Tax Planning Time

Here at Bayshore Bookkeeping we are in full BAS preparation mode now.

With four weeks until the March Quarter BAS is due, we are busy little bees getting all our clients accounts reconciled, their Jan-March Super payments lodged and BAS's prepared so they have access to up to date and accurate information to make informed business decisions.

Did you know its only 9 weeks until end of financial year! (EOFY) …….

Now is a perfect time of year to think about Tax Planning! Speak with your accountant if you think you may need this service.

Once your March quarter is finalised, or even better, if you have April reconciled too in your accounting system such as Xero... You have 9-10mths of data on how your business has performed this financial year.

Based on this accurate and up to date Bookkeeping, you should know:

• How much income you have made?

• How much have you spend on common reoccurring transactions like subscriptions?

• How much wages have you paid?

• What was your net profit?

You and your accountant should be able to work together to work out your estimated income tax liability for the year (ie. what you may owe the ATO in Income Tax.)

Armed with this information, you should be able to look at some possible strategies for bringing down the amount of tax you could owe:

• Prepaying expenses for the year ahead

• Extra Super contributions

• Purchase of any new equipment/machinery/vehicles? (The instant asset write off is likely to end 30/6/23!!)

• Is it time to change the structure of your business to reduce the tax rate you pay?

• Are you able to pay yourself a wage or increase the wage you currently pay?

There is so much more to tax planning, so speak to your accountant (or ask us for a referral to some great accountants in our referral network.)