Tax Planning
Do you get to the end of the financial year and wish you had thought more about your deductions? Wondering whether you should have purchased that item and reduced your income or if you should have paid yourself that bonus?
Tax planning may sound like a bizzare or fancy term. My client’s often think that tax planning is only for “big businesses” or people that earn lots of money but nothing could be further from the truth.
What is tax planning?
Tax planning is looking at your financial situation before it’s too late. While most of my work as an accountant occurs after a period is finished, tax planning allows us to be proactive. To take action before it’s too late. Tax planning works like this:
- Evaluation- where do you currently stand? We look at your accounts well before the end of the financial year.
- Predict- What is likely to happen in the next quarter or month? We look at what you are likely to earn and pay out for the remainder of the month, quarter or year.
- Strategise- we create strategies using legally available tax incentives to minimise your tax and maximise value to the business. Once we are informed we can help you to decide when is the best time to make purchases and payments including bonuses for yourself or staff. We can strategise for losses, loans, changes in business structure, deferring payments (including bonuses), and even inventory to help you maximise your income and profit.
When we are tax planning we are looking specifically at your business and personal financial position. We are working to legitimately reduce your tax and to improve cash flow in your business.
How can tax planning help me?
Tax planning helps you to:
- beat confusion, anxiety and stress related to tax and cash flow
- to understand your financial position,
- improve the financial performance of your business,
- legitimately minimise your tax payable,
- understand what government packages and payments (including stimulus packages) are available to you,
- be proactive with plans and strategies for the months ahead,
- improve cashflow aka get and keep money in your pocket,
- create certainty,
- with wealth creation including superannuation contributions, when and how to make those payments
It aims to be proactive and make changes in advance to help future you.
Can’t I just DIY my tax planning?
You can certainly try. Tax planning is really technical, it requires a diverse understanding of the tax system, claims, as well as the current and changing legislation. It is best to have an expert with experience working with taxation and the tax department. The individual who helps you with your tax planning should be on top of all the current legislation, stimulus packages and government offerings to make sure you don’t miss out! They should also understand the impact of cash flow, uncertain economic conditions and superannuation can have on your financial position.
When is the best time to start tax planning?
NOW! We encourage people to set their tax planning sessions in April or May. This means you have plenty of time to make informed decisions, to save tax and buy what you need. It leaves time to implement effective strategies and even review predictions.
Ok I’m in, what do I do now?
If you haven’t already made your appointment, contact us to book your “virtual” appointment on 0411 876 912
We are offering appointments via phone or teleconference for your convenience and safety.