Tax obligations coming soon!
Before we know it, 30th June will be here. This is a time when issues in the business finances can be highlighted. A major problem highlighted is failing to keep financial and tax records up to date (or at all). Other problems can be only speaking with your accountant at tax time, therefore failing to understand your tax obligations in order to develop appropriate strategies for your business.
It’s important to establish and maintain an accurate system for storing your paperwork. Cloud-based systems is a new approach to the storage problem and there are some great platforms out there – Dropbox, Invitbox, My Cloud Files, to name a few.
Recording your financial data (income, expenses, payroll, tax liabilities, etc) is also vitally important. This keeps everything in order and keeps you on track in terms of your financial performance. How do you know your business is profitable? Just because you’re busy doesn’t mean your business is financially successful! Cloud-based accounting software programs are a fantastic option with greater flexibility. Some of these include Xero, MYOB AccountRight Live, Intuit Online. There are also great desktop solutions such as MYOB, Quickbooks and Attache. It’s important to work out your business needs, and then identify which solution is going to fit best with your business. And don’t just think about how your business is now, how will your business look in 12 months from now, and five years from now? Will the platform you choose today still be relevant in the future?
It’s important to know when you should make capital expenditure acquisitions as this could have an impact on your overall tax position for the year. Talk to your accountant about what’s going to be best for your situation.
Meet with your accountant before tax time
Is the only time you meet with your accountant early in July to hand over the books for the tax return to be done, or in a mad panic mid-June when you realise the year has gotten away from you and it’s nearly end of financial year? You should meet with or have a conversation with your accountant at least two other times during the year. Your accountant is a great resource to your business in terms of strategic management and tax planning. Don’t wait until 20th June because some of the strategies that you’d benefit from may be too late to implement at this late stage!
It’s not too late … tax planning for next year
It may be too late to put some of this planning in place now, being so close to tax season. But it’s not too late to start thinking about your tax planning processes. What do you need to put in place so that you’ve got your tax planning in place for next year?