business owners to start thinking about their future, and how to get ahead.
“It's good to stay up to date on these tax legislative changes and how it might impact your business.” Shukri Barbara, the founder of Property Tax Specialists, said.
“I think generally things will remain the same. A lot of this year's Federal Budget was focused on extending current schemes such as the instant asset write off scheme.”
It is important to stay up to date on tax legislative changes and how it might impact your business, so as to plan accordingly. The best way to do this is to have an accountant.
“Each time you're looking to make a major tax or financial decision, you should be consulting an accountant who can tell you what tax implications there are by doing this,” Mr Barbara went on to say.
There are tax planning activities that every small business owner can implement right now that can put them in the best possible position to see out the next 12 months.
Prepay your expenses that have a duration of 12 months or less. Look at your business and what you bought in the last financial year, buy all those things you need for next year now
Taking the time to assess whether your business is working as well as it could, cannot be underestimated.
If your business made a healthy profit, increase your superannuation contributions. Prepay the April quarter employee superannuation guarantee.
The instant asset write off scheme for eligible businesses has been extended through to June 2022. It might seem simple, but make sure you take advantage of this.
Finding a good accountant can help owners identify bad debts and debts they can write off now. You can read more about restructuring your debt online at bsale.
“These are all options available for small business owners to ensure that they're maximising profitability in their business.” Mr Barbara said.
“Similar to the above, it's important to look at your structure/planning for your business.” Shukri said, going on to say for business brokers “It's important to look at your profitability (if any) and assess how best to maximise this. This is where the value of a great accountant helps.”
If you’d like to know more about your tax planning options for 2022 you can contact Shukri Barbara at Property Tax Specialists.
Caitlin has a background in media and communications, studying journalism at University and doing various freelance writing and production work over the past 5 years.
Having grown up in a family business, Caitlin understands and values the importance of small business. Particularly creating and encouraging opportunity for people from all backgrounds and experiences to follow their dreams, and not only be welcomed into the world of business, but succeed.